The Whole Package
A global fashion brand pairs sustainability and growth..
The fashion industry exploded over the past two decades. Garment production has doubled since 2000, and plastics use has multiplied along with it. H&M, one of the largest apparel manufacturers in the world, wanted to grow more sustainably. One of its goals: eliminate plastic from its packaging. Together we developed a new paper packaging system that’s cutting thousands of tons of plastic from H&M’s operations, helping the company and its customers meet their sustainability goals.
plastic-free packages shipped in 2022
Of plastic eliminated from h&m operations.
Packaging accounts for 26% of plastics produced globally every year.
Fashion e-commerce is estimated to grow by 10% annually through 2024, requiring even more packaging.
Fast fashion keeps getting faster. But if the industry is to meet its climate commitments, its use of plastics has to slow down.
H&M chief executive Helena Helmersson set ambitious sustainability goals when she stepped into her role. She wanted to reduce the fashion giant’s impact on the environment and enable meaningful growth. But change is tough for any company, let alone one with eight brands operating across 74 markets. Together IDEO and the H&M Group created new plastic-free packaging, rallying around a more sustainable packaging solution that’s easily customizable.
By applying a design-led approach that went far beyond hiring a sustainability consultant, the H&M Group managed to reduce its use of plastic. But it didn’t stop there. A small team called Design Studio took what it learned and grew into an established strategic capability that pioneers new ways of working in the organization, tackling complex challenges in circularity, inclusion, supply chain, and customer experience. Sustainability isn’t a passing trend for H&M. It’s moving fashion forward.
“Sustainable packaging was our first beacon project for using a design-led approach to deliver on big shifts as a company. Today we’ve built a design capability tackling challenges in key strategic areas while unleashing human-centered ways of working across our organization.”
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You are in: Home » Research Articles » Research Articles » Case Study: How H&M is changing from global to local… sustainably
Case Study: How H&M is changing from global to local… sustainably
By chloe rigby.
Shoppers can recycle clothes at H&M’s UK stores
In recent years, H&M has transformed the way it does business. It’s gone from being a one-size-fits-all global giant, to a retailer that still sells around the world, but does so with a more finely tuned local strategy. The fashion to homewares retailer, ranked Leading in RXUK Top500 research, is integrating its online services into its physical stores and is putting customers in charge with a mobile app that helps them connect with online or their local shop – which ever is better for them.
Shoppers can now collect and return their online orders at more and more stores as H&M rolls out this strategy. They can also turn on ‘in-store mode’ to search their local store for the products they want to buy, even from a distance, using text search and visual search. When customers are already in the shop, they can scan clothes tags for more information. They can find out whether sizes and colours are available in the store or online, what the item is made of, how to look after it and how to style it. Customers who sign up to become H&M members can opt for free delivery, collection and access to different ways of paying as the retailer meets shopper demands while, at the same time, getting to know its customers better.
“Our ongoing transformation work to meet customers’ ever-increasing expectations is bearing fruit,” said H&M chief executive Karl Johan Persson in the company’s financial statement for the first nine months of its 2018/19 financial year. He added, “Looking ahead, we remain humble considering the challenges brought by the rapid shift in fashion retail. Our transformation work is therefore continuing at a fast pace in all parts of the company.”
At the same time, H&M is testing new and innovative ideas, with a fresh emphasis on sustainability. Shoppers at its new Stockholm store, for example, can now rent skirts and dresses from its Conscious Exclusive collections. The store is designed to be more inspirational, displaying images shoppers have shared of how they wear H&M products. But it’s also convenient, with payment available through self-service checkouts. In the Netherlands, H&M is testing a bicycle delivery option that’s particularly relevant to that market. In the UK, shoppers can recycle clothes at any H&M store, receiving a £5 voucher in exchange for each bag.
H&M’s strategy is about getting closer and more convenient for its customers. The figures suggest that it seems to be working. Online sales grew by 30% in the first nine months of its 2018/19 year, and overall sales by 12%, while pre-tax profits after one-off costs were 25% ahead, compared to the same time in the previous year.
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