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Marketing, PR and branding – final paper Done by: Sarah Lee Shan Yun  

 H&M: The global leader in

sustainable fast fashion

 

     

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Table of contents

Section Page

Title page 1

Table of contents 2

Introduction 3

Brand analysis 3

In-depth ad analysis: H&M’s Go Green Wear Blue: Conscious Denim campaign 5

Strategic and creative recommendation 9

Appendix 11

Bibliography 19

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Introduction

Erling Persson opened Hennes, a women’s clothing boutique, in Västerås, Sweden in

1947. It would become the second largest retailer in the world, netting more than 17 billion dollars

in sales revenue and 2.3 billion dollars in profits in the year 2013 (H&M, AR 2013). H&M has

since expanded to over 3,400 stores in 55 different markets, reaching consumers from Europe,

America to the Far East. In 2002, H&M released its first sustainability report, introducing its vision

to incorporate corporate social responsibility into several key parts of its business (H&M, CSR

2002). Today H&M has transformed this effort into a major component of the company’s mission.

Now known as “sustainability”, it has its own department, housed in the heart of H&M’s corporate

structure (see appendix A) with the goal of incorporating efficiency and ethics into every part of

the value chain. In 2010, H&M earned its position as the world’s largest consumer of organic

cotton (H&M Hist.) and in 2013, it launched its first Conscious collection featuring stylish apparel

made from organic cotton, Tencel and recycled polyester (Karmali).

In this essay an analysis of H&M will be drawn from a brand perspective using marketing

frameworks and ideas in order to gauge its success in creating shared value through purposeful

positioning. In the second part of this essay, an analysis on H&M’s Go Green Wear Blue

Conscious Denim campaign will be conducted, before moving on to a strategic and creative

recommendation to introduce sustainable cosmetics to its existing makeup line.

Brand analysis

The question to ‘who is H&M’s target audience?’ can easily be re-phrased to ‘who isn’t

H&M’s target audience?’ The clothing retailer has expanded so rapidly since its inception in the

1940s that it has reached a global audience of more than 68 countries in 5 major continents –

Europe, the Americas, the Asia Pacific, the Middle East and Africa (H&M, SM). Today its main

department targets ladies, but H&M also has lines that cater to men, kids, athletes (H&M sport)

as well as young adults (H&M divided). In addition, H&M has a denim line and lingerie line which

targets consumers shopping for garment-specific items, a move which effectively pits H&M

against some of the leading competitor brands such as Levi’s and Victoria’s Secret. With the

variety and breadth of its reach, H&M as a retailer has the power to influence the fashion system

in an enormous way. Yet it is only one of the many fast fashion brands in the market catering to

the infinite demand of consumer choice and hunger for new trends. Placed along side

heavyweights such as Zara, Topshop, Forever 21 and Uniqlo, H&M has to find a way to

differentiate and communicate unique value to its customers in an ever-growing market.

The fast fashion business model is built on streamlining the vertical marketing system,

which eliminates middlemen in the distribution channel by hiring in-house designers, sourcing

from cost-effective markets, purchasing merchandise in bulk and organizing efficient logistics

(H&M, BC). In addition, H&M’s online shopping service also cuts cost by getting the product to

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consumer via a direct channel from warehouse to doorstep. Sustainable innovation as a concept,

although commonly associated with fair work practices and recyclable materials, also involves the

improving the efficiency and effectiveness of the system in order to provide surplus to

manufacturers, consumers and other stakeholders.

H&M’s business concept does not hyper-target segmented groups of the population, but

rather, leverages consumer’s psychographic buying habits – individuals who shop frequently and

who want immediate, up-to-date fashion trends. For this reason, low-cost pricing strategies

encourage continuous consumption and frequent repurchase. This does, however, create huge

problems of overconsumption and waste creation, as customers buy and throw away more and

more textiles, leading to millions of tons of fabric in landfills and billions of tons of water waste

every year (Breyer). One solution that H&M has posed, in an effort to curb anxiety over the

inadequacies of the industry, was to incorporate a closed-loop production process into their entire

system. This means gathering unused garments via customer donations at all H&M stores,

sorting and recycling materials before manufacturing new garments and selling them to the

market in a closed production cycle (H&M, CAS 2013).

This innovative idea offers a creative solution to the problems of mass-production, but is

also disruptive to the industry, posing several questions on the validity of its approach. The first of

which, would be if the system benefits both the consumer and the producer. Shared value is

defined as policies and operating practices that enhance the competitiveness of a company while

simultaneously advancing the economic and social conditions in the communities in which it

operates (Porter). By capitalizing its efforts to go-green, H&M provides consumers with

sustainable choices without sacrificing style and accessibility of price (see appendix B). It’s

sustainable collection offers garments at prices ranging from $5 to $150, a price point that does

not differ much at all from its other products in its line, or that of competitors’. In this case, the

benefit to the consumer for being an eco-warrior outweighs the cost, providing them with a

convenient option. On top of that, the H&M brand benefits from educating consumers on its own

green efforts, creating unique value that differentiates them from other fast fashion brands. On

the other side of the production chain, manufacturers benefit from the reduced cost of fabric as

well as water, dyes, and other inputs needed to process virgin materials. This reduced cost leads

to greater margins that companies can use to provide workers with better wages and working

conditions (H&M, CAS), also an important component of H&M’s effort to create a sustainable

ecosystem (see appendix C).

By purposefully positioning its business, H&M’s business model not only provides a

product with the functional benefits of affordable clothing and the emotional benefits of shopping

for the latest style or trend, it also caters to more pressing, fundamental societal needs of

environmental and economic sustainability (De Swaan et al). The consumer, in a way, is called

upon as the hero that is empowered by the brand to make sustainable choices, to contribute to

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the cause through physically donating clothes as well as sharing the brand’s efforts through word-

of-mouth and social media (see appendix D). With its growing media presence and over 21

million followers on Facebook, the brand has promising capabilities in improving the landscape of

the fashion industry.

Unfortunately, even with the company taking great strides in this direction, over 84% of its

cotton garments are not made from organic cotton and 89% of all of its garments are not made

from recycled, organic or innovative materials (H&M, CAS 2013). With the way the industry is

structured and with most companies outsourcing manufacturing to factories in countries such as

Bangladesh, India, Cambodia and China, it is a challenge to coordinate with hundreds of

suppliers to achieve the entirety of the industry’s sustainability goals. H&M’s CEO Karl Johan

Persson does admit that it is going to take time and effort to see these goals through and that he

believes that it is possible for H&M to become the leader in sustainable fashion at great prices

(Givhan).

Instead of competing to be the lowest cost retailer in the market, H&M has found a way to

provide consumers with a different kind of value through an empowerment strategy characteristic

of the emerging paradigm of branding and marketing. By challenging the existing consumer belief

that one has to pay a premium price in order to make the right choice, H&M is becoming one of

the pioneers of ethical fast fashion, communicating the message that sustainability and rapidly

changing fashion can, indeed, co-exist if an effort is made to close the loop. For those reasons, I

would personally score the brand an 7 out of 10 on the previous versus emerging branding and

marketing paradigm spectrum.

In-depth ad analysis: H&M’s Go Green Wear Blue: Conscious Denim campaign

For this analysis, the focus will be on H&M’s video advertisement for its Go Green Wear

Blue conscious denim line, available on its YouTube channel (see appendix E) with references to

the campaign’s other media types including its print advertisements and social media marketing.

In this advertisement, the messages that surround being green and choosing more eco-

friendly fashion are both explicit and implicit. They persuade the viewer to look at fashion through

a different lens, to connect ideas of sustainable water use with stylish wearable clothing.

According to Simon Sinek in his talk How Great Leaders Inspire Action, “people don’t buy what

you do, they buy why you do it” (Sinek). The campaign aims to attach eco-conscious values to

H&M’s denim line, therefore inviting consumers to ‘vote with their dollar’ and invest in the Earth’s

resources by choosing the brand’s products. It leverages existing sentiment around

environmental wellbeing and water-saving efforts in individual households, thereby providing an

alternative course of action for individuals to contribute by ‘saving water’. It also communicates

the question: can fashion really be sustainable, fashionable, comfortable and accessible all at the

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same time? These ideas are laid out collectively as well as individually as the viewer is taken on a

journey through the video.

The actual placement of the H&M brand is subtle with the company’s logo featured at the

end of the video. This keeps focus on the campaign’s main message, simulating the effect of a

public awareness campaign. Almost like a seal of approval, the company effectively

communicates its brand promise and unique value proposition to offer consumers better,

innovative products that provide solutions to real world problems. Although there exists consumer

sentiment around fast fashion as a mass-marketed, over-produced commodity, the campaign

does convince the audience of the possibilities for a universal product to be sustainably

manufactured and recycled, thereby adding value to H&M’s already recognizable brand name.

The campaign inspires consumers to act in a multitude of ways. First, by choosing to buy

H&M’s conscious denim, one is empowered to make a better choice as their dollar goes to better

production methods as well as to the financing of research and development methods that

improve the industry’s technologies. It also inspires individuals to get educated on the issue of

water-waste in industrial manufacturing, and prods them to research the subject either by visiting

H&M’s website or through third-party media. This is also an additional benefit to H&M as

viewership to their webpage and online store increases, expanding their media reach. H&M’s

sustainability blog has a downloadable resources page where customers, professional partners

and investors can access company’s information on sustainability goals and milestones (H&M,

SUS). By providing avenues for individuals to easily share this information with their peers, it

improves overall awareness on the subject, which may also increase consumer demand for

sustainable denim, therefore leading to more suppliers adopting such innovative technologies and

possibly the setting of sustainable industry standards.

How are other brands leveraging consumer demand for eco-denim? In 2008 the

company Dirtball was launched producing 100% eco-friendly 100% made-in-the-USA apparel,

with a kickstarter page financing over $40,000 for it’s “green jean” made from cotton and recycled

water bottles (see appendix H). In August 2014 G-star launched a special denim collection, RAW

for the oceans, which features collaborations with musician Pharrell Williams and eco-company

Bionic Yarn (NYDN). Levi’s CEO Chip Bergh, famously recommended customers not to wash

their jeans in an effort to prove the durability of denim and to solidify jeans as the “ultimate

sustainable apparel” (Prakesh). Levi’s also has a line of “waterless” denim, which minimizes

water use in its production process and encourages customers to skip jean washing post-

purchase (Ibid). To encourage the longevity of its products, Levis has promoted the craze for

“jeans freezing”, an alternative cleaning method that is said to kill bacteria on the garment.

Whether this is an effective method remains questionable, although it has undeniably sparked

consumer interest in the subject. H&M could have leveraged existing underlying associations with

water saving and denim in their Go Green Wear Blue campaign.

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Another great aspect of the campaign is its holistic design. The audience’s attention is

successfully captured with many subconscious visual associations. The blue graphic color is

present in almost all of the video’s frames and is used as a theme throughout the company’s

media marketing platforms (see appendix F). Ironically, this is not the first color that comes to

mind when one thinks of an eco-friendly hue, and the paradoxical tagline “Go Green Wear Blue”

is presented as an attention-grabbing contradiction. According to Milton Glaser, the legendary

graphic artist, the creation of a puzzle facilitates the activation of the problem-solving impulse of

the mind so that viewers are more engaged to solve the puzzle and act accordingly (Milton). The

color blue also brings about many subconscious connotations to natural elements such as the

ocean, the Earth, water and air, supported by cinematic pictures and aural effects of crashing

waves. The scene where the model emerges from the water, gasping for air (Appendix E, 0:22) is

also evocative of the idea of survival as an ambiguous suggestion is made to the breathability of

the Earth as well as the “breathability” of comfortable denim clothing. All these references are

strewn together with visuals of the garment’s texture in order to create a subconscious

categorization of the garment with nature. The ad thus leverages man’s fundamental instinctual

need to connect with his environment (Spirkin) in order to bring about feelings of splendor,

wonder and admiration for the brand.

The narrator in the ad also calls out to the warrior archetype in the consumer. “It shields

us, empowers us… so let’s respect it and let’s not waste it.” (Appendix E, from 0:26) As both the

protected child of Mother Nature and the native guardian of his own environment, the viewer is

engaged to participate and act by supporting the brand’s efforts. The woman’s voice, soothing,

mature and delicate also spurs associative feelings of motherly attachment, reminding the

viewer’s inner child of the responsibility one has to one’s original creator. The bright blue graphic

font found in the print advertisements (see appendix F) and the video sporting the words “Go

Green Wear Blue” also acts as a symbol of rebellion and revolution, communicating the idea of

wearing denim to paint the world back to its “original” blue hue.

Along with this comes the purity of the ad’s visual experience. By using uncomplicated,

universal and immersing visual imagery in the video, the brand communicates a sense of

simplicity and ease, bringing about ambiguous connotations of a clean environment and clean

clothing. Water as a metaphor also has many associations with cleaning, although the irony

posed here is the lack of water needed to wash denim in the garment’s manufacturing process.

Keeping the ad simple and straightforward is also a way for H&M to introduce brand flexibility

without over-committing to the eco-brand identity. By avoiding the tendency to over-pledge its

brand name to the cause, it refrains from hyper-targeting too specific of a market, thereby

allowing buyers who do not necessarily identify with the cause to participate as well. With H&M

known as such a mass-marketed, wide-reaching entity, it is important not to lose this important

brand asset in order for the campaign to be successful.

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H&M’s use of social media in its media placement strategy is a highly appropriate one.

With the campaign video streaming on YouTube and Vimeo, and with its print advertisements on

Facebook, it is easy for content to be viewed and shared by fans of the brand. It is likely that the

millennial generation would respond well to shared media through such social media platforms

(Baggini et al) with 81% of millennials in the US with a Facebook account, according to the Pew

Research Center’s report on Millennials in Adulthood (Taylor et al). Links to H&M’s online store

placed in description boxes also allow customers to easily access their webpage and make

immediate purchases or aid in the consideration process of the customer journey. It also allows

for 24/7 visibility to consumers across all parts of the world, which broadens its national reach.

Interwoven between the print photography on H&M’s Facebook album for the campaign are 7

#Bluefact pictures which contain fun facts from the H&M conscious team (see appendix G),

aiming to educate customers and the general public on its efforts to save water through

sustainable denim production. The use of the hashtag #Bluefact is more of an attention grabbing

headline that catches the eye of the customer, rather than an effective trendable phrase to be

shared with friends. Either way, it is unique and calls for engagement as users browse through

the campaign pictures on the brand’s Facebook page.

Another aspect of the campaign’s visibility is created through earned media via third party

blogs and websites such as Racked.com, Elle, WGSN, Whowhatwear, French Vogue and The

Guardian. The campaign has also been featured on several popular “green blogs” such as

Bettercotton and Ecouterre, which boasts the H&M’s collaboration with Spanish company

Jeanologia in the employment of water saving technologies (Chua). These publications are

important for raising awareness to several important communities of people including the eco-

conscious consumer and the fashion-conscious consumer. They also generate industry-wide

media attention, alerting other members of the industry looking to innovate in the same way.

As mentioned above, the company’s targeting strategy for the campaign is not just limited

to the eco-aware consumer, but to the broader spectrum of its existing market. The voice of the

campaign is made up primarily of a female adult, with the narrator’s voice and the model Hana

Jirickova (women management) featured in the video. However, H&M’s print editorials also

feature men, young children and even babies (see appendix F), which echoes the brand’s

mission to provide great fashion at affordable prices to all people across different age groups.

H&M’s pairing with denim, as a garment, is appropriate given denim’s existing equity amongst

consumers as a universal garment. It also acts as a way to defend the brand against skeptics of

the fast fashion industry who criticize similar companies for purveying unethically manufactured

goods.

Overall, the campaign has introduced H&M’s conscious denim line to the masses

effectively. However, consensus on how successful H&M has been in breaking through the clutter

and creating perceived value in all consumers has yet to be drawn. Consumers of fast fashion

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may not be prepared to place high value on sustainable clothing yet or share the content with

their peers, which may lead to the campaign being more of a sidelined advertorial. Given the

amount of information that H&M is seeking to communicate, it could be a practical decision for the

company to repeat attempts at educating consumers on its sustainability efforts.

Strategic and creative recommendation

H&M has been

successful in sparking

consumer interest in the trend

of the garment collecting

initiative, thus I would

recommend them to capitalize

on this idea and expand their

recycling efforts into their

cosmetic products. H&M

currently has a line of affordable

beauty products, offering

customers eye-shadow

palettes, compact powders,

makeup brushes, lipsticks and

body creams from as low as

$4.95 (see appendix I). These

prices put H&M at a highly

competitive position, supplying

affordable products of a

reasonable quality to women everywhere. By adopting this pricing strategy, H&M effectively

differentiates itself from other makeup brands in the market, including several of beauty giant

Sephora’s vendors, which can cost upwards of $50 for a makeup palette (see appendix J).

Several other fast fashion brands such as Forever 21 have conceded to do the same, cashing in

on consumers’ demand for fashion and lifestyle products outside of the apparel industry. The

cosmetics industry in the US alone raked in almost $57 billion in revenue in 2013, and is

forecasted to grow even more over the next few years (see appendix L).

How can H&M improve this area of their product range to incorporate more ethical

objectives and practices? In 2009, natural skincare brand Origins introduced a program called

Return to Origins, whereby consumers can give back any empty cosmetics jars, tubes and bottles

Figure 1 – mock up of H&M’s conscious cosmetic compact powder packaging with recycling symbol (front)

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to their nearest retail store, that will then be sent back to a central location for upcycling1 (origins).

Beauty giant M.A.C’s Back to M.A.C program offers customers a free lipstick of choice in

exchange for six returned M.A.C primary packaging containers (see appendix K). This offers

customers a post-consumer incentive to recycle waste, much like the garment collecting initiative

by H&M, which offers customers a 15% coupon off one item after donating 2 bags of clothing for

recycling (Gustafsson). Although the financial incentive is small, both the company and the

consumer benefits from the resulting social value. H&M could thus adopt a similar strategy with

their cosmetic products, introducing plastic waste recycling into its manufacturing processes. Like

the company’s previous Conscious campaigns, H&M would benefit from reduced input costs as

well as increased brand value.

Unlike other seasonal fashion

campaigns, this idea aims not to generate

more conflict and competition between

other substitute brands, but in fact, to

foster industry innovation and encourage

other similar companies to adopt the same

approach. Product packaging instructions

are crucial to disseminating information to

consumers on how to return empty

containers, but public relations and media

campaigns can also be employed to generate buzz and get consumers to contribute.

Overall, this creative recommendation is just one idea of many that H&M can employ in

order to grow the sphere of its conscious movement. With the massiveness of its reach,

purchasing power and consumer influence, H&M as a brand has endless potential to reshape the

fashion industry and the world.

                                                                                                               1 Upcycling: the process of converting waste materials or useless products into new materials or products of better quality or for better environmental value.

Figure 2 – mock up of H&M’s conscious cosmetic compact powder

packaging (back)

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Appendix

A) H&M, corporate structure from annual report 2013

B) H&M, screenshot from H&M’s conscious sustainable style online collection

<http://www.hm.com/us/subdepartment/LADIES?Nr=2000240>

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C) H&M, from the life of a dress #0206798 from Conscious actions sustainability report 2013.

Sweden: H&M Hennes & Mauritz AB, 2013.

<http://sustainability.hm.com/content/dam/hm/about/documents/en/CSR/reports/Conscious%20A

ctions%20Sustainability%20Report%202013_en.pdf>

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D) H&M, Screenshot of H&M’s Facebook page, Screenshot, 26 Nov. 2014.

<https://www.facebook.com/hmtheus>

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E) NEW LAND, Gustav Johansson, Niklas Johansson, Anders Lövgren, H&M Go Green Wear

Blue: Conscious denim campaign video, September. 2014.

<https://www.youtube.com/watch?v=4FPZXFJHcjE>

F) H&M, Go Green Wear Blue: Conscious denim print advertisement, September. 2014

<https://www.facebook.com/media/set/?set=a.1518263665078548.1073741833.1500573333514

248&type=3>

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G) H&M, Go Green Wear Blue: Conscious denim social media bluefact collage, September.

2014.

<https://www.facebook.com/media/set/?set=a.1518263665078548.1073741833.1500573333514

248&type=3>

H) Dirtball, “Green” Jean kickstarter page, September. 2013.

<https://www.kickstarter.com/projects/1670083643/the-green-jean-100-made-in-the-usa-eco-

friendly-de>

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I) H&M, Screenshot of H&M’s cosmetics line, Screenshot, 30 Nov. 2014.

<http://www.hm.com/us/subdepartment/LADIES?Nr=4294966242>

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J) Sephora, Screenshot Sephora’s bestselling makeup products, Screenshot, 30 Nov. 2014.

<http://www.sephora.com/makeup-cosmetics>

K) M.A.C, Screenshot M.A.C’s Back to M.A.C program, Screenshot, 30 Nov. 2014.

<https://www.maccosmetics.com/giving_back/btm_return_packaging.tmpl>

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L) Statista, Revenue of the cosmetic industry in the United States from 2002 to 2016. 2014.

<http://www.statista.com/statistics/243742/revenue-of-the-cosmetic-industry-in-the-us/>

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us%20Actions%20Sustainability%20Report%202013_en.pdf>

Movies / videos

• Milton Glaser: To Inform and Delight. Perf. Milton Glaser. Arthouse Films, 2008. DVD.

• Sinek, Simon. "How Great Leaders Inspire Action." TED Talks. TED Talks, 10 May 2010.

Web. 27 Nov. 2014.

<http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en

>.