Inquiry Project Report: Analysis of H&M Retail Company Trends

This report provides a comprehensive analysis of the retail company H&M, focusing on current trends, company performance, and strategic recommendations. The report begins with an introduction to inquiry-based learning and then delves into the background of H&M, a multinational Swedish clothing retailer known for its fast fashion. The main body of the report explores the impact of sustainable fashion, online retailers, and the COVID-19 pandemic on H&M's operations. The report then performs a PESTLE and SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, considering political, economic, social, technological, legal, and environmental factors. Primary research, including a questionnaire, is used to gather employee perspectives on current trends and the impact of COVID-19. The report concludes with recommendations for H&M to maintain its success and adapt to the evolving retail landscape. The report also includes references to relevant books and journals to support the analysis.

Inquiry Based Learning

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK..........................................................................................................................................................3
Background of the Company...................................................................................................................3
Analysis of the Company.........................................................................................................................4
Recommendations...................................................................................................................................5
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................7
Books and Journals:.................................................................................................................................7

INTRODUCTION
Inquiry based learning can be understand as an approach in which an individual
underlines to learn in his learning process. In such type of approach, student learn himself
instead of asking from their teachers or mentors and they are required to know and motivate and
encourage to explore the materials, share their ideas and ask as many questions for their learning
(Bevins, S., Price, G. and Booth, J., 2019). The aim of this learning as it lets a learner to explore
and build knowledge through discussion and experiences. There are many different approaches
to learning which may include guided learning and small group discussion. This type of learning
focuses on learning by doing practical things rather than memorizing material or facts.
MAIN BODY
TASK
Background of the Company
This report is going to highlight on the retail association named H&M which is an
abbreviation of Hennes and Mauritz AB. It was founded in the year 1947 by Erling Persson. It is
a Swedish Clothing Retail Company. The respective company is multinational in nature. H&M
is popular for its fast fashion clothing for women, men, children and teenagers. H&M has
declared as the second largest clothing retailer throughout the world.
Sustainable Fashion
Sustainable fashion is a process or a movement of nurturing change to fashion products
and the system towards greater social justice and ecological uprightness. It concerns more than
on fashion textile or products. This can be also understood as an eco-fashion. In other words, it
can be described thus partly about producing shoes, clothes or accessories in socio-economically
or environmentally in sustainable manner (Verawati and Prayogi, S., 2021, February). Moreover,
with this, it is also about patterns of use and consumption which was demand flows in customer
outlooks and behaviors. In the reference to H&M, the company statements to be moving towards
more sustainable practices and has been impacted on the environment of fast fashion and labor
who make their products or clothes. Furthermore, the respective company has clearly made some
success for the environment. H&M has clearly taken some helpful steps to reduce impact on
environment. They initiate a recycling program where a customer can return their clothes from
any kind of brand in their store as a result it gets some positive impact towards sustainability
report (Norton, M. L., 2020). The company practices in their supply chain management from
ecofriendly materials such as recycled polyester or organic cotton in their products. The
company having their products with exclusive conscious design team into prints, embroideries
and jacquards on beautifully crafted accessories and garments made from sustainable products.
Some examples; Patagonia cloths, Levi's and many more.
Impact of online retailers
It has been researched that H&M has been slowing down their performance in their
physical stores. The company has brush up their strategies and plans for opening store and
expanding their physical appearance. The respective company has a threat from their
competitions even in both stores online and offline and which is responsible for their change of
strategies. It has also been studied that Zara's owner Inditex has experienced for good sales but
H&M faces more competition in online marketing from rivalries such as Boohoo and ASOS. The
company is more focused on their offline stores as a result it is understandable that the growth in

online stores is too slow to watch the potentiality in e-commerce business. The sites of H&M
were designed poorly as a result it slows down the sales from sites. There are few sections in
which the company has to improvise their strategies and plans.
Impact of COVID-19
Due to this Covid-19 pandemic many of the customers are more likely to prefer online
shopping is it prevents social distancing and by online shopping they can save their time and
explore many of the things in sites and applications. H&M is more focused on online marketing
as well but they get impacted negatively in some areas due to this Covid-19 situation, most of the
consumers having emotional concern that they challenged with financial instability and many of
them lost their jobs as a result their regular pattern of shopping has decreased (Widada, W. and
Et.al., 2019, April). Another reason is that with lack of information on sites or applications
customers to not get attracted with online shopping as they don't get the proper knowledge on
return policies or payments options and many more. H&M has been said that due to this
lockdown situation many of the stores get affected and few customers visited their stores that
remained open. It also has been said that it takes time to recover the situation and to get back to
normal after the situation is cool down (Selisne, M., Sari, Y. S. and Ramli, R., 2019, April). The
company is more focused and changed their strategies and planning and invest more according to
the behavior of customers changed during this period.
Analysis of the Company
PESTLE Analysis:-
Pestle Analysis of H&M brand identifies the various external factors such as political,
economic, social, technological, legal and environmental which impacts their business
operations. Pestle analysis provides a framework to companies which is imperative and supports
to understand the flexibility in market and help to improve their business functions continuously.
Political:
The brand has major production setup in Lebanon, Egypt and Turkey. Lebanon has been
politically is not stable before and after its freedom. China and US trade war impacted and is not
only for the respective brands but for the entire industry. The impacted result increases the prices
of textile products and demands of the labor has been growing ever since. The labor demand for
fair working conditions, improved wages, and safe workplace has been majorly raised. Labor
laws in developing countries has been changed regarding sufficient or minimum wages
(ROHMANIYAH, S. P. and SABARIMAN, B., 2019). BREXIT and Covid-19 has also greatly
impacted and offers a challenging situation to operate business functions. Overall it gets
increased in the cost and customers find cheaper option of their clothing and more.
Economical:
Covid-19 pandemic has been a situation for stress and this situation has changed the
behavior pattern of consumer extremely. Virus spreads all over the world and due to this the
supply chains also were extremely affected. The whole world faced a recession in economics due
to this disease. The situation of Covid-19 impacted the brand, as most of the time these stores
were closed down because of the situation of lockdown in many nations which result in decline
sales and lost customers.
Social:
H&M has been impacted by this situation and understands and how it is significant to be
careful about customers and environment. H&M also donate US dollars of five lacs to WHO.
The respective foundation has extremely focused on the women in Bangladesh who gets more
affected due to this situation because they work in garment sector (Henrikson, R., 2019). The

brand is also focus on their employees and place labors at every stage by paying sufficient
amount of wages and also they focus in promoting the efforts and believes in gender equality and
provide people opportunity to work. As a brand is focused on clothing it directly influenced
consumers by celebrities and social media and get attracted what their favorite celebrity star
promotes. Social media promotion is very important. The buying nature of consumer is dynamic
and latest trend also affects the buying attitude of consumers.
Technological:
The technologies has changed the game in this new era. Most of the consumers are not
interested to visit physical stores and prefer shopping through their mobile applications or
websites. Using of technologies provides ease to customers for ordering their products from their
home, work place or any other localities. In the context of H&M, they are focused on updating
their technology with latest trend and advancements and according to their consumers changing
behavior (Brugar, K. A., 2019). By offering reward points, discounts impact a nice with strategy
which mixes with technology to build the customer base. Also, helpful to maintain the
relationship with logistic partners with modernize technologies of logistics.
Legal:
Each and every country has their own rules and regulations. Companies operating their
function in those countries have to follow their rules to be magnificently able to function their
business. It can be understood by an example such as Franchise of H&M in UAE, Oman and
many more have to follow their local amendments and regularities. It is a major concern of
intellectual property rights. If an innovative design is not legally secured then it can be taken by
their competitions.
Environmental:
H&M comes in retailing industry which involves textile industries as a whole which generates
most of the pollution after oil or petroleum industry. The huge amount of wastage of water can
generates polluted water bodies and population living nearby may suffer several deadly illnesses.
Along with this air gets polluted by the manufacturing companies of clothes. There is an
establishment of government rules and regulations to evade this kind of damage. H&M is
focused on sustainable fashion and has an aim to use recyclable materials in their manufacturing
process.
SWOT Analysis:-
Strengths Weaknesses
 The brand is highly concentrated with
having a broad range of products not
only with clothes but also with shoes,
cosmetics, blankets, candles, decor
pieces and many more.
 H&M is very popular brand and has
the image throughout the world.
 The brand has a controversy and
having functions with ethics and
principles.
 H&M supports outsourcing for their
production process.
Opportunities Threats
 As H&M is already providing a great
range of products but with a little
efforts it will create opportunitie that
can be beneficial for their presence in
the market.
 When customers shop online have
varieties of options on their mobile
applications or websites with other
similar brands.
 Covid-19 pandemic and lockdown

 H&M is widely spread their stores in
the world which will be beneficial for
their profits and revenues with the
same it will enhance their sales as
well.
phase is highly impacted with the
movement of products and services
which will be a threat of an economic
recession.
Primary Research
It's a technique for gathering firsthand data and then gathering information.
Questionnaires, interviews, and other primary data collection techniques are examples of primary
data collection tools. A questionnaire was issued to 10 employees through the internet for this
report. It is beneficial to be aware of H&M fashion trends.
Questionnaire
Q1. Do you think it is important to know about current trends? Frequency
Yes 9
No 1
Yes No
0
1
2
3
4
5
6
7
8
9
Frequency
Frequency
Interpretation: It can be seen that 9 out of 10 employees say it is vital to follow the trends. Only
1 out of 10 does not believe in following the trend.

Q2. As per you what are the current trends that impact H&M? Frequency
Sustainable Fashion 5
Online business 2
COVID 19 pandemic 3
Sustainable
Fashion Online business COVID 19
pandemic
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Frequency
Frequency
Interpretation: From the above graph it can be analyzed that in current time 5 out of 10
employees of H&M say that sustainable fashion is in trend. The 2 out of 10 employees believe
that online business is in trend. The rest 3 say that COVID 19 is taking the trend.

.
Q3. Is there any negative impact of COVID 19 of the performances of
H&M?
Frequency
Yes 6
No 4
Yes No
0
1
2
3
4
5
6
Frequency
Frequency
Interpretation: From the graph it can be analyzed that there is negative impact of COVID 19
on performance of H&M as per 6 out of 10 employees. The rest 4 out of 10 said that there is no
negative impact on the performances. .

Q4. What does you this is the reason for choosing sustainable fashion by
H&M?
Frequency
To follow trend 5
To save environment 5
To attract the customers 0
To follow trend To save
environment To attract the
customers
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Frequency
Frequency
Interpretation: As per the graph it can be said that 5 out of 10employees say sustainable fashion
is in trend and that is the reason H&M follows the concept. The rest 5 employees said it helps to
save environment.

Q5. What is the impact of online marketing on H&M? Frequency
Enhances performance 8
Reduces Performance 1
Neutral 1
Enhances
performance Reduces
Performance Neutral
0
1
2
3
4
5
6
7
8
Frequency
Frequency
Interpretation: In relation to the graph it is seen that online marketing enhances performances
of employees as per 8 out of 10 employees. 1 out of 10 says that it reduces the performances. 1
said that the impact is neutral.
Recommendations.
Recommendations and suggestions for H&M for faster growth, more dynamic and
efficient supply chain by following certain. The company should adopt the clear policy and
implement towards the respect of human rights. For this the company can take advantage or
support from foreign governments to enhance their products and services. For better supply chain
and manufacturing process a professional team or expert must visit the factory floor in every
three months. Visiting factory or manufacturing area can be considered as a surprise visit and a
critical analysis to assessing, monitoring, managing and controlling the selected factors to labor
conditions. To make supply chain effective it requires huge investment in automated warehouses
and proximity sourcing. For this Bangladesh government can support in laws enforcement but
they doesn't have enough budgets to make investment (Wang, C., Ma, Y. and Wu, F., 2020). The
respective company should make the essential investment so that employees over there feel safe
and secure. Along with this labor and employees over there are satisfied and protected then it
will impact positively on productivity which eventually results in maximizes profit for H&M
(Krebs, D. and Zvi, G., 2020). The respective company need to understand that the market is
surfacing and powering the association with their old the school supplies will not work. They
must think to change it quickly in their process of supply chain and use the competencies for
their internal design team and for that network of offline stores that develops bio-network take
on the fresh breed of online competitors who are the game players of fast fashion to ultra-fast

fashion. Most of the fashion sites have worked hard on usage over the past decades and it has
been studied that many sites provide an excellent service to users on their mobile phones or
desktop. So the H&M should be more focus on their few areas that need some improvement and
to meet the competitiveness through online services it is necessary to match the level with
competitions for user experience. H&M mostly target under 25 who are heavily addicted with
their mobile phones. It has been studied that H&M has been slow down with its adoption
towards multi-channel strategy (Lawrence, K. A., 2019). Appealing to customers to get advanced
with their mobile phones so they can conveniently shop there varieties of products online. As
mobile applications are a key essential of marketing which makes user or shoppers to identify
there sizes, color, choices of their desired items that can be added to their favorite list.
CONCLUSION
From the above report it has been concluded that H&M has significantly managed to
develop and grow in their online as well as offline stores over the past decades but along with
this many online retailers came across which have many online consumers to shop with their
websites. H&M joins late to e-commerce business they are lack with their strategies and make
mistakes in terms of experiences of users and has not yet succeed to get the achievement with its
online potentiality.

REFERENCES
Books and Journals:
Bevins, S., Price, G. and Booth, J., 2019. The I files, the truth is out there: science teachers’
constructs of inquiry. International journal of science education, 41(4), pp.533-545.
Brugar, K. A., 2019. Inquiry By the Book: Using Children’s Nonfiction as Mentor Texts for
Inquiry. The Social Studies, 110(4), pp.155-160.
Henrikson, R., 2019. Using Online Lectures to Promote Engagement: Recognising the Self-
Directed Learner as Critical for Practical Inquiry. Journal of Open, Flexible and
Distance Learning, 23(1), pp.17-32.
Krebs, D. and Zvi, G., 2020. The genius hour guidebook: Fostering passion, wonder, and inquiry
in the classroom. CRC Press.
Lawrence, K. A., 2019. Teachers’ Reported Digital Tool Use within an Inquiry-Based, Problem-
Centered Middle School Mathematics Curriculum. Michigan State University.
Norton, M. L., 2020. A Narrative Inquiry into Design-Based Learning Experiences, Transversal
Skills, and Flourishing as Your Best-Loved Self (Doctoral dissertation).
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Pendekatan Open-Ended pada Kompetensi Dasar Menganalisis Gaya-gaya Batang
Konstruksi Rangka Sederhana. Jurnal Kajian Pendidikan Teknik Bangunan, 5(1).
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cognitive style. In Journal of Physics: Conference Series (Vol. 1747, No. 1, p. 012010).
IOP Publishing.
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