Hello my name is James Roth. I'm here today to give my recommendations
to H&M on how they can increase trust and sales through promoting their sustainability awareness,
and introducing a certification system warranted in the wake of a post Covid-19 world.
H&M already do a lot in regard for sustainability: they have a new range of sustainable products,
they invest in their factories delivering employee training initiatives,
they are investing in new technologies such as circular ID which embeds microchips into their
clothing to track its lifespan and if it ends up recycled. It is the number one ranked company
by the fashion transparency index of 2020 for transparency and sustainability. However,
despite all this it could do better, much better. As the market leaders in fast fashion they are
setting the way for how companies should deliver their products. By zooming out and looking at the
future we are aware that the sustainability market is expected to reach an estimated valuation of 12
trillion dollars by 2030. Companies are having to coincide with new emission laws; consumers are now
more concerned about the environment than ever before. Due to Covid 19 and the lockdown we have
seen the effects of co2 on our atmosphere, and most importantly companies are trying to abide
by the UN's sustainability development goals. Goal 12 should not be an aim for H&M
it should be achieved. I think by looking into the small changes the company can implement as soon as
this year, it will lead to H&M accelerating far beyond any competition and be the new face of
sustainability. Firstly H&M need to set a standard transparency goal for the distance travelled by
garment and co2 emissions that have been created by it. Then next to each product on H&M’s website,
an honest transparent supply chain should be published. In this it should include an exact
supply chain from where the material was sourced, whether it is classified as sustainable fabric,
how far that material has travelled to get to the factory and any other destinations along the way
until it ends up within the exact warehouse or store that the consumer is buying from. Modes
of transport should also be listed whether it's by plane boat or lorry. Through this an algorithm can
be made to work out the exact distance of travel and estimated co2 cost. If this is below the set
goal that H&M have created for itself the garment can be certified as sustainable. Other companies
in different industries have been doing this for years, for instance Nintendo. They started their
own certification process in the 80s to promote games they believed to be of higher quality
and therefore increasing perceived value to the consumer. This certificate is called the Nintendo
seal of quality and is still used today. It was attempted to be copied by Sega however it did
not last very long. Some believe that it might be due to the competitive edge that Nintendo had over
Sega. This is why it is so important that H&M are the early adopters to this idea of certification.
According to UK research over half of UK consumers have said they value sustainability,
however the majority do not trust firms claiming to be sustainable. This is why
through a certification process both faith and trust can be given to the consumer and create
a positive relationship with H&M. There have been calls already for a categoric certificate
to be given to sustainable products by consumers; it has been said that through a certification
process consumers are much more likely to trust the company. Since H&M already invest
in sustainability and emerging technologies, I believe it is the perfect company to introduce
this process giving them the competitive edge. It will also create a trickle-down effect where other
major fashion firms will see that the emerging sustainability market and the consumer trust
is vital to their marketing and sales efforts. Through Covid 19 consumers have learnt to care for
the air that we breathe and it is predicted that they will reflect that in their purchasing habits
post Covid. this is why when a company claims to be sustainable it is important that they can be
transparent and back their claims, especially if they want to target the 12 trillion dollar market
that sustainability is pushing. H&M do much more than many other companies for sustainability
but is it enough? Does it need to be hidden behind a wall of text on their website?
It can become their greatest selling point. It can all start through an honest supply chain
being printed in black and white next to their product with a certification system in place.