In 2024, H&M – a household name in fast fashion – finds itself at a crossroads. As it faces challenges from online giants and a shifting consumer landscape H&M is making intriguing moves to stay relevant, the RetailX Global Fashion 2024 Report has found.
H&M has long recognised that consumers now expect a seamless blend of online and offline shopping experiences, so has prioritised online/in-store integration with features such as click-and-collect and easier returns.
Additionally, its refurbished Regent Street store in London features innovative elements such as fitting stations and customisation tables which blur the lines between physical and digital shopping experiences.
Changing consumer views about the impact of fashion have also seen the retailer rethinking where it fits in the fast fashion model. Fast fashion has come under fire for its environmental and ethical impact and H&M has moved to address these concerns by implementing a range of sustainability initiatives.
For example, the company has been incrementally increasing the use of recycled materials while investing in garment collection and recycling programmes as it aims for a more circular fashion model. This, it hopes, will cater to a growing segment of eco-conscious consumers who still value H&M’s affordability.
H&M’s vast global reach has also become a double-edged sword. In 2024, the retailer has adopted a more localised approach, closing under-performing stores and focussing on smaller concept stores tailored to specific demographics and neighbourhoods. These stores are set to stock more regionally-relevant items and offer curated experiences.
This shift is just part of H&M’s move towards experimenting with new business models and exploring innovative ways to connect with customers beyond traditional retail. The company’s investment arm, CO:LAB, fosters partnerships with second-hand clothing platforms including Sellpy. This taps into the growing trend of pre-loved fashion and allows H&M to cater to a wider range of budget-conscious shoppers.
Like many fashion retailers, H&M is focussing more on its ethics, striving for greater transparency by publishing information about its suppliers and factories. Additionally, it is working towards offering more ethical clothing lines produced with fair labour practices.
H&M’s willingness to adapt to changing consumer preferences, to embrace sustainability and to experiment with new models will be key to its future success. Whether or not it can navigate the competitive landscape and regain market share remains to be seen but its efforts so far to innovate and address consumer concerns make it a fascinating player to watch each year.
This company profile is just one of 11 in-depth company profiles featured in the RetailX Global Fashion Report 2024. Download the full report for a look at ASOS, Depop, Enjoei, GAP, Muji, Nike, Red Bubble, Target, Victoria’s Secret and Zozo Town.
This report discusses not only the style but the substance of this huge and fast-paced industry. The global fashion market is not just rebounding—it’s thriving.
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