H&M

Summary

Sweden-based H&M Group is a global fashion and design company with over 4,000 stores in more than 70 markets and online sales in 60 markets. All its brands and business ventures share the same passion for making stylish sustainable available to everyone. Each brand has its own unique identity, and together they complement each other and strengthen H&M Group – all to offer customers unbeatable value and to enable a more circular lifestyle. The company was originally founded by Erling Persson and its current CEO is Helena Helmersson.

Founded in 1947, H&M Group is a global design company with 4,702 stores in 76 markets and 56 online markets. At H&M Group, the team believes in making great design available to everyone. And its family of brands and business ventures offer customers around the world a wealth of fashion, beauty, accessories and homeware, as well as modern menus with fresh and local produce at some of the brands’ in-store eateries.

But design is so much more than just products; it’s about clever design processes, efficient product flows, creating experiences that enrich, and smart solutions that benefit all their customers. Sustainability is at the core of the business and the team will continue to push for change and lead the way towards a more inclusive and sustainable fashion future.

H&M origin

H&M, originally known as Hennes & Mauritz, was founded in 1947 in Västerås, Sweden, by entrepreneur Erling Persson. The idea for the store came to Persson after a visit to the United States, where he observed the rapid growth of affordable and ready-to-wear fashion outlets. Inspired by the American retail model, Persson aimed to create a similar experience in Europe, emphasizing quality clothing at reasonable prices. The first store, called “Hennes,” which means “Hers” in Swedish, exclusively sold women’s clothing. This initial venture was well-received, and the brand quickly gained a reputation for offering stylish, accessible fashion to the everyday consumer.

In 1968, Hennes acquired the hunting and outdoor equipment retailer Mauritz Widforss, which led to the brand’s expansion into menswear and the rebranding to Hennes & Mauritz (H&M). This acquisition marked a pivotal moment in the company’s growth, positioning it as a comprehensive fashion retailer for both men and women. Over the subsequent decades, H&M expanded its presence beyond Sweden and eventually established itself as a global fashion powerhouse. By maintaining a focus on affordability, trend-driven collections, and sustainable practices, H&M has continued to evolve while staying true to Erling Persson’s original vision of democratising fashion for the masses.

What does H&M stand for?

H&M stands for “Hennes & Mauritz,”. Initially starting as a women’s clothing store called “Hennes” in 1947, the brand expanded its offerings to include menswear after acquiring Mauritz Widforss in 1968. Today, H&M is recognized globally for providing trend-driven, stylish clothing and accessories for men, women, and children at competitive prices, while also integrating sustainable practices into its business model to promote eco-friendly fashion.

H&M Owner

The owner of H&M is Stefan Persson, who is the son of the company’s founder, Erling Persson. Stefan Persson served as the chairman of H&M for many years, playing a crucial role in the company’s global expansion and strategic direction. Before taking over leadership at H&M, Stefan was involved in understanding and developing the company’s international presence and operations. He continues to realise his father’s vision of making fashion affordable and accessible while implementing modern business strategies that help in transforming H&M into a global fashion leader.

When was H&M founded?

H&M was founded in 1947.

History

The Swedish fashion brand has an interesting history. The international growth trajectory began taking shape in the late Sixties. Norway came first, followed by Denmark, U.K. and Switzerland.In 1973 Hennes & Mauritz began retailing underwear. And the growth pace increased even further.. with five or six new stores opening every year. In 1974 Hennes & Mauritz was listed on the Stockholm Stock Exchange. The same year, the stores were rebranded with the abbreviation H&M. In the late Seventies, modern teenagers get their own version of H&M as the Impuls concept was launched, inspired by U.S. denim stores.

In the Eighties, the foundation was laid for global expansion. New openings included the first H&M stores in Germany and Netherlands. Long before the term e-commerce was even born, sale of H&M fashion move into the customer’s homes through the acquisition of Swedish mail order company Rowells in 1980. In 1982 – 35 years after the company welcomed its second-CEO- Stefan Persson.

In the Nineties traditional newspaper advertising was largely replaced by billboards and the famous annual Christmas underwear campaigns were launched in 1990 featuring supermodel Elle Macpherson. Throughout the Nineties models from The Big Six – Elle Macpherson, Cindy Crawford, Naomi Campbell, Claudia Schiffer, Christy Turlington and Linda Evangelista – were hired in H&M’s campaigns. It was the mark of a truly International fashion brand.

In 1998 H&M began offering online shopping and the expansion of H&M in Europe continued on a rapid scale. By the end of the decade there were H&M stores in several European countries including France, where the first H&M store opened 1998 in Paris In 2000, a major H&M flagship store opened on Fifth Avenue in New York. The opening of the first store in the U.S. marked the start of the expansion outside Europe.

H&M and Karl Lagerfeld took the world of fashion by surprise in 2004, teaming up to show that design isn’t a question of price. Per WWD: “The chance to buy $49 blouses and $129 sequinned tuxedo jackets from one of the most famous designers on the planet not only unleashed retail pandemonium — it had a seismic effect on the entire fashion system: breaking down barriers between luxury and mass; democratising design in a new way, and foreshadowing an era of rampant collaborations, drops and pop-up concepts.” Since this first designer collaboration fashion giants like Versace, Roberto Cavalli, Alexander Wang and Stella McCartney were invited to make their design accessible to fashion fans globally.

H&M then travelled far east, opening its first stores in Shanghai and Hong Kong in 2007. Acquisitions were key to growth. Weekday, Monki and Cheap Monday were welcomed to the H&M group through the purchase of FaBric Scandinavien AB. In 2000 Rolf Eriksen was appointed CEO following which Karl-Johan Persson took over the reins in 2009.

Circa February 2013 H&M began offering patrons a voucher in exchange for used garments. Donated garments were to be processed by I:CO, a retailer that repurposes and recycles used clothing with the goal of creating a zero waste economy. In April 2014 H&M teamed with Canopy, a nonprofit, to remove endangered and ancient forests from their dissolvable pulp supply chain for their viscose and rayon fabrics.

The H&M Foundation, a nonprofit, was established in 2014 to fund projects that improve humanitarian and environmental issues within the fashion industry. The Persson family, the founders and owners of H&M, reportedly invested $180 million in the foundation. One of the foundation’s projects includes the Green Machine, a recycling technology that would allow clothing to be recycled in a similar way to aluminum can recycling. In August 2015, the H&M Foundation announced that it will award the Global Change Award- a million-euro annual prize- to advance recycling technology and techniques within the fashion industry. In 2021, H&M Foundation launched a virtual clothing collection named “The Billion Dollar Collection” that featured ten sustainable fashion innovation startups.

In 2022 H&M Group introduced the latest climate targets to reduce absolute greenhouse gas emissions across the value chain by 56 per cent by 2030, and by 90 per cent by 2040, and in the same year achieve net-zero. And, the newest H&M sports brand ‘H&M Move’ was launched worldwide. Today, H&M Group is present in more than 75 markets worldwide, of which almost 60 also offer online sales. And the reins is in the hands of Helena Helmersson: the first woman to pilot one of the four largest fashion groups in the world.

Today H&M operates in over seventy-five countries with thousands of stores, giving it a significant international presence. As one of the pioneers of fast fashion, it has built a broad customer base by offering trend-driven, affordable apparel accessible to a diverse spectrum of shoppers. the widespread popularity is bolstered by its ability to quickly adapt to local fashion tastes, making it appealing to fashion-conscious customers around the world. H&M’s ability to cater to different styles and preferences globally, coupled with its strong e-commerce presence, has helped the fashion brand maintain a diverse and extensive customer base.

Per WWD: ‘H&M is getting increasingly inventive, consumer-centric, and less “cookie-cutter” in its store rollout. The Stockholm-based fashion specialty retailer is applying technologies to improve the customer experience, localising assortments and testing some new concepts and services, while continuing to increase its store count. Much of the investment is happening in New York City.’

Vision

Fashion brand H&M’s vision is rooted in the belief that fashion should be accessible to everyone, a philosophy the brand has upheld since its inception in 1947. From the very beginning, H&M aimed to democratize fashion, making stylish, quality apparel an accessories available at affordable prices. By offering a wide range of on-trend products, H&M broke down the barriers between high fashion and everyday consumers, ensuring that the joy of personal expression through fashion was no longer limited to the elite. This mission of inclusivity has been central to the fashion brand’s identity, allowing people from all walks of life to enjoy the transformative power of fashion.

In recent years, H&M has expanded its vision to encompass a commitment to sustainability, recognizing the importance of addressing environmental challenges within the fashion industry. The brand has set ambitious goals to support a circular fashion economy, where products are designed, produced, and disposed of in ways that minimize environmental harm. A key part of this strategy is H&M’s goal to achieve net-zero climate impact across its entire value chain by 2040. This means reducing emissions throughout its production processes, from sourcing materials to manufacturing and transportation, while also addressing the environmental footprint of its stores and online operations.

H&M also envisions having a net-positive impact on biodiversity by operating within planetary boundaries and embracing circular models and systems. This involves creating clothing that can be reused, recycled, or repurposed, thus reducing waste and extending the lifespan of its products. H&M aims to scale circular supply chains, focusing on more sustainable materials, renewable energy sources, and eco-friendly packaging. Additionally, the company seeks to guide its customers on a more sustainable fashion journey by promoting responsible consumption practices and making it easier for shoppers to recycle or return used garments. Through this vision, H&M strives not only to democratize fashion but also to reshape the industry into one that contributes positively to the planet.

Mission

H&M’s mission is that people aspire to enjoy fashion and the retailer hence must be dedicated to making fashion accessible for all. Their sustainability efforts provide them with opportunities to foster innovation and enhance their customer offerings, ensuring they continually meet and exceed customer expectations. To seize these opportunities, H&M consistently challenges itself, scrutinises long term goals and seeks fresh approaches to conducting business that disentangles their growth from the consumption of finite natural resources. They make strategic investments in new materials, technology, and business models to lead transformative changes in their product creation and recycling processes, as well as in how their customers engage with fashion and design.

The brand’s commitment extends to every facet of their operations including resource usage, reuse practices, working relationships with people, and the standards they set for their suppliers, all of which contribute to the social and environmental narrative of their products. H&M’s goal is to empower their customers to comprehend and participate in this narrative, enabling them to make informed choices and perceive sustainable options as the most appealing and attractive ones. As the fashion industry redefines itself and evolves, H&M is also in a constant state of transformation. They have dedicated over two decades to enhancing the sustainability of their business, continually refining and adapting their strategies to address emerging challenges and incorporate new insights. Their commitment to ongoing learning, investment and action is resolute.

Products and Services

H&M offers a diverse product portfolio that caters to the fashion needs of men, women, and children. The fashion brand’s products include casual wear, formal attire, sportswear, underwear, and fashion accessories. H&M has built a reputation for delivering fashionable apparel at affordable prices, ensuring that customers from all walks of life can find stylish options that suit their preferences and budgets. Additionally, the brand also sells footwear, cosmetics, and home textiles, further broadening its appeal and offering customers a one-stop-shop for both fashion and lifestyle products.

Alongside its core H&M brand, the company operates several other successful brands that target different market segments and styles. These include COS, known for minimalist and contemporary designs; Monki, which blends Scandinavian style with street fashion influences; Weekday, offering modern and edgy pieces with a youthful vibe; and & Other Stories, which focuses on premium-quality fashion with a strong emphasis on storytelling and creative expression. Each of these brands caters to distinct fashion sensibilities, allowing H&M to reach a wider audience and provide a broader variety of fashion choices.

In addition to clothing and fashion accessories, H&M has also expanded into home textiles through its H&M Home brand, which offers stylish and affordable home décor and furnishings. H&M Home provides everything from bedding and bathroom essentials to decorative items, aligning with the brand’s ethos of making fashion and design accessible. Other ventures include ARKET, which promotes sustainable living with a focus on timeless, well-made products, and Cheap Monday, known for its trendy, affordable denim and youth-oriented fashion.

Through this wide array of brands and product offerings, H&M caters to a broad spectrum of customers while maintaining its commitment to affordability, inclusivity, and sustainability.

Key Team

Karl-Johan Persson (Chair)
Stina Bergfors (Board Member)
Anders Dahlvig (Board Member)
Lena Patriksson Keller (Board Member)
Christian Sievert (Board Member)
Niklas Zennström (Board Member)
Danica Kragic Jensfelt (Board Member)

References

• Official website H&M
• Eco-friendly holiday collection Vogue
• Brand history H&M
• Helena Helmersson: the new CEO of H&M the mds
• Sustainability Disclosure 2022 H&M
• H&M Mugler Show Vogue
• LinkedIn account of H&M LinkedIn
• Swingy Sexy Rabanne H&M Collaboration Vogue
• Twitter account of H&M Twitter
• Sabyasachi-H&M collection Forbes
• Facebook account of H&M Facebook
• H&M: The Secret to Its Success Investopedia
• Instagram account of H&M Instagram
• H&M Explores The Fluidity Of Fashion In The Physical And Digital World Elle
• Corporate Governance H&M
• Top Five Largest Fashion Retailers in the World Tharawat
• Second-hand style rolling out across H&M Group H&M
• Company snapshot Forbes
• Investors H&M
• Wikipedia page of H&M Wikipedia