H & M Innovation Analysis

Innovation capability

Throughout the collaboration history of H&M, there is a common characteristic shared by collaborating brands is that these brands are all luxury designer brands. This is a continuance of H&M in spirit of innovation. In apparel industry, designer is always the core innovation power and image of a brand, therefore, the collaboration of H&M and these luxury brands brings a positive influence in enhancing its innovation capability. In the past, in-house designers of H&M shoulder subtotal innovation work, it is a great challenge to internal human resources because apparel industry acquires sustainable innovation and high feasibility in production. Compared with other resources, the VIRO performance of innovation and human

Because of the interiorized identity in the past, H&M is facing a challenge of upgrading its brand structure. For example, Inditex, also coming from Europe, has a more comprehensive brand structure than H&M. Its market area is more international compared with H&M, mainly relying on European sale (see appendix 2). Although H&M has COS and &Other Stories two brands focusing on middle and high level market, their market performance and influence of brand are both poorer than Zara, since the first impression of H&M embedded in customers’ minds to some extent. Designer collaboration is an effective way to build a better brand identity with a short time and the fact shows that it truly works. Many customers choose H&M from those high street fashion brands because they think more choices provided in H&M, from basic clothing to more fashionable trends and limited-edition collections added specialty to this brand (Ginman, Lundell, & Turek,

This high corporate social responsibility adds value to this brand and makes it more unique among similar high street retailer brands. With those collaboration, H&M has accumulated abundant relational capital in all walks of life, which means some stereotypes from public are changing with its improved branding. In a long term, positive brand image can help H&M develop its career in a sustainable way and provides more possibility in upgrading its brand structure. In turn, good brand image will bring more collaboration opportunities, developing in a virtuous