Is H&M on the Right Track To Make It Back to the Top?

H&M was arguably the leader in what is now known as "fast fashion" during the early 2000s before SHEIN took over. In order to compete and stay relevant, H&M has been fast-tracking a new course aimed at being more environmentally responsible.

As reported by Business of Fashion (BOF), H&M is repositioning itself to compete with SHEIN, which has reshaped the fashion market with its ultra-low prices and rapid production. In a recent podcast discussion, retail correspondent Cat Chen shared that H&M's CEO Daniel Ervér is strategically targeting the middle market, aiming to provide options that are more affordable than Zara yet higher in quality than SHEIN. Ervér told Chen in a separate interview that the goal is to "appeal to both ends of the market with a mix of affordable basics and higher-end pieces." This shift is essential for H&M as it works to clarify its identity amid increasing competition.

While SHEIN continues its rapid growth, concerns about its environmental impact have emerged, with emissions surpassing those of other major fashion brands. BoF's senior sustainability correspondent Sarah Kent highlighted that SHEIN's reliance on cheap materials and coal-powered manufacturing contributes significantly to its footprint. “Over the last three years, their emissions have tripled as their sales have grown hugely,” she shared.

As SHEIN faces growing scrutiny from regulators and investors, H&M sees an opportunity to reclaim market space, suggesting that established brands can still thrive in an evolving landscape.

For starters, H&M has announced a shift in its sourcing policy, declaring that it will no longer procure new down feathers for its products. Instead, the fast fashion retailer plans to rely exclusively on post-consumer recycled sources for down and feathers by the end of 2025. Currently, approximately 90% of the down and feathers used in H&M items already come from recycled materials.

According to Supply Chain Dive, a company representative emphasized that this move aligns with H&M's ongoing commitment to sustainability and the use of responsibly sourced materials. The brand's animal welfare policy mandates that all animal-derived materials must originate from certified farms that adhere to enhanced animal welfare standards. This decision follows pressure from advocacy group PETA, which has been campaigning against the use of down.

Furthermore, H&M has unveiled a new concept pop-up store at Selfridges in London to introduce its new premium childrenswear line, H&M Adorables. This initiative, which launched on Oct. 10, marks the brand's first entry into department stores.

Designed with a focus on high-quality materials and timeless aesthetics, H&M Adorables features refined silhouettes while incorporating playful elements. The Selfridges pop-up utilizes wooden fixtures and a central newsstand to create an engaging shopping experience for families.

In addition to being available at Selfridges in London, the collection can also be found in Birmingham and Manchester locations, in select H&M stores, and online at Selfridges and H&M.com.

The pop-up was crafted by Open Studio Stockholm and showcases a range of garments, including soft cashmere and premium wool knitwear, as well as organic cotton blouses and waxed-cotton jackets. A wooden kiosk highlights the collection and features the H&M Adorables mascot, illustrated by British artist John Bond.

According to Retail Technology Innovation Hub, SHEIN is also actively expanding in the UK and is considering a listing on the London Stock Exchange. The company’s UK operations brought in £1.55 billion in revenue for 2023, an increase from £1.12 billion the previous year, with annual profits nearly doubling to £18.7 million from £9.8 million.