H&M Adapts to Tricky Seasonal Transition

Dow Jones
09/24
 
 

STOCKHOLM--H&M's efforts to bring manufacturing closer to its markets while giving regional leadership more decision-making responsibility are helping the fast-fashion retailer navigate the tricky transition between seasonal collections amid unpredictable weather patterns.

Many countries across Europe and Asia have experienced a very early and extended summer this year, shortening the spring season and delaying the start of autumn and the period when shoppers typically buy warmer clothing.

This would traditionally cause headaches for clothing retailers, as decisions around ordering and shipping new collections are made long before they are actually needed, especially if large parts of manufacturing take place in Asia for distribution in the West.

That was the model H&M had been operating under, but Chief Executive Daniel Erver has been working to revamp the Swedish company's supply chain and organization, bringing production, distribution and decision-making closer to its main markets. This approach aims to make the company faster in responding to new trends and shortening the time it takes to get collections in store.

Speaking in an interview, Erver said that with the warm weather extending into September, the demand for heavier garments has been delayed, but thanks partially to supply chain improvements, organizational changes and trend analysis, the company is better prepared.

"We adapted the setup to be more relevant through the transitional periods, to show autumnal colors but lighter fabrics and lighter materials," he said.

"With our new organizational setup we also have teams who can be closer to the customer and act to make it more relevant, but also briefing the assortment teams to develop products that are less 'need-sensitive' in these transitional periods."

But that doesn't mean the retailer is immune to supply chain disruption. The Middle East conflict has caused knock-on effects to maritime shipping and air freight, which has caused some delays to H&M goods, prompting the company to bring in more inventory earlier as it seeks to avoid delays later.

Extra stock has also been brought in to cover previous gaps in its product offering in some markets, after the company left its inventory pile a little too thin amid efforts to reduce the level of discounting it needs to offer.

"We assess the stock as it's fresh, it's relevant. We're set up for a good autumn," Erver said.

 
 

应版权方要求,你需要登录查看该内容

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10