H&M: The Retail-Clothing Giant Assignment Help

Does it surprise you that the second-largest clothing retailer is selling in stores in only54 countries plus an additional 10 countries online? Why do you think it is not covering more of the world’s countries?

H&M does not own any of the factories that produce its clothes. Instead, it relies on some 1,900 factories and 900 suppliers to create what its team designed. These factories and suppliers are mostly in Europe and Asia. How can H&M ensure that its customers receive the quality expected in the clothing?

H&M stresses sustainability in its promotional campaigns. How can it ensure that the working conditions are appropriate for the 1.6 million people that serve in its supplier network? Is it even H&M’s role to ensure that the working conditions and environmental impact are great in every market it engages in?

If you worked for H&M, what would you suggest that it focus on to become even larger than it is now? Should it have its own factories? Should it expand to more than the 64 countries (54 with stores and 10 online) that it is in now? Should it control more of the global supply chains?

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H&M is one of the largest clothing retailers in the world – second largest, to be precise. Thus, it does come as a surprise that such a clothing giant has stores in just 54 countries, with an online presence in another 10. The possible reason why H&M does not cover the rest of the world’s countries is because it feels that it is already successful to a sufficient extent. In other words, the revenue that the company accumulates is possibly enough to compensate for the expected returns.

Also, H&M does not own any of its factories for producing the clothes but relies on cheap labor from mostly Asian countries for creating the designs that the company supplies. In order to ensure that the consumers receive clothing that are at par with their expected quality, H&M can conduct a series of rigorous quality tests designed to determine if the clothing is up to the mark or not. This will ensure that the customers get their money’s worth, while also maintaining the company’s reputation.

In order to ensure safe and appropriate working conditions for the suppliers, H&M can make sure that the workspaces are legal, even though it is not necessarily their duty to oversee this issue. The company relies on its suppliers for the clothes and thus helping them maintain sustainability will only act in their best interests. This will also enable the company to keep offering the affordable prices for the clothing.

If H&M as a brand wishes to become even larger than it is right now, it needs to understand the pathway to targeting a larger and more global consumer base. For instance, a larger section of their clothing is targeted towards women, and thus, the men’s clothing line can be accordingly expanded with the intention of venturing into newer markets. Instead of owning factories (which would increase production costs), H&M could penetrate the market through innovative product lines rather than mindless global expansion.