Product details

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Abstract

Consumerism had led to the concept of 'fast fashion' - the business within the fashion industry that thrived on cheap and speedy production of low-quality clothing that met the latest trends. H&M had a robust supply chain and cutting-edge technology that helped it to become one of the leading fast fashion companies. H&M's supply chains were fast and its apparels were affordable due to the low cost of labour from overseas. That gave the company a competitive advantage. However, its apparel manufacturing process was depleting the natural resources and damaging the environment. The clothes were being manufactured, used, and discarded very quickly, making clothes more of a commodity than keepsake and customers expected a constant stream of new clothing. However, as time passed, the consumers became more conscious of the environment and started to shun fast fashion, and H&M also started several initiatives to mitigate the damage. It focused on circular business models that incorporated reuse and recycling. Would H&M's sustainability initiatives be enough to compensate for the environmental damage?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

Featured company

H&M Group
Employees:
10000+
Turnover:
USD 24.8 billion (2019)
Type:
Public company
Industry:
Fashion retail

About

Abstract

Consumerism had led to the concept of 'fast fashion' - the business within the fashion industry that thrived on cheap and speedy production of low-quality clothing that met the latest trends. H&M had a robust supply chain and cutting-edge technology that helped it to become one of the leading fast fashion companies. H&M's supply chains were fast and its apparels were affordable due to the low cost of labour from overseas. That gave the company a competitive advantage. However, its apparel manufacturing process was depleting the natural resources and damaging the environment. The clothes were being manufactured, used, and discarded very quickly, making clothes more of a commodity than keepsake and customers expected a constant stream of new clothing. However, as time passed, the consumers became more conscious of the environment and started to shun fast fashion, and H&M also started several initiatives to mitigate the damage. It focused on circular business models that incorporated reuse and recycling. Would H&M's sustainability initiatives be enough to compensate for the environmental damage?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

Featured company

H&M Group
Employees:
10000+
Turnover:
USD 24.8 billion (2019)
Type:
Public company
Industry:
Fashion retail

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