Monday, October 28, 2013

H&M: How the Brand Operates and What the Public Thinks

When I first heard about H&M—full name Hennes & Mauritz, it must have been 2002 or 2003 and I was a high school sophomore or junior. What I knew about the brand, based solely on face-to-face interactions with friends, was that it was a highly stylish and cutting edge European fashion store with low prices that even a student like myself could afford. I visited for the first time and I was hooked: the store was covered wall-to-wall with brightly colored yet neatly arranged clothing items that were anything but mainstream; they were fashion-forward, unique and even risky. They used European sizing; so chic. Most of what I brought into the fitting room looked on the hanger like it could end up being absolutely atrocious or positively fierce. It was an adventure every time. In my opinion, much of this is still true, while some of it may not be. Today, I am going to begin an in-depth communications study of how H&M operates, because, well, I like the brand; they offer trendy items at reasonable prices, and for the most part, I’ve “bought” into it. My study will begin with a look at H&M’s history as well as the current state of business and will go into more in depth evaluation in subsequent entries.
Here I am, at the ripe age of 19, sporting my thrifty H&M top.
The mission of H&M states: “Conscious: Our vision is that all business operations shall be run in a way that is economically, socially and environmentally sustainable,” according to their website.  Sustainability is quite a popular concept of the 21st century, and I would venture to say that this statement taken on its own is a responsible perspective for a large, global corporation. As a member of the public, I can also vouch from my experience that I have noticed the use of recycled bags and materials in some of the clothing offered at H&M. This is a brave choice in the fashion world, but I think it extends to who their target audience might be—I will go out on a limb and guess stylish and socially conscious millennials. These consumers know the clothing will get them noticed, but they also know that it’s not pricy couture. Regardless, they know they can purchase items from this group and give back at the same time. H&M even began the Conscious Foundation for their 60th anniversary in 2007. This socially aware focus also could very well be a conscious decision based on negative impressions of the brand...but, more on that later.
Photo via hm.com
I would be remiss if I did not mention that there is at least mention of my favorite aspect of the brand in their online presence. In the "About" section, it reads:"Fashion and Quality at the best price." H&M’s website does not clearly define the history of the brand, but thankfully, Wikipedia has kindly obliged and given us a snapshot of what we need to know. H&M is a “Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children,” the source says. The company has spread to 43 countries and is the second largest clothing retailer, according to Wikipedia (ZARA is the first and GAP, Inc. is the third). According to their website, H&M employs “around 104,000 employees.”
Today's view of www.hm.com
It is important to note that, according to the Wikipedia page, multiple incidents have been reported from union and labor groups about workers in international factories getting ill due to work conditions, about low minimum wage and also safety regulation violations. This obviously does not jive with the socially responsible image that is portrayed through the brand’s marketing channels.  Regardless of these possible labor issues (which I was not aware of until I began my research), I think the general American public has a positive view of the company. But, that’s the funny thing about the digital revolution; all of these reports took place in 2011 and 2013. If these had taken place before “Web 2.0” existed, it may have been much easier for the company to maintain a one-way communication stream and control the message. According to Digital Strategies for Powerful Corporate Communications, Paul Argenti and Courtney Barnes explain the “difference between Web 1.0 and Web 2.0—observation versus participation, static versus dynamic, monologue versus conversation.” With a site like Wikipedia, independent collaborators—or as Argenti and Barnes would say, “citizen journalists”—can contribute information that would not have been previously available and even include links to their informational sources so others can fact-check.
The question is: What has H&M done or what will they do to combat this potential stain to their reputation? I think we already know part of the answer to that (hint: it’s in the messaging).

In addition to some of the ideas brought up today, I will also be exploring how H&M did not launch their online store in the United States until August 1, 2013 next time. Until then, keep your thinking caps on, readers.