Week 2 Listening Exercise

H&M has opened over 4,550 locations as of August 2017. They take pride in being successful by offering a value proposition of settling on cheap prices with a wide arrange of selection. H&M isn't only about the low prices but they built a reputation for being a brand of high fashion and top designers. The new construction on the online distribution center has customers livid with delayed orders. Many consumers fear that clothes ordered 3 weeks ago will be out of fashion by the time their packages arrive. Along with new installments H&M also plans on using only recycled materials by the year 2030. Not everyone is convinced considering the rumor of H&M burning unsold clothes has been confirmed following the documentary on Danish TV. Despite the film being shown H&M still believes they can increase sales by $25 million in the upcoming year. The newest innovation includes a wedding shop launched in March. More economic priced wedding gowns has been a huge step forward for H&M due to the tons of millennial brides shopping online with the company. One of the biggest challenges the brand faces is marketing with racist accusations. H&M recently released a graphic hood line with a black child wearing what society says was the ultimate conversational photo on the site. Sales plummeted after the outbreak of angry customers and social media slashes. H&M mostly is depending on e-commerce in 2018 which is why the immediate take down of the photo was a necessary step to keep what little consumers they did have. If I were the brand manager I would recommend that H&M needs to close down multiple locations in order to better focus on the online sales that increase profitability. This would also allow for better marketing opportunity while allowing H&M to recover from the huge loss this year.