H&M

Case study about H&M based on sustainability

Case study about H&M based on sustainability

Question 1) CASE STUDY

Case Study

H&M's business concept is to give the customer unbeatable value by offering fashion and quality at the best price. To be sure they can offer the latest fashions they have a design and buying department that creates their clothing collections.

To ensure the best price by:

being cost-conscious at every stage

buying large volumes

buying the right products from the right market

having a broad, in-depth knowledge of design, fashion and textiles

having efficient distribution

having few middlemen

H&M is driven by strong values such as simplicity, continuous improvement, team spirit, cost-consciousness and entrepreneurship. H&M's own designers interpret fashion trends and create fashions that are accessible to all. The stores are revitalised daily with new items.

Quality is a central issue, from the idea stage all the way to the end customer. The quality work includes extensive testing, as well as ensuring that the goods are produced with the least possible environmental impact and under good working conditions.

H&M does not own any production factories. Production of goods is outsourced to independent suppliers, primarily in Asia and Europe, through H&M's local production offices. Nor does H&M own any of its stores. Instead H&M rents store space from international and local landlords.

Important Facts about the Company

H&M was established in Vasteras, Sweden in 1947 by Erling Persson and sells clothes and cosmetics around the world. Some brief facts about H&M:

H&M offers fashion for women, men, teenagers and children

Germany is the biggest market, followed by the UK and Sweden

H&M also sells own-brand cosmetics, accessories and footwear

H&M does not own any factories, but instead buys its goods from around 700 independent suppliers, primarily in Asia and Europe

H&M employs about 76,000 people worldwide

H&M has about 16 production offices around the world, mainly in Asia and Europe

Online shopping is currently available in Sweden, Norway, Denmark, Finland, the Netherlands, Germany, Austria and the UK

The collections are created centrally by around 100 in-house designers together with buyers and pattern makers

The stores are refreshed daily with new fashion items

The turnover in 2009 was SEK 118,697 million

Today H&M operates in 38 countries, with around 2,000 stores and has 76,000 employees all working to the same philosophy: “To bring you fashion and quality at the best price”

Integrating Corporate Sustainability in Business

In a case where a business targets corporate sustainability, a product or design that balances social and environmental impacts but does not account for economic impacts may not be profitable in the long run. Products that balance environmental and economic impacts may fail due to lack of social acceptance or undesired social impacts. Moreover, products that balance economic and social impacts but do not account for the environmental impacts may cause unacceptable environmental damage. Sustainable solutions and products exist only at the intersection of economic, social, and environmental concerns. When all three of these impacts are accounted for, and the TBL is ...