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Value Creation

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Submitted By aps89
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“We are one team”
– H&M
Executive Summary
Sitting on top as the 3rd largest fast fashion producer in the world, H&M has enjoyed a spectacular 10% growth in the last five years. With its 600 million garments produced every year, H&M is a large player in the race to becoming a sustainable fashion house. After embracing sustainability at large in the last decade, H&M has made significant changes internally towards adopting and embedding sustainability into all their operations and value chain – but it’s still a work in progress.
H&M’s CSR initiatives have a strong track record and involve various stages and stakeholders of its value chain, including their design team, suppliers of raw materials and fibers, as well as customers. Some of these renowned initiatives include the Better Cotton Initiative, the Conscious Collection, the Fashion Against AIDS collection and the Garment Collecting Initiative to name a few. All which have in common the involvement of different stakeholders, from suppliers to customers and designers. In this context, our challenge was to find what more can H&M do? Where and how should value be created, and which opportunity would create the most value for H&M and its stakeholder, all while increasing the company’s triple bottom line.
The company’s core values, its strong customer focus and its business vision to provide customers with “fashion and quality at the best price in a sustainable way”, has driven many of H&M’s past initiatives and helped us identify a new area of opportunity for H&M to grow and create more value for its stakeholders: the sportswear market.
Economically, the sportswear market is H&M’s fastest growing category. In fact, the sportswear category is growing at triple the rate of general clothes and accessories. The global health & fitness trend is boosting the sales

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