Business Wars Fast Fashion | Dress for Excess | 4
Oct 11, 2021
In 2018, H&M grapples with an overwhelming surplus of unsold inventory while Shein flourishes, using social media to deliver ultra-cheap fashion swiftly. The tumultuous journey of Topshop unfolds as allegations against its leader spark outrage, and Forever 21 faces its own troubles. The podcast delves into the fast fashion industry's adaptation to viral trends, the impact of scandals on brand reputation, and the ongoing challenges of sustainability amidst rising competition.
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H&M's Inventory Crisis
- In 2018, H&M faced $4 billion in unsold inventory, impacting sales and investor confidence.
- Their online presence lagged behind competitors like Shein, which thrived with a $1.5 billion online-only model.
Shein's Online Success
- Shein's online-only model allowed them to avoid the costs of physical stores, unlike H&M.
- This online focus contributed to Shein's $1.5 billion in sales in 2018.
Inventory Management Advice
- H&M should reconsider its inventory management and learn from Zara's faster, more responsive supply chain.
- Zara avoids excess inventory by owning every step of its production.