Sustainable marketing

The wider concept of market sustainability in a business refers to the ability of the business to sustain its market and a wide base of consumers as days go by. According to Chartel, Peattle, Ottoman and Polonsky (2002), the concept of sustainability also involves the commercial success of the business. In terms of innovation and strategy, the concept of sustainability also involves the corporate social responsibility of the business in keeping in line with the need to preserve the environment (Fuller, 1999), as well as fulfilling the social needs and wants of the people that constitute the environment of the business. In its market sustainability plan, the business, thus, should show respect for the environment, and provides massive opportunities that will enable it to compete, adapt to the changing business world, as well as to compete with its competitors (H & M, 2012). The H & M Singapore is one of the businesses that have been able to meet the criteria for sustainable markets, and has been able to thrive in the highly competitive fashion industry. By frequently reviewing its business strategy, the H & M Singapore makes sure that its strategy is in line with the requirements of the millennia, on order to enable the business to keep moving and making profits in the competitive industry. In lieu of this, the current paper analyzes how H & M Singapore, a Fashion provider, is dealing with the challenges that are presented by its sustainability agenda. The paper accesses the extent to which the firm is managing the transition from niche to mainstream through its marketing activities. To fulfill these requirements, the paper will also indicate the suitability of the firm’s overall strategy and the tactics that the firm uses to reach its broader consumer base.

 

History and Overview of H & M Singapore Company:

The company traces back to 1947, when its first store was opened in Vasteras, Sweden. Since then, the company has continued to expand in both stores, fashion, ideas and employee base (H & M, 2014). The company has managed to expand from its mother country to countries like the US, Spain, France and Canada. Of late, the company has been able to expand its markets to the emerging markets like Japan, China and the entire Eastern Europe. According to the a report by the company’s management (H & M, 2014), the company has entirely self-sponsored its expansion activities and has also made tremendous steps in expanding its products, like by going organic. Over the years, the company has also mad tremendous changes in information technology, enabling its marketing department easy time in marketing its products online. Research and Markets (2007) outline H & M Singapore as one of the fastest growing stores in the fashion industry in the world. It is, thus a world leader in the sector of fashion. The company is highly regarded because of being the pioneer of “fast fashion,” a term that is used to describe the latest fashion in the market. It is observed that the H & M Singapore company has an efficient and flexible supply chain that enables it to respond quickly to the fast changing demands of the fashion industry. Additionally, the company has a wide asset and employee base, and has a good popularity among the consumers, a feature that gives the company an advantage over its competitors.

Overview of the H & M Singapore Marketing and Sustainability Strategy:

According to Research and Markets (2007), the H & M Singapore company has been able to meet its targets because it has a good base in understanding its target market. Through such, the company is able to institute the principles of low prices, and high fashion ends, getting closer and closer to what the mainstream consumers want. According to Chartel, Peattle, Ottoman and Polonsky (2002), a good understanding of the market niche and critical study of the consumer needs enables a company to strategize effectively, winning the hearts of the consumers with its products. Such strategy has enabled the H & M Singapore to win the younger women, who make the biggest group of consumers in the fashion industry. Additionally, the company sells a broad range of fashionable products. Research and Markets (2007) record that these products are renewed frequently in order to keep at par with the changing needs of the society. The other item in the company’s sustainable strategy is attractive prices, which are reviewed frequently to ensure that they maintain their customers.

The company also has made sure that its stores are located in prime locations in order to maintain a steady flow of their customers. Additionally, the passionate executives of the H & M Singapore Group enables the company to keep at par with the changing needs of the customers. The H & M Singapore Company has also built a strong product concept in the countries that it operates, an element that adds flavor to its sustainability plan (Brand Learning, 2014). A constant improvement and growth in the financial performance of the company is also an added advantage of the company’s sustainability plan. Although the company has continually sought to expand overseas, it has never ignored the power of the local consumers (Innovation Leaders, 2014). This is another advantage for the company towards sustainability. Investment in the information technology sector has enabled the company to deal with the challenge of the changing technology, as well as the challenge of meeting many consumers at a go (Innovation Leaders, 2014). Also, the company has sought to sustain its market and relevance in the industry through collaboration, like the adoption of celebrity endorsement (Innovation Leaders, 2014). Through corporate social responsibility, the H & M is a big supporter of some of the programs ofthe United Nations, showing clearly its commitment to meet the social needs of the society, and to preserve the environment. By adopting sophisticated information technology, the company has been able to establish a fast growing online shop, where customers can shop for their products online (WBCSD, 2014). This has greatly boosted their earnings, and expanded their customer base, contributing positively to the company’s sustainability plan.

Analysis of the Strategy and Sustainability Agenda.

Maintaining a brand in the market is one of the elements of an effective sustainability plan (Ottoman, 2010). Besides contributing positively to market sustainability, successful branding enables a company to expand its consumer base and to boost its sales (Vrontis & Papasolomou, 2006; FCGA & Burke n. d; Brand Learning, 2011). From the presented sustainability strategy of H & M Singapore, it is clearly evident that the company has highly invested in brand marketing in the many countries that it has invested. For example, the company has been christened “fast fashion” (Innovation Leaders, 2014), because of the passion and prowess demonstrated by its executives in brand marketing concerning the newest fashions and designs in the industry. Considering the sensitivity of the industry, the company faces the challenge of being overpowered by the competitors if it does not convince its customers that its products are new, unique and up to date. On this front, the company has performed extremely well, since it has succeeded in creating an impression among the consumers that it is, indeed the best in the industry, especially in providing the latest fashion. It has thus shielded the other companies that deal with similar fashions, gaining an advantage of customer trust.

Exploiting the local market is a very important strategy in sustainable marketing. According to Dockerty (2006), many firms fail in their sustainability agenda because they too much focus on expansionist policies and forget the role of the local market, and the local business environment. However, firms that have scored high in their sustainability agenda have always highly regarded the importance of their local environments in enhancing market sustainability. Nagy, Toth and Ollah (2012) and Martin and Schouten (2012) argue that; the sustainability agenda must strongly factor the local environment. According to these authors, the plan must also strongly consider the sustainability of a green, natural environment both locally and internationally. As Innovation Leaders (2014) recorded, the H & M Singapore is a company that has never ignored its local environment. This element of the sustainability agenda gives the company the advantage of the local consumer. The executives of the company seem to understand the role that a local consumer can play in marketing a company and supporting its sustainability. The local consumers’ positive views about the company are very important in getting new markets for the company with less effort from the management and the marketing team. Therefore, on this front, the H & M Singapore Company has scored highly, since it has effectively utilized the power of the local consumer in boosting its sustainability plan. By doing this, the company has successfully dealt with the challenge of being resisted on its backyard. This has enabled the company to easily win the confidence of new consumers from foreign lands.

Corporate social responsibility is a major element of enhancing the market sustainability of a business. Armstrong (n. d) and Middleton (1998) Observe that many firms have performed poorly in their market sustainability plans because of their reluctance to participate in the social concerns and needs of the society that surrounds them. Malovics, Scigene and Kraus (2008) argue that the strong market sustainability of a business is derived from the willingness of a firm and its entire team of executives to actively encourage, promote and participate in a society’s sustainable development. Without such, the stakeholders of the firm, especially the customers lose taste with the firm and its products. It is, thus paramount that a firm considers the aspects of sustainable development as they draw their market sustainability agenda (Belz & Peattie, 2012). From the H & M Singapore sustainability criteria, it is evident that the firm has highly factored in the issue of sustainable development. The company’s annual report (H & N, 2012) indicates that the company takes sustainable development as a core responsibility of the organization. According to the report, sustainable development entails agitation and observance of human rights, adherence to ethics, anti-corruption and issues that promote environmental conservation. The report indicates that H & M, in its production process, strives to reduce environmental impact and promote social development. The company does this with the main goal of promoting a positive change among the people of the society that the company serves worldwide. For example, the company holds that; by participating in international trade, their activities will lead to benefits in other countries, especially in economic growth. To make true its proposition of sustainable development, the company went ahead to become the world’s largest consumer of organic cotton (H & M, 2014). By using organic cotton in their production process, the company contributes directly towards environmental conservation. On the role of CRS in market sustainability, Armstrong (n. d) advises that strong CSR values also adds to value creation, leading to profit maximization by the firm. The H & M Singapore Company has benefited big from its investment in corporate social responsibility.

Collaboration is the other important element that the H & M Company banks on to promote its sustainability agenda. According to Innovation Leaders (2014), the company has received important celebrity endorsements, starting 2004, that has enabled the company to make tremendous steps in maintaining its sustainability agenda. Apart from getting the advantage of being supported by top celebrities like Madonna and Rolf, the company received the blessing of Princess Kylie Mingoue, who had her clothing from the company launched in 2007 (Innovation Leaders, 2014). Additionally, the H & M Company has been in the forefront activities geared towards promoting the lives of the masses, like the activities of the UN, the Designers against AIDS and other such organizations. Such activities have painted the company as being people-minded, enabling the company to gain the trust and confidence of the organization. This is a very important aspect of the maintenance of its sustainability plan. According to the Network for Business Sustainability (2012) and Uren (2013), the business firms that have not been reluctant to partner in promoting societal welfare re more preferred by community members than those that stay away from societal programs. In addition, the society has a certain value that it attaches to its celebrities and other opinion makers (Chhabra, 2010). Thus, a business firm that associates with such people gains the confidence, loyalty and the trust of their followers, and this is an advantage to the sustainability agenda of the business (Jamal & Dredge, 2012). A report on sustainability by Accenture (2013) shows that collaboration is a major element in the path of market sustainability by a business firm. It is, thus, highly advisable for a firm to invest highly in collaboration. On this front, the H & M Singapore Company scores highly since it has recognized and utilized the role of collaboration in enhancing market sustainability.

The other strategy that the H & M Company utilizes to do away with the challenges facing its sustainability agenda is understanding its target market (H & M, 2012; H & M, 2014). A company performs extremely superbly if the marketers of its products understand the market trends and dynamics (Iyiola, n. d). According to a report by the company (H & M, 2012), the company has been able to come up with strategies that ensured young women make their biggest consumer group. This points to the high likelihood that the young women consumer group increases the company’s consumer base with a very high percentage. The World Business Council for Sustainable Development (2005) records that successful marketing managers have been able to identify and exploit the target markets for their products. The Council reiterates that the full exploitation of the target markets allows marketing managers to identify new product opportunities, influence new product development and explore the potential of partnerships. This is followed by a step by step process of building trust with customers in order to sustain them to the company. In relation to building the marketing opportunities, Iyiola (n. d) emphasizes that the sustainability agenda must strongly focus on global trends, and employ the tenets of the changing global business environment. The H & M company scores well in this area because it has considered the global concerns facing the industry and acted swiftly.

The company has also highly adopted technology as a major element of its sustainability agenda. According to H & M (2013), the company has, over the recent past, advocated the use of online shopping to expand its customer base. It has, as a result expanded its online shopping to meet the changing technological demands of the millennia. The company came up with a mobile application through which orders can be placed online by the customers. Stansfield, Conolly, Carteli, Jimoyiannis, Magalhaes and Maillet (2009) and Weed (2012) emphasize on the importance of incorporating up-to-date technology in the sustainability plan. According to these authors, customers perceive such a business as being sensitive to the need to keep innovative. In the current technological world, where most of the transactions have been digitized, customers will favor a business that is adopting the changes for convenience and ease of shopping.

The pricing strategy is also a very vital component in the sustainability agenda (BBMG, 2007). From the H & M (2012) company report, the H & M company is very cautious while handling price issues. In essence, the company sets rices that are very attractive to the customers. Measures to lower prices are applied from time to time in order to attract customers. A RICCS Foundation (2010) research shows that, in many circumstances, a reduction in prices leads to an increase in the number of customers. The H & M Company targeted such an advantage by reducing their prices. The Joseph Rowntree Foundation (2012) also supports this hypothesis.

Conclusion:                           

In sum, the H & M Singapore Company has a very effective sustainability plan. The plan has many well-sought aspects that enable the company to tackle challenges that may affect its market sustainability. The company employs high-level technology in online marketing and shopping. The company also applies the concepts of reducing prices and making sure they have new and unique products in the market always. The executives of the company are highly motivated and passionately innovative. Regarding market potential, the company has invested in many countries, even outside its mother country. However, the company has not ignored the importance of the local market in its sustenance. The company’s sustainability plan is drawn with careful consideration of the environmental conservation. In consideration of all these facts, the H & M Singapore sustainability plan is very effective.

 

 

 

 

 

References

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