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Hennes & Mauritz (H&M): High Cost of Fast Fashion

Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Case Code: OPER146
Case Length: 11 Pages
Period: 2019-2020
Pub Date: 2020
Teaching Note: Available
Price: Rs.400
Organization : Hennes & Mauritz
Industry :Retailing
Countries : Sweden
Themes: Supply Chain Management/ Inventory Management/ Logistics & Supply Chain/Supply Chain Transformation
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In April 2018, the world’s second-largest fashion company, Sweden’s Hennes & Mauritz (H&M), reported that it had about US$ 4.3 billion (about SEK 33.7 billion) of unsold goods for the year ending November 31, 2017. The company announced that sales had also risen by just 4% compared to the previous year. H&M’s CEO Karl-Johan Persson (Persson) said, “Sales in many of our physical H&M stores were weak, particularly in mature markets where customers’ new shopping behavior can be clearly seen in the form of declining traffic to stores and increased online shopping.” The company had been facing problems for several quarters. Its stock had dropped by 43.6% between April 2017 and February 2018..

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