This document summarizes the history and operations of clothing retailer H&M. It discusses how H&M was founded in Sweden in 1947 and opened its first US store in 2000. H&M now has around 2,000 stores worldwide and employs about 74,000 people. The document then outlines H&M's strategy to ensure quality, sustainability and low prices. However, it notes that a problem arose when some of H&M's organic cotton was found to contain genetically modified cotton, violating their sustainability claims.

1. Sarah Kristiana Arman Jackie Schulyer

2. Established: Who: ErlingPersson When: 1947 Where: Vasteras, Sweden Beginning of H&M http://blogs.iscom.org/hmblog/files/2009/05/0102022004400.jpg

3. First store in the U.S Opened in 2000 Located on Fifth Avenue in Manhattan, New York 189 stores in the U.S. H&M in the U.S http://www.coutureinthecity.com/wp-content/uploads/2009/11/jimmy_choo_vip_shopping_event_nyc_nov_13_024.jpg

4. Around 2,000 stores worldwide Around 70 suppliers About 74,000 people employed About 20 production offices around the world H&M facts

5. Offer fashion and quality at the best price Produce fashion for women, men, teenagers and children Offer clothes, cosmetics, accessories and footwear Promote sustainability strategy H&M Platform

6. Enforce product policy Strive to use sustainable materials Have routine testing for quality assurance Shrinkage/ color fading Pilling Flammability Chemicals Platform Continued

7. Ensure the best price by: having few middlemen buying large volumes having a broad, in-depth knowledge of design, fashion and textiles buying the right products from the right market being cost-conscious at every stage having efficient distribution Achieving Cost Strategy

8. Run in an economically, socially and environmentally sustainable way Minimize negative impacts on the environment Manufacture goods under satisfactory working conditions CSR Strategy Vice President, CSR Strategy

9. Increase number of stores by 10-15% Boost sales in existing stores Increase use of sustainable materials (organic cotton) The Future of H&M

10. 65% of organic cotton comes from India 30% of organic cotton sample tested contained GM cotton 100% Organic? Google Image PROBLEM!

11. H&M Organic Exchange APEDA EcoCert Control Union Key Players http://www.livincool.com/wp-content/uploads/2009/03/730px-hm-logosvg.png http://www.thomex.com/images/apeda.gif http://easywaystogogreen.com/wp-content/uploads/2008/04/organicexchangelogo.jpg http://embalagemsustentavel.files.wordpress.com/2008/08/logo_ecocert_op_600x600.jpg http://zemeorganics.com/yahoo_site_admin/assets/images/GOTS_CU_logo1.211121548_std.jpg

12. Mixed up in storage Erosion of seeds during farming Produce different types of cotton in one area Contamination

13. Who is at Fault? Marketing? SUPPLY CHAIN! Supply Chain? Suppliers?

14. No manufacturing of clothes Rely on 700 suppliers in Asia & Europe Suppliers sign Code of Conduct Regular checks on suppliers by 60 Auditors Product Certification by Control Union Unique Supply Chain

15. Farming Request from headquarters Supply Chain Suppliers & Manufacturing Retailers Certification H&M Warehouse

16. Code of Conduct

17. Control Union certification fraud Lack of product testing Auditing procedures Where problem occurred

18. Destroyed unsold clothes prior to cotton scandal Committed ethical problem, but created business solution Tarnished Reputation

19. Public mostly unaware Industry insiders and Eco-friendly consumers most critical Post-Scandal Status

20. Stock risen 175 SEK over past year Economic Impact

21. Recalled 967,000 toys with lead paint Experienced 17th recall in last 10 years Ranked No. 1 in Fortune’s dumbest moments in 2007 Had 11% lead where Fed. Law allows .06% Mattel’s Industry Impact

22. Increase control over supply-chain Implement random testing Apologize to Indian cotton manufacturers and environment sustainability supporters Be up front; Provide link to scandal on homepage Improve brand perception ie: Garden Collection Recommendations