Friday, 21 November 2008

Emma Sjostrom(2008)”H&M and Organic Cotton”




This is a Case about H&M, Hennes and Mauritz, one of the most famous Swedish companies. In this case, author focuses the challenge of introducing organic cotton products of H&M, such as lead time, marketing, and purchaicing.

H&M’s business concept is “to offer fashions and quality at the best price”. It originated from women’s clothes shop “Hennes”(means “hers”)in 1947, and acquired “Mauritz Widforss” in 1968. It expanded 29 countries through overcoming scandals.

About organic cotton, it started in the 1990s, but it failed because it did not live up to its fashion standard. But in 2004, it was ready to new try with new designer, Stella McCartney. And this attempt succeeded.

To achieve this, H&M had to change many things. For example, manager’s motivation for organic production, certified system, efficient logistics, and so on. It was done by commitments of each department because H&M adapts like SBU system.

For future, CEO thinking three things: long-term line of organic, promotion of organic purchase, and minimizing transportation.

long-term line of organic:
partnership of other organization for changing production sustainably
promotion of organic purchase:
use sustainable activity for advertisement
minimizing transportation:
make or use network other organic production organization

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