H&M's Brand Image Crisis: Racism, Market Strategies, and Solutions

This report examines the challenges faced by H&M in its international market, specifically focusing on the racism controversy stemming from a controversial product design. The assignment analyzes the impact of the 'coolest monkey in the jungle' sweatshirt on H&M's brand image and the resulting social media outrage. It explores the concept of racism as a social issue, highlighting its discriminatory nature and negative effects on individuals and communities. The report provides a detailed analysis of the situation and proposes various solutions and preventive measures, including effective advertising strategies, public relations management, consumer feedback incorporation, corporate social responsibility initiatives, apologies for unethical behavior, and expansion into emerging markets. Furthermore, it emphasizes the importance of adopting ethical norms, understanding consumer needs, building relationships with governments, and utilizing B2C communication channels to rebuild the brand's reputation and address the ethical issues related to culture and race. The report concludes with a call to action for H&M to implement these strategies to overcome the crisis and regain consumer trust.

INTERNATIONAL MARKET
Scenario
H&M is the best fashion retailing company in the industry. It expands
the business with many branches all over the world. After achieving
goals successfully and with a lot of fame, it introduces the new designs of
clothes. All the products of the company were highly successful in the
market but in the recent years, it faced challenges just because of
conflicting design of few of its products. The brand image of the
company is falling down just because of wrong print on sweatshirts. It
caused racism which turned out to be a big social issue and it caused a
lot of damage at both the individuals level as well as community level.
Now, the company needs to change its image by adopting different
strategies and norms.
Black Child Issue
H & M is under fire by using
the black child as a model for
sweatshirt. It used the model
for supporting the phrase
“coolest monkey in the
jungle”.
The image notices in
advertisements on social
medias and many other
places. Social media users
erupted in outrage at H&M. It
is racism social issue because
it make difference on the
colour basis. It is an insulting
phrase for the black people.
Insulting someone and telling
bad things about the others is
also called racism (CNBC,
2018) .
CNBC. (2018) H&M slammed as racist for ‘monkey in the jungle’ hoodie. [online] Available from:
https://www.cnbc.com/2018/01/08/hm-slammed-for-racist-monkey-in-the-jungle-hoodie.html [Accessed
7/4/19].
The Wrap. (2018) H&M Is ‘Deeply Sorry’ for Ad Featuring Black Child in ‘Coolest Monkey’ Hoodie. [online]
Available from https://www.thewrap.com/hm-is-deeply-sorry-for-ad-featuring-black-child-in-coolest-monkey-
hoodie/ [Accessed 7/4/19].
Ma, H. (2004) Toward global competitive advantage, Emerald Insight, 37(3).
Fortune. (2015). The new world of business. [online] Available from: fortune.com/2015/01/22/the-new-world-of-
business/ [Accessed 7/4/19].
Harris, B., Ogilvy, A. And Rourke, J. (2006) Google in China: government censorship and corporate reputation,
Solution and Preventions
Advertise the product in an effective manner with the helps of people of different nation
It has to maintain the public relation by placing press releases of new product
Label the product with the important information for consumers
It has to take the reviews and feedbacks from customers (Ma, H, 2004)
Corporate Social Responsibilities activities have to adopt to build the social image
It should be apologise for its unethical behaviour and show the diversifies behaviour before
every promotion (The Wrap, 2018)
It has to expand the business in the emerging market
Such as Colombia, India, Indonesia, Kenya, Malaysia, Mexico, Poland and U.S. (Fortune,
2015).
Ethical norm should be adopted by the company to eliminate ethical issues related to region,
culture and caste.
Before taking actions, the organisation should comprehend the needs of consumer in selected
areas
It has to build the relation with the government and improve the reputation in the corporate
world (Harris, Ogilvy, and Rourke, 2006)
It has to adopt the B2C context to interact with the customers through different medias such
as Facebook, Twitter, and other web platforms.
Racism- A social issue
Racism is the belief in the superiority of
once over another, it discriminates the
people towards people based on their race
or ethnicity.
H&M discriminates the people on the basis
of their colour. Using a single phrase
causes the conflict between an individual
and the community .
It harms the black people to those who
does not harm anyone but discriminated
by their colour.
It does not affect them only but also
affects the whole community because
racism issue creates the atmosphere
where the people does not trust and
respect each other.
It is so offensive because it increases the
conflict between the people due to
reducing the social values of equality and
fairness.