H & M Case Analysis

760 Words 4 Pages
H&M a Swedish based company and the second largest fashion retailer in the world. It is known for its trendy clothing at an affordable price. As a fashion-conscious consumer, myself, I would position the company between Macy’s and Forever21, catering to people who want the more sophisticated styling from Macy’s, but at Forever21 prices. Their quality is slightly better than their competitors, with a frequently worn shirt lasting about 3 years before it starts to develop holes.
Beyond the company’s style, price, and quality, it is a fickle company. Since the 1990s, along with companies like Nike and Walmart, H&M has been implicated in numerous scandals regarding the use of child labor and safety in their supplier factories in developing countries.
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In the Spring 2014 season, H&M launched its Hollywood Glamour collection which was unique not because of style, but because all of the collection was constructed using 100% organic cotton and recycled polyester (Shen, 2014). H&M had sold similar products in the past as well. These typed of collections from H&M was unique from others using similar materials in that it neither compromised price nor styling. Most clothing using organic cotton is more expensive and usually has an earthier, more flowy aesthetic, trying to cater to the stereotypical environmentally conscious consumer. The reasoning for this divergence, according to the company, was to create the same clothes in an ethical way (Cooper). The implicit message is that H&M is not using more sustainable materials as a marketing scheme to reach a new customer, but to impact the values of their pre-existing ones. Furthermore, H&M uses more organic cotton than any other fashion retail group. As of 2012, 7.6% of its cotton was organic and it has the long-term goal of having 100% of its cotton from sustainable sources by 2020 (Siegle, 2012). This goal seems reasonable give that the company has been doubling its organic sourcing annually since 2008

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