IMPACT OF COVID-19 ON H&M

Abstract

The world's second biggest fashion retailer, Sweden’s H&M, cut 250 of its stores globally. Covid-19 pandemic had moved a lot of H&M shoppers online. H&M, which began a gradual reopening of stores in late April 2021 after most of the stores had been shut by the pandemic.

Against this backdrop, and with a goal to have all H&M group’s brands use only recycled or sustainably sourced materials in their collections by 2030, the fashion giant faced COVID-19.

Source -https://www.statista.com/statistics/1133661/h-and-m-sales-growth-coronavirus-crisis

The coronavirus pandemic, which emerged early 2020, has had drastic negative effects on businesses around the world. H&M Group, week 12 of 2020 to week 22, the sales growth was still at -34 percent compared to the year prior. Due to this in 2020 there was a significant decrease in demand, thus causing the shift of the demand curve.

This paper talks about the RECOVERY OF H&M SALES POST PANDEMIC,H&M offered a range of services based on circular business models such as resell, remake, repair and garment rental, as well as the garment collecting in stores globally for textiles recycling. The H&M’s innovation hub ‘The Laboratory’ runs a range of projects focusing on digital services connected to sustainability. How H&M has been able to meet the consumer expectations by incorporating all the sustainable fashion measures. They could also able to incorporate a lot of innovative ideas which include fashion & technology to cater younger segments mainly, these innovative ideas help the brand to increase its demand thus causing a shift in the demand curve.