FASHION COLLABORATION PROJECT

H&M X LEE
MARKETING FUNDAMENTALS
MS: ANNE CRAMER
DUE DATE -DECEMBER 2'2021

SUBMITTED BY:
AKANKSHA KAKKAR- N01497075
BHAVDEEP KAUR- N01502678
MENGYAO XU - N0144294
N U P O O R R A J E S H T
U R K A R - N 0 1 4 1 6 2 8 3
VIDHI DASWANI- N01461789
CONTENTS

03
INTRODUCTION

04
COMPETITION

05
STATISTICS

06
MARKET SEGMENTATION

07
TARGET MARKET
PROFILE

09
TOTAL PRODUCT
CONCEPT

11
BRANDING

12
PRICING

15
PLACE/DISTRIBUTION

16
PROMOTIONS

18
STRATEGIC
RECOMMENDATIONS

19
BIBLIOGRAPHY
INTRODUCTION

H&M X LEE = SUSTAINABILITY X DENIM

A holistic and ambitious collection by H&M has created a buzz in the media for
paving its way into being sustainable yet affordable. The women’s collection
consists of wide and loose fits with callbacks to the ’90s and combining it with
a capaciously cut version of Lee’s signature Rider jacket, dungarees and
overshirts for utilitarian enthusiasts, denim corsets with a “feminine edge”
(“Bridgerton” fans, rejoice) and Texloop RCOT recycled-cotton jersey pieces for
the full Lee x H&M look. Men's Collection consists of workwear jackets which is a
wardrobe essential with Lee’s authenticity of designs, relaxed-fit, five-pocket,
and carpenter jeans, rough-and-tumble dungarees, and denim bucket hats. The
collection was released on February 4, 2021.

HIGHLIGHTS:

Inspired by the '80s and '90s.

Low prices associated with the fashion brand are appealing to the
collection.

The collaboration consists of men’s, women’s, and kids’ clothing — including

oversized denim jackets, corsets, dresses, dungarees, and relaxed jeans.

H&M and Lee are both members of the Ellen MacArthur Foundation’s Jean
Redesign project which is working to create more circular denim.

H&M released the first-ever life cycle date on its website that can track the
water, carbon dioxide, and energy footprint of each garment from creation
to end-use. *Forest Stewardship Council

H&M X LEE Collaboration talk: https://www.youtube.com/watch?v=gtS_efsPsW4

VICTORIA
ALLEN TRANSPARENT CORK
ENERGY SAVING
- AND JARKON PAPER
WATER- EFFICIENT
DESIGNER SUSTAINABLE TENCEL
PROCESS
OF THE CENTRED LYOCELL THREAD
COLLECTION

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COMPETITORS
H&M COMPETITORS

Direct competitors
· Zara.
· Uniqlo.
· Gap.
· Forever 21
Indirect competitors
· ASOS.
· Macy's.
· American Eagle Outfitters.
· Abercrombie and Fitch.

What distinguishes H&M from the

competition?
The oldest of all is H&M. The
discount shop, which is noted for its
low costs, was founded in Sweden
in 1947 and has since grown to
become one of the most well-
known names in the fashion
industry. Both in Sweden and the
United States, the brand is a
publicly-traded company. H&M's
business philosophy is based on
providing clients with value by
providing fashion and quality at the
lowest possible price. It has clothing
for ladies, men, teenagers, and kids.
Customers have been offered
featured products that have been
touted as designer collaborations
with well-known names such as
Versace and Alexander Wang as
part of H&M's aim to drive sales. By
selling these items at H&M stores,
the company enhances its own
reputation by partnering with well-
known fashion figures, and it
provides clients with additional
lines to purchase that are distinct
from the company's basic designs
in terms of look and style.
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 LEE COMPETITORS

Direct competitors
· Levi's
· Wrangler
Indirect competitors
· Pepe Jeans
· Jack and Jones

What distinguishes Lee from the

competition?
Today, Arvind Mills Limited
manufactures Lee Jeans, giving the
brand a significant economic advantage
over its competitors because of the low
cost of raw materials in India. Despite
the fact that Levi Strauss & Co. was
possibly the most cutting-edge
workwear brand of the century, Lee
ended up playing second fiddle to them
for whatever reason. Levi's was given a
run for their money because of the
introduction of modern technology
such as zippers and sanforization. Lee's
daring decision to start cutting work
and westerner outfits smaller than ever
before gave them an advantage that
continues to make their clothing
current today. They may not have won
the denim Olympics of history, but they
did gain a following among some of the
world's most recognizable style icons,
ensuring their position in the menswear
canon for the foreseeable future.

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MARKET
SEGMENTATION

H&M and Lee are individually named which has their uniqueness in the fashion
industry. With availability almost around the globe, both brands have a diverse
yet linked market.

H&M Market segmentation(Psychographic): focusing on the middle-class

offering fashionable clothes at reasonable prices, with a focus on different
age groups with different product lines depending upon the personality and
social status. H&M focuses on the demand of the market by looking at the
needs and wants of the customers and making the product line accordingly.
Lee Market Segmentation(Psychographic): Focusing on people who want
to wear stylish denim at affordable prices, mostly middle-class audiences. Lee
Jeans is known for its jeans and other denim products. “ Lee ® is an iconic
American denim and casual apparel brand that has been purposefully
designing clothing to inspire you to live a life in motion ( About , n.d.)”.

Both the brands have one common factor, providing affordable fashion and
having a sustainable and ethical product cycle. The collaboration between the
brand resulted in the excellent quality of products with fashion-forward designs
at affordable prices. We have broken down the factors below for the market
segmentation of the collaboration collection-

Psychographic: Focusing on the customers who want fashion-forward styles

and are always trendy, likes to explore and experiment with their styles at
affordable pricing.

The collection was based on making sustainable, trendy, and fashionable denim
products which were based on the design and psychology of buyers who are
young mostly college-going, or just graduated, and like to be trendy. Living in
any metropolitan city as the collection was only available only due to the
pandemics market closure in Canada.

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TARGET MARKET PROFILE

GLOBAL AUDIENCE WHO LIKES TO WEAR FASHIONABLE CLOTHES,

GEOGRAPHIC BUT DOES NOT PRIORITIZE SPENDING MONEY ON HIGH-END
BRANDS

KIDS FROM 0-15, TEENS 16- 20, WOMEN 20 - 35, MEN 20

DEMOGRAPHIC AGE - 40 (MIDDLE CLASS - UPPER MIDDLE CLASS)

GENDER MALE, FEMALE AND KIDS

UNDER $40,000 ANNUALLY

INCOME

PSYCHOGRAPHIC OUTGOING, FASHION-FORWARD, LOVES TO FLAUNT

STYLES
LIFESTYLE

PERSONALITY FORWARD, COMPETITIVE AND TRENDY

LOYALTY HAVE BEEN CONSUMERS PREVIOUSLY, NEW

CONSUMERS

H&M TARGET MARKET

GEOGRAPHIC GLOBAL AUDIENCE WHO LIVES IN CITIES

DEMOGRAPHIC AGE 15 - 30 YEARS (UPPER MIDDLE CLASS)

GENDER MALE AND FEMALE

$50,000 AVERAGE
INCOME

PSYCHOGRAPHIC OUTGOING, FASHION-FORWARD,

LIFESTYLE LOVES TO FLAUNT STYLES, BEING SUSTAINABLE

LOYALTY HAVE BEEN CONSUMERS PREVIOUSLY

LEE TARGET MARKET

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THE COLLABORATION BETWEEN THE BRANDS DEALS WITH
THE FOLLOWING TARGET MARKET

GLOBAL AUDIENCE WHO LIVES IN CITIES,

GEOGRAPHIC WHO WEAR EXPERIMENTAL AND TRENDY
CLOTHES

DEMOGRAPHIC AGE 15 - 30 YEARS

GENDER MALE AND FEMALE

UNDER $ 35,000 - $40,000 ANNUALLY

INCOME

PSYCHOGRAPHIC OUTGOING, FASHION-FORWARD, LOVES TO

LIFESTYLE FLAUNT STYLES

PERSONALITY COMPETITIVE

LOYALTY HAVE BEEN CONSUMERS PREVIOUSLY

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TOTAL PRODUCT
CONCEPT

This pair of jeans was Lee® company’s first pair of women’s

jeans (released in 1947). It has now been relaunched as part
of the Vintage Collection. This pair represents the classic
and iconic high-rise straight-leg jeans found in many Lee®
products.

Core product: For female consumers who want the core

benefit of a casual outfit.
Basic product: For female consumers who want straight
legs rather than a tight fit.
Expected product: The product not only satisfies the
consumer’s need but also exhibits high quality (and
durability) at an affordable price.
Augmented product: The product derives from a well-
known classic brand that meets brand value.
Potential product: The product will not become outdated;
it will remain a classic and be worn for many years.

This H&M product is a long, gently flared dress in airy chiffon. It

has a low, ruffled collar, a V-shaped opening at the front (with
long ties), and a gathered yoke at both the front and back, which
creates a gently draped effect. It also boasts long, wide sleeves
with cuffs and a gathered seam at the knees for added volume.
Inside is a sleeveless liner dress in a jersey. (H&M, 2021). This
product is made with sustainable materials.

Core product: For the female consumer who wants to buy a

light dress.
Basic product: A unique style (i.e., a floral pattern) perfect for
spring and autumn wearing.
Expected product: The product is fashionable and maintains
a good shape, while simultaneously priced appropriately.
Augmented product: The product brings a higher level of
confidence; color and design reflect recent trends.
Potential product: Using sustainable materials.

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These wide-legged jean is inspired by a design from
the 1990s Men’s H&M x Lee collaboration collection.
As such, the button is engraved with both H&M and
Lee® brand names. These jeans come in 100%
recycled cotton, with a sign label made of cork plant
fiber.

Core product: For the male consumer who wants to buy

wide-legged jeans.

Basic product: The product reflects a classic, durable

style.
Expected product: The product has high-quality
materials from a reputable fashion brand.

Augmented product: The product has a limited

quantity (i.e., a limited release) from the H&M x Lee
collaboration.

Potential product: It uses sustainable materials.

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 BRANDING

The H&M brand personality is known as an internationally recognized, diverse, and

trendy fast-fashion brand that offers clothing at an affordable price, with a focus on
remaining environmentally conscious. Most people associate H&M with a core
brand equity of fast fashion. Public consumers around the world maintain constant
expectations for the brand. In order to continue to expand this consumer base,
H&M launched its Customer Loyalty Program, wherein customers who join receive
10% off of their Second purchase. After that, every $1 spent accumulates 1 point,
with 150 points allowing a $5 voucher. After reaching 500 points, consumers are
entitled to better perks and/or offers. H&M’s main consumer group is largely
comprised of young consumers. In her Marketing Week article of March 31, 2021,
Michaela Jefferson noted that: “In its financial report for the three months to the
end of February, H&M said its customer loyalty program, H&M Membership, now has
over 120 million members in 26 markets – a 71% increase on the same period last
year” (Jefferson, 2021). This indicates that the loyalty program remains poised to
maintain a long-term relationship with consumers
Additionally, with the increase in environmental efforts over the past few years, a
number of fast-moving consumer goods (FMCG) brands have been criticized for
environmental pollution. Since 2013, H&M has implemented an old clothes
recycling project. Green recycling bins are set up in stores around the world.
Customers who donate old clothes are eligible to receive H&M discount coupons
for the purchase of new clothing items. At the same time, H&M has also actively
launched a “recyclable materials as raw materials for clothing” series (i.e., the
Conscious series), replete with items in a number of different clothing categories.
The Lee® brand personality is classic, iconic, historic, high-quality, reasonable
prices, and highly innovative. Lee® is an iconic American denim brand, and its
brand equity is it's historic and innovation. Originally, jeans were recognized solely
as men’s clothing, with the female market largely ignored. Lee® seized the
opportunity to target women, specifically developing denim clothing for women
that added feminine beauty and curves. Therefore, this innovation expanded the
Lee® consumer base. The company is known for listening to customer opinions and
being focused on improvements to existing products, and the development of
innovative products. In addition, in order to ensure high quality and consumer
satisfaction, each Lee® product item carries a one-year warranty. However, Hitesh
Bhasin conducted a SWOT analysis of Lee® and found that “Lee and Wrangler are
the most popular among the 50+ demographics and are the least popular among
the millennial consumers” (Bhasin, 2019). Therefore, Lee® company’s classic designs
and high-quality products, combined with H&M’s young consumer groups and
sustainable production experiences lead to a collaboration that can help broaden
the consumer base of both brands while strengthening consumer impressions of
both brands’ social response awareness.

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 PRICING

H&M's competitors are the major fast fashion brands Zara, Forever 21, Gap, etc, so in
order to be at the top, they have adopted a cost minimization technique. This is
achieved by minimizing the cost of manufacturing and transportation.
Typically H&M's products are priced at $25 whereas other brands are priced at $45
and up.

50%-70%
Markup on most
profitable
items such as
hats, scarves, formal
clothing and jewellery

LEE's competitors are LEVI'S and WRANGLER and PEPE Jeans. In order to compete
with them, it has to adopt competitive pricing strategies.

Product Pricing:

Shorts: $45-$102
Jackets: $50-$140
Tops: $24-$78

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 PRICING

H&M X LEE

The aim of the collection was to

keep the prices low so that
everyone can afford it and
therefore it falls into the budget
category.

The collaboration pricing range

can be seen in the following lines,

Accessories

Hats: $17-$20

Bags: $20-$30.67

Belts: $17

Clothing

Corsets: $26-30

T-shirts: $20

Jackets: $50

Jeans: $50-$60

Overalls $60

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 PAGE 14

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PLACE/
DISTRIBUTION

H&M:
H&M sells its items through its selective stores situated in significant urban communities
across the globe (4135 stores). In certain nations because of administrative standards, H&M
offers its items through diversifying accomplices. It additionally offers its items through
web-based stores from where the client can look over the rundown of accessible items
and buy them through web-based installment. The items are conveyed at your expressed
location. Modest Monday is sold through chosen retailers worldwide and through
independent stores incorporating its leader store in London. The items are produced in
nations where modest work is accessible to diminish costs. The garments are planned by
H&M and its different brands as indicated by the portion they are focusing on. H&M has
fostered an incredible store network throughout the long term.

LEE:
Following is the dispersion procedure in the Lee showcasing mix: By 1995, Lee started to
move its creation to China. This brought about generous development in Australia, India,
Japan, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and different nations in the
Asia-Pacific. LEE brand items are sold through mid-level and customary retail chains in the
U.S., and online at www.LEE.com. The items outside the U.S. are sold through retail
locations. LEE items are sold through mass shippers, division, and strength stores in
Canada and Mexico, and South America. The items are advertised through merchants,
specialists, licensees, and single brand or multi-brand organization stores. The stocks
created are then transported to the individual selling focuses. The brand is spread all over
51 nations across the globe with retail locations and independent display areas in Asia,
Latin America, and Europe as the significant business sectors.

COLLABORATION:
LEE X H&M sold their products online and in selected stores.

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PROMOTION
H&M:

TV advertisements: H&M promotes their designs through creative advertisements.

YouTube: H&M has a YouTube channel where it engages with its customers through
unique ad campaigns.

Digital Marketing: It satiates in exorbitant search engine marketing and social media
marketing to modify the potential buyers into customers.
Promo codes and discounts: Promo codes and discounts are offered on both online and
retail stores during the end-of-season sale.
Public Relations: Parineeti Chopra opened the first H&M store in India. Such activities lead
to quick publicity for the brand.
Sponsorships: H&M collaborates with high-end designers, influencers, pop stars, and sports
stars.

LEE

Subscription pop-up: Sales pop-up is an essential marketing tool that focuses on creating
new leads by introducing offers and discounts.

Sticky Bar: LEE uses a sticky bar at the bottom of product listing and details pages.
Sales stickers: LEE uses sales stickers on the product listing page to boost products and
drive sales. It also calls attention to ratings and reviews for each product thus providing
authentic feedback of recent sales.
Social proof: In the middle of the product details page, review snapshots of purchased
items are provided. This helps customers to view previous purchase history before buying a
product.
Recently viewed pop-up: LEE places a sticky bar on the right side of all the pages. It shows
items that others have recently viewed.

COLLABORATION

Digital marketing: The brands used #leexhm to promote their collaboration on Instagram.
Here is the link - https://www.instagram.com/explore/tags/leexhm/

YouTube: H&M advertised the collaboration on their official YouTube channel.

Here is the link - https://www.youtube.com/watch?v=gtS_efsPsW4

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 Subscription Popup

Sticky bar

Sticky bar

Recently viewed Popup

Recently viewed Popup

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RECOMMENDATION

The brand collaboration concept for H&M is to promote its product and advertise the
variety it sells. H&M makes a collaboration collection four times a year with different
brands or popular reality shows or sitcoms. Which are mostly available online and in a
few selected stores, this collection is mostly groovy and sometimes not accepted by the
average audience which H&M serves.

Though H&M and Lee are said to be one of the best collaborations from the brand
and were almost sold out within a month, the collaborations are not always best
suited for the audience. H&M can focus on other marketing strategies like getting
back the 10% off on becoming a member on the first purchase.

Making the collab collection exclusive to online sales, which will limit the expenses
on the supply chain.

Due to the launch during the pandemic, the collection was promoted highly. H&M
can take such an approach with other collections in the future.

Taking the holistic approach towards future collection making them more
sustainable not just through the fabric content but also have logistics supply chain
and promotional ways.

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BIBLIOGRAPHY

(n.d.). HM.com. https://www2.hm.com/en_ca/productpage.1019417004.html

(n.d.). HM.com. https://www2.hm.com/en_us/life/culture/inside-h-m/leexhm-collab-

magazine.html

Bhasin, H. (n.d.). SWOT Analysis of LEE Jeans. MARTKETING91.

https://www.marketing91.com/swot-analysis-of-lee-jeans/

About. (n.d.). Lee. Retrieved November 26, 2021, from https://www.lee.com/about.html

(n.d.). Lee.com. https://www.lee.com/shop/womens-vintage-modern-lady-lee-high-rise-

classic-straight-jean 35257.html?
merchCategory=LEE_WOMEN_FEATUREDSHOPS_VINTAGEMODERN&dwvar_35257_color
=3525746#feature-area-1

Bhasin, H. (2019, May 21). SWOT Analysis of LEE Jeans - LEE SWOT Analysis Explain.
Marketing91. Retrieved December 1, 2021, from https://www.marketing91.com/swot-analysis-
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H&M. (2021, January 21). Lee x H&M. H&M. Retrieved November 25, 2021, from
https://www2.hm.com/en_ca/life/culture/inside-h-m/leexhm-collab-magazine.html

Hunter, H. (2021, April 7). A Sketched History of Women's Golf Fashion. LPGA Women's
Network. Retrieved December 1, 2021, from https://lpgawomensnetwork.com/a-sketched-
history-of-womens-golf-fashion/

Jefferson, M., & Rogers, C. (2021, March 31). H&M banks on customer loyalty to help turn
around Covid losses. Marketing Week. Retrieved December 1, 2021, from
https://www.marketingweek.com/hm-customer-loyalty-covid-losses/

Jefferson, M., & Rogers, C. (2021, March 31). H&M banks on customer loyalty to help turn
around Covid losses. Marketing Week. Retrieved December 2, 2021, from
https://www.marketingweek.com/hm-customer-loyalty-covid-losses/

Kumari, P. (2020, May 15). Brand | H&M - A Brand Delivering Affordable Fashion For
Everyone. The Brand Hopper. Retrieved November 27, 2021, from
https://thebrandhopper.com/2020/05/15/hm-fashion-delivering-affordable-fashion/

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LEE x H&M: Collaborating for the next generation of more sustainable denim. (2021,
January 20). H&M Press site. Retrieved December 2, 2021, from
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generation-of-more-sustain.html

MBA stool team. (2020, 04 26). Lee SWOT Analysis, Competitors & USP. MBA Skool.
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retail/3817-lee.html

Perry, D. (2021, January 28). H&M's new denim collaboration bridges sustainability and
affordability. The Diamondback. Retrieved December 2021, from
https://dbknews.com/2021/01/28/hm-lee-denim-sustainability-fast-fashion/

Automizely. (2021, July 19). Effective marketing strategies used by Lee to boost sales.
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sales/.

Team, M. B. A. S. (2021, August 8). H&M Marketing Strategy & Marketing Mix (4PS). MBA
Skool. Retrieved December 2, 2021, from https://www.mbaskool.com/marketing-
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Constantine, B. (2021, February 4). H&M x Lee Jeans Spring 2021. Complex. Retrieved
December 2, 2021, from https://www.complex.com/style/2021/02/hm-lee-jeans

Lee and H&M Team for Sustainable Denim Collaboration. (2021, January 19). WWD. Retrieved
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denim-jeans-sustainable-1234698010/

H&M, H. W. (2021, January 21). Lee x H&M. H&M. Retrieved December, 2021, from
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