Sustainability Challenge Faced by H&M (Hennes & Mauritz) UK Ltd

This document discusses the sustainability challenge faced by H&M (Hennes & Mauritz) UK Ltd, a well-known clothing retailer. It explores the impact of the fashion industry on the environment and the company's failure to adapt to sustainability. The document proposes a solution involving the use of sustainable fibers and processing technologies. It also outlines the practical implementation of the solution through existing sustainable practices, increased investment in R&D, and education and networking.

H&M Hennes
and Mauritz UK Ltd

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identification as well as explanation of a challenge faced by the chosen organisation..............1
TASK 2............................................................................................................................................3
Identification as well as analysis of a solution for addressing the challenge determined in the
previous task faced by the selected organisation........................................................................3
TASK 3............................................................................................................................................4
Practical implementation of the solution identified for addressing the challenge faced by the
company......................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Hennes & Mauritz AB, most popularly abbreviated as H&M is acknowledged to be a
well renowned multinational clothing retailer. The company is most famous for the fast fashion
clothes provided by it for all for the range of teenagers, children, men and women. As per the
reports of 2019 November, it has been analysed that this organisation carries out its operations
within the bounds of more than 80 nations with the help of more than 5100 outlets across the
globe. These stores employ a base of 130,000 individuals. This is identified as being the 2nd
biggest clothing retailer across the global periphery, with the first position being backed up by
Spanish company Inditex which is the parent entity of ZARA. The entity operates via online
mode in 35 nations.
Then current project seeks to explore the strategic positioning of an organisation taking
an example of H&M (Hennes & Mauritz) UK Ltd. Now, Hennes & Mauritz UK Limited is
mainly the dealer of apparel retail (Bonilla, 2019). However, besides clothing, it also offers
cosmetics, accessories, footwear, etc. to customers across the world. The report consist of
detailed research upon a challenge faced by the respective company. Further, it includes the
solution identified for addressing the concerned challenge. Lastly, it comprises of the manner in
which the organisation can implement the proposed solution in the entity in a practical manner.
TASK 1
Identification as well as explanation of a challenge faced by the chosen organisation
H&M (Hennes & Mauritz) UK Ltd is a well known brand within the confines of United
Kingdom owing to the extensive attention paid by the organisation to the latest market trends
along with the market considerations (Calderón Carrillo, 2019). In this regard, it has been
identified that with the passage of time, sustainability is the trend which is largely prominent
within the clothing retail sector. However, H&M (Hennes & Mauritz) UK Ltd has not been able
to successfully adapt to this in an effective manner. This acts as one of the biggest challenges
faced by the respective clothing fashion retailer over the course of time. The information and the
associated aspects concerning the sustainability challenge for H&M (Hennes & Mauritz) UK Ltd
is explored in a detailed manner as follows:-
1

The fashion industry over the course of time has been undergoing severe sustainability
issues. In this relation, it has been identified that one pair of t-shirt and jeans require 20000 litres
of water.
(Source: https://www.statista.com/chart/19164/insatiable-thirst-of-fashion/)
By the end of 2030, it has been forecasted that the water consumption by this sector
would reach a triggering total of 118 billion cubic meters which implies an approximate growth
of 50%. furthermore, the carbon footprints released by this industry will reach to a total of 2791
million tons. Apart from this, the quantum of waste would be around 148 million tons (Can the
Fashion Industry Ever Really Be Sustainable?, 2020). These predictions indicate the level of
devastation and damage that would be caused to the environment via the clothing or the fashion
sector. Such forecasts have been made even when so many brands have already undertaken due
measures for bringing progress to this aspect of the business. Many small and big fashion
companies have made important efforts to minimize the consumption of chemicals, energy,
water, etc. Also, some brands have been leveraging the sustainable cotton initiatives. Even when
the respective industry is taking such huge initiatives to make it sustainable, there is still a lot
more required to be done on the part of many organisations.
2
Illustration 1: The Insatiable Thirst of Fashion, 2020

With the passage of time, it has been noted that H&M (Hennes & Mauritz) UK Ltd has
also been lacking behind in taking initiatives for promotion of sustainability within the
organisational premises and concerned industry. H&M (Hennes & Mauritz) has been accused of
burning approximately 12 tonnes of unsold clothing every year despite the constant sustainability
initiatives taken by the organisation (H&M accused of burning 12 tonnes of new, unsold clothing
per year, 2020). The respective fashion giant is acknowledged to have incinerated approximately
60 tonnes of usable, unsold clothing with the passage of time. This claim has led to tarnished a
global image of the company within the customers who prefer to purchase clothing from this
brand. This signifies the extent to which sustainability has been serving as an issue for the
respective fast fashion retailer. This has led to to lowering of its brand value and market share in
the global market place. As a result of this, the once loyal shoppers now seek to get shifted to
other fashion brands that are sustainable and adopt eco-friendly initiatives.
TASK 2
Identification as well as analysis of a solution for addressing the challenge determined in the
previous task faced by the selected organisation
The sustainability issue that has been identified in the previous task has been constantly
harming the brand image of H&M (Hennes & Mauritz) UK Ltd in the long run. Since the year
2012, it is reported that there has been an approximate growth of 10% in the number of clothing
items bought within the bounds of United Kingdom. Not just has the consumers started buying
more but they have become aware of the latest market trends and thus the outdates clothes stay in
the wardrobe being not used for over a period of one year. Fast fashion is one of the root causes
of the sustainability challenge prevailing within the clothing sector (Can the Fashion Industry
Ever Really Be Sustainable?, 2020). These predictions indicate the level of devastation and
damage that would be caused to the environment. In this relation, this issue has led to tarnished
reputation of the multinational clothing retailer along with the declining profitability of the entity
(Yu, 2019). In this regard, it has become largely important to address this challenge in an
effective manner so that the stake and image of the respective clothing retailer can be restored.
Thus, a solution has been proposed that can be duly adopted and implemented by H&M (Hennes
& Mauritz) UK Ltd to address the challenge of sustainability as per the expectations and
3

requirements of the customers prevailing in market place. The solution is discussed in detailed
manner as follows:-
H&M (Hennes & Mauritz) UK Ltd can make use of new kinds of fibres along with
processing techniques or techniques that assist in promoting sustainability. A new generation of
fibres along with technologies are proposed to be used by the respective clothing retail
organisation to consumer lesser energy and water and allow the company to have positive
impacts at the time of maintaining and processing (Laurila, 2019). An effective usage of
technology will allow the organisation to solve the environmental and social issue named
sustainability. This is an effective measure towards implementing sustainability within the
premises of the organisation and gaining support from the different stakeholder groups.
By making use of the new category of sustainable fibres and new processing
technologies, the entity will be able to become a sustainable fashion brand. Thus, it will be able
to create a fashion which is most considerable of society, environment and human kind. Such
fashion will seek to reduce the negative impact upon the environment. The ultimate goal of
H&M (Hennes & Mauritz) UK Ltd with the implementation of the proposed solution will be able
to develop a system that does not leave any negative footprint. Sustainable fashion is not just
confined to offerings of the organisation but is acknowledged to be a philosophy which seeks to
embrace sustainability within design process, supply chain strategy and consumption practice.
Thus, sustainable fashion by the respective organisation will lead to the savings of water, natural
resources, energy, etc. (Nguyen, 2018). Also, this will imply safer working conditions for the
labour employed within H&M (Hennes & Mauritz) UK Ltd. Being an eco-ethical brand, the
intent of the company would be to become a desirable place for employees.
TASK 3
Practical implementation of the solution identified for addressing the challenge faced by the
company
The discussion done upon the sustainability challenge and the proposed solution to deal
with the same leads to raising of a question regarding the implementation of this solution.
Identification of a potential solution is not the only task that needs to be done by an organisation
to deal with a challenge, it is also important to effectively implement the same within the
organisational premises. In this relation, H&M (Hennes & Mauritz) UK Ltd is looking upon
4

resolving the issue of sustainability by opting new form of fibres which are sustainable along
with new processing technologies. To implement this solution, a 3-course action has been
proposed to the management of H&M (Hennes & Mauritz) UK Ltd which is discussed as
follows:-
 Existing sustainable practices: It is important for H&M (Hennes & Mauritz) UK Ltd to
show support for transfer and scaling of existing sustainable practices and (materials)
solutions, specifically for the ones that are already ascertained to be cost effective
(Tannady, 2020). This will enable the company to become a sustainable leader within the
bounds of fashion retail sector.
 Increasing investments in R&D: For this, H&M (Hennes & Mauritz) UK Ltd needs to
utilise the potential of new funding models. This will imply a solution which
demonstrates higher up-front costs, and respective political incentives (Oishi, 2018). By
investing in Research & Development, the respective company will be able to identify the
latest and potential ways through which sustainability can be ensured within the
organisational premises.
 Education and networking: Progress here needs to be supported by a respective
education and networking push; e.g. via “qualitative circular holistic design framework”
(Torremans, 2019). This will allow H&M (Hennes & Mauritz) UK Ltd to implement
sustainable practices and activities within the bounds of the company. With the help of
this, the customers will show greater support to the entity and thus H&M (Hennes &
Mauritz) UK Ltd will be able to increase its brand image in the global market place.
CONCLUSION
On the basis of above discussion, it can be easily put forth that sustainability is a crucial
consideration for every organisation. In this relation, the biggest challenge faced by H&M
(Hennes & Mauritz) UK Ltd is acknowledged to be sustainability. Over the course of time, this
organisation has been accused of claims which go against the efforts made by the company to
foster and promote sustainability in the organisational premises. This leads to tarnished global
brand image and dampening profits. In addition to this, it has been analysed that new fibres and
processing technologies can be put to use for dealing with the concerned sustainability challenge
of the entity. Apart from this, it has been ascertained that there are various initiatives or actions
that can be undertaken by the entity to implement the solution in the organisational premises.
5

These actions tend to include promotion of existing sustainable practices, increasing investment
in R&D, and education and networking.
6

REFERENCES
Books and Journals
Bonilla, M.D.R. And et. al., 2019. The interaction of Instagram followers in the fast fashion
sector: The case of Hennes and Mauritz (H&M). Journal of Global Fashion Marketing.
10(4). pp.342-357.
Calderón Carrillo, J.M., 2019. Relationship analysis between culture and business within the
indian market. Case: Mcdonald’s, Hennes & Mauritz and L'oréal (Bachelor's thesis,
PUCE-Quito).
Laurila, E., 2019. How customer service effects the consumer experience and journey: Case
Hennes & Mauritz.
Nguyen, D., 2018. Social media marketing strategy-Case study H&M Hennes & Mauritz.
Oishi, A.H.A., 2018. Analysis of H&M home supply chain and implementing such in
Bangladeshi market of same arena.
Tannady, H. and et. al., 2020. UPAYA MENINGKATKAN KUALITAS PELAYANAN DI
OUTLET HENNES & MAURITZ WIDFORSS MENGGUNAKAN ANALISIS
SERVICE QUALITY. Journal of Business & Applied Management. 13(1). pp.019-032.
Torremans, P., 2019. Holyoak and Torremans intellectual property law. Oxford University
Press, USA.
Yu, M., Cao, D. and Tan, J.Y., 2019. CSR-consumption paradox: examination of UK apparel
companies. Journal of Fashion Marketing and Management: An International Journal.
Online
The Insatiable Thirst of Fashion. 2020. [Online]. Available Through:
<https://www.statista.com/chart/19164/insatiable-thirst-of-fashion/>.
Can the Fashion Industry Ever Really Be Sustainable?. 2020. [Online]. Available
Through:<https://www.thefashionlaw.com/can-the-fashion-industry-ever-really-be-
sustainable/>.
H&M accused of burning 12 tonnes of new, unsold clothing per year. 2020. [Online]. Available
Through:<https://fashionunited.uk/news/fashion/h-m-accused-of-burning-12-tonnes-of-
new-unsold-clothing-per-year/2017101726341>.
7