H&M Company Target Market Analysis Case Study


Demographic market segmentation is the process of categorizing the market according to the variables that range from age to nationality. Within the continuum are variables including gender, family size, and income. Also, occupation, education, religious affiliation, and racial orientation are used to categorize the market. Demographic attributes aid firms in understanding the precise needs of the customers. The reason is that the customer needs are normally based on the variables. Age, gender, and income are the most commonly applied demographic variables in market segmentation.

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Psychographic market segmentation is the process of grouping the customers according to personal attributes that include status, lifestyle, and disposition (Levy, Weitz, and Grewal 53). The assumption is that the products and services offered normally reflect the individual characteristics as well as the living patterns. In this case, the psychographic variable used in segmenting the market includes lifestyle, interest, and opinions as well as personal activities.

Demographic profiles


The needs of consumers differ with age. As such, firms always tend to offer a variety of products that tend to meet the needs of a particular age bracket. The consumers are aggregated according to age, depending on the manner in which they exhibit similar requirements and responding in the same way to the market actions. Based on this analysis, H&M will be targeting the younger generation, particularly between the ages of seventeen and forty years. The age bracket represents over 75% off the fashion apparel market.


In terms of gender, the firm will be targeting females between the ages of seventeen to twenty-five years. The firm will also focus on younger males between the ages of eighteen and thirty years. Essentially the firm targets younger generations belonging to both genders. The reason is that the younger generations make about 63% of the total apparel market.


Market segmentation, according to income, is common among the firms. Most firms target customers within the high-income category, particularly firms dealing in fashionable and luxury products. However, H&M is targeting both low and high-income customers. In other words, the firm’s products directly appeal to low and high-income consumers.

Ethnicity mix

Even though ethnicity and racial factors are used to segment the market, the demographic variable is rarely applied. The reason is that most consumers perceive the marketing strategy as discriminatory (Levy, Weitz, and Grewal 53). Essentially, H&M does not segment its market depending on ethnicity, race, or nationality variables.

An overview of the firm’s clientele

The firm’s clientele consists majorly of the young females that constantly purchase the firm’s products. Females are more stylish and like fashionable products. As such, they find the firm’s products to be more appealing and satisfying. The firm’s emphasis on quality and aesthetic value make most of the products appealing directly to the young female clientele and enabling them to have repeat business (Walter 52).

Psychographic profiling


Lifestyle incorporates the classification of clientele in terms of collective principles, ideas, beliefs, and interests. However, no standard lifestyle customer profiling exists. The type of psychographic profiling remains critical to H&M due to the type of products offered. The firm is applying the 4C’s model in customer classification (Walter 52).


Profiling, according to interests, is the grouping of clientele in terms of their common interests. Firms dealing in fashionable and luxury products such as H&M commonly apply psychographic profiling (Walter 23). Certain products directly appeal to a certain group of customers that have similar interest. For instance, customers with an interest in sports will be placed under the same category.


In this case, firms categorize clients according to accomplishments and actions. For instance, clients with high positions, such as managers, are grouped. Similarly, customers with low positions, such as ordinary employees are categorized into one group.

Works Cited

Levy, Michael, Barton A. Weitz and Dhruv Grewal. Retailing Management. New Delhi, India: McGraw-Hill Education (India) Pvt Limited, 2013. Print.

Walter, Sebastian. Expansion Opportunities for H&M – Market Analysis. Munich, Germany: GRIN Verlag, 2010. Print.

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