SBU 240-45 International Business- [Spring 2022]

To: Professor Marshall

From: Kelly Steiner

Date: February 18, 2022

RE: H&M

H&M is a multinational clothing retailer that originally started as a Swedish women’s

clothier in 1947. H&M has markets in 54 countries and 10 online markets today. This fashion
forward retailer has used celebrities to help advertise for them worldwide and is now “the
second-largest clothing retailer in the world” (Hill & Hult p.418). The company does not own
any of its factories and chooses to work with independent suppliers to create their designs (Hill
& Hult p.418).

I think that the reasons that H&M are not covering more countries in the world could be
because they do have the production control of their factories since they do not own them
directly. This would pose a problem with supply chains for all their different brands and getting
the right market in each country, as well as meeting the demands for product. There could also
be several countries where men and women are expected to dress a certain way whether due to
religion, culture, or ethnicity and would not accept the modern clothing retailer and their brands.

Since they do not own their factories and have suppliers mostly in Europe and Asia, this
could also make it difficult for H&M to ensure the quality the customers receive and expect in
their product. Therefore, they have a team of people that audit each factory supplier’s location to
ensure that all working conditions and requirements are met (Hill & Hult p.418).

It is H&M’s responsibility to ensure that the working conditions and environmental

impact are monitored and constantly improving in their share of the market. They want to
maintain affordability and sustainability and quality while leaving the least amount of an
environmental footprint in the world as they can (Hill & Hult p. 418).
 I think H&M is a socially and environmentally responsible company. They want to stay
on top of everything in manufacturing and their people to ensure great products, reputation,
future for the environment, and the employee well-being.
Work Cited

Hill & Hult (2018). Global Business Today, Global Production and Supply Chain Management
(10e), p. 418