h&m loop case study

H&M - "Looop" Initiative

Fashion, clothing and textiles

What is it?   “Looop” is a new in-store recycling initiative being piloted by H&M. It is a garment-to-garment recycling system, designed to incentivize customers to recycle their old clothes (H&M 2020b, c). Although some sustainably sourced virgin materials must be added to strengthen the yarn, the system transforms old clothing into new ones, while not using any water or chemicals (H&M, 2020a).

Why is this important ? Recycling rates in the fashion industry are low. Higher recycling rates can – theoretically – decouple fashion from virgin material inputs. This is important, because the clothing industry is one of the most polluting industries. It is responsible for around 10% of total global greenhouse gas emissions (more than the shipping and international aviation industries combined) (Niinimäki et al, 2020). Conventional (non-organic) cotton production is a vast consumer of water and pesticides. 20,000 liters of water are required to produce 1 kg of cotton (WWF, 2020). Polyester and nylon are made of manmade materials consuming energy and resources. Further, when these fossil-fuel based fibres break down, they can release large amounts of micro-plastics into the environment (De Falco et al., 2019). Clothing is a massive source of obsolescence and waste. The Ellen MacArthur Foundation (2017) estimates that “ USD 500 billion value is lost every year due to clothing being barely worn and rarely recycled ”.

Main resource strategy :  Closing the loop by recycling fibres from old clothing and textiles to make new garments.

Business model aspects :

• Value Proposition: New value for old clothes.
• Value Creation & Delivery: Customers can bring in their old garments to the store and have them made into new ones. The Looop recycling system, first cleans and disassembles old garments, then spins new yarn and knits it into new items. The entire process takes 5 hours and is visible to customers. Currently, customers can choose between a sweater, scarf or a baby blanket as the final products (H&M, 2020d).
• Value Capture: For a fee of €10 – €15, customers can have their clothes transformed into a new item (H&M, 2020d).

Business model experimentation practices :  Initial pilot in Stockholm store.

Sustainability outcomes : No reported data available yet. The initiative is currently in its pilot stage and was launched on 12 th October 2020, at the Drottninggatan store in Stockholm, Sweden (Parija, 2020).

De Falco, F., Di Pace, E., Cocca, M., & Avella, M. (2019). The contribution of washing processes of synthetic clothes to microplastic pollution. Scientific Reports, 9(1). https://doi.org/10.1038/s41598-019-43023-x

Ellen MacArthur Foundation. (2017). A new textiles economy: Redesigning fashion’s future. Accessed 7 December 2020 at: https://www.ellenmacarthurfoundation.org/our-work/activities/make-fashion-circular/report

H&M. (2020a). H&M Group Sustainability Performance Report 2019. URL: https://hmgroup.com/content/dam/hmgroup/groupsite/documents/masterlanguage/CSR/reports/2019_Sustainability_report/H%26M%20Group%20Sustainability%20Performance%20Report%202019.pdf

H&M. (2020b). Let’s close the loop. Accessed 18 November 2020 at: https://www2.hm.com/en_gb/hm-sustainability/lets-change.html/close-the-loop

H&M. (2020c). Magazine: From old to new with Looop. Accessed 18 November 2020 at: https://www2.hm.com/sv_se/life/culture/inside-h-m/meet-the-machine-turning-old-into-new.html

H&M. (2020d). News Article: Recycling system ’Looop’ helps H&M transform unwanted garments into new fashion favourites. Accessed 18 November 2020 at: https://about.hm.com/news/general-news-2020/recycling-system--looop--helps-h-m-transform-unwanted-garments-i.html

Kavilanz, Parija. (2020).  H&M will let people convert old clothing items into new ones at Stockholm store. CNN Business. URL: https://edition.cnn.com/2020/10/08/business/hm-clothing-recycling/index.html

Niinimäki, Kirsi; Peters, Greg; Dahlbo, Helena; Perry, Patsy; Rissanen, Timo; and Gwilt, Alison. (2020). The environmental price of fast fashion. Nature Reviews Earth & Environment. 1. 189-200. DOI: 10.1038/s43017-020-0039-9

WWF. (2020). Cotton | Industries | WWF. World Wildlife Fund. Accessed 1 December 2020 at: https://www.worldwildlife.org/industries/cotton

About project Circular X  

Project  Circular X  is about ‘Experimentation with Circular Service Business Models’. It is an ambitious research project funded by the  European Research Council (ERC)  which supports top researchers from anywhere in the world. Project CIRCULAR X runs from 2020-2025.  The project is led by Principal Investigator (PI) Prof Dr Nancy Bocken, who is joined by a multidisciplinary team of researchers at Maastricht Sustainability Institute (MSI), Maastricht School of Business and Economics, Maastricht University. The project cooperates with businesses who want to innovate towards the circular economy.  

Project Circular X addresses a new and urgent issue: experimentation with circular service business models (CSBMs). Examples of such new business models include companies shifting from selling products to selling services and introducing lifelong warrantees to extend product lifetimes. However, CSBMs are far from mainstream and research focused on experimentation is little understood.  The research aims to conduct interdisciplinary research with 4 objectives:  

• Advancing understanding of CSBMs; their emergence and impacts 
• Advancing knowledge on CSBM experimentation 
• Developing CSBM experimentation tools
• Designing and deploying CSBM experimentation labs

Funding source   

This project has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme, grant agreement No. 850159.   

Using this information  

When you cite this publication, please use the following source:

Circular X. (2021) Case study: H&M “Looop” Initiative. Accessed from www.circularx.eu

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Recycling System ’Looop’ Helps H&M Transform Unwanted Garments into New Fashion Favourites

We are thrilled to soon offer customers in Sweden the possibility to transform unwanted garments into new fashion favourites with the help from our new garment-to-garment recycling system ‘Looop’. We are committed to closing the loop on fashion and this machine visualizes to customers that old textiles hold a value and should never go to waste.

Looop opens to  the public in one of our Drottninggatan stores in Stockholm on October 12. This is the first time this garment-to-garment recycling system is shown in store by a fashion retailer and H&M is proud to soon offer customers the opportunity to watch this container-sized machine recycle their old textiles into something new. This is part of a bigger plan - our ambition is to become fully circular and climate positive and we are working with many exciting projects to reach this goal. We must innovate materials and processes while inspiring customers to keep their garments in use for as long as possible. 

“We are constantly exploring new technology and innovations to help transform the fashion industry as we are working to reduce the dependency on virgin resources. Getting customers on board is key to achieve real change and we are so excited to see what Looop will inspire,”

                                                                says Pascal Brun, Head of Sustainability at H&M. 

Looop uses a technique that dissembles and assembles old garments into new ones. The garments are cleaned, shredded into fibres and spun into new yarn which is then knitted into new fashion finds. Some sustainably sourced virgin materials need to be added during the process, and we of course work to make this share as small as possible. The system uses no water and no chemicals, thus having a significantly lower environmental impact than when producing garments from scratch.

H&M wants to lead the change towards a sustainable fashion industry. In 2013 we became the first fashion retailer with a global garment collecting program. Now, we are taking the next step with our garment-to-garment recycling system Looop. For 100 Swedish kronor, members of our loyalty club can use Looop to transform their old garment into a new favourite. For non-members the fee is 150 Swedish kronor. All proceeds go to projects related to research on materials. By 2030 we aim for all our materials to be either recycled or sourced in a more sustainable way, a figure that for 2019 was at 57%.

Looop is created by the non-profit H&M Foundation, together with research partner HKRITA (The Hong Kong Research Institute of Textiles and Apparel) and Hong Kong-based yarn spinner Novetex Textiles. For more information on how Looop works check out: https://www2.hm.com/en_gb/life/culture/inside-h-m/meet-the-machine-turning-old-into-new.html 

H&M's 'looop' recycling system transforms unwanted garments into new fashion favorites

what if an unwanted pair of socks could change the fashion system? H&M has developed a machine that dissembles and assembles old clothes into new ones with ‘looop’ — the world’s first in-store recycling system. ‘looop’ opened to the public in an H&M store in stockholm on october 12, 2020, with customers able to watch the container-sized machine recycle their old textiles into something new. here’s how it works — an unwanted garment is fed into the machine to get cleaned, shredded and spun into yarn. after about five hours, a new knitted garment is made from the piece put into the machine. the system uses no water and no chemicals, thus having a significantly lower environmental impact than producing garments from scratch.

in eight steps, ‘looop’ turns old garments into new ones: 1. the old garment is sprayed with ozone to remove any microorganisms; 2. the garment is shredded down into small chunks of fabric fibres; 3. shredded chunks are then filtered to remove dirt, and extra virgin material is added for strength; 4. the clean fibre mix is straightened into a fibre web and then pulled into slivers; 5. multiple fibre slivers are combined to create even stronger, thicker slivers; 6. the thick fibre slivers are spun to create a single yarn thread; 7. single yarn threads are doubled and twisted together to increase their strength; 8. finally, the yarn is then knitted into a new, ready-to-wear design.

the innovative technology behind H&M’s ‘looop’ has been developed by the hong kong research institute of textiles and apparel (HKRITA) in collaboration with the non-profit H&M foundation . as of now, ‘looop’ is the only in-store recycling machine, but HKRITA will license the technology widely to help the entire industry become more circular.

the garment-to-garment recycling system is part of a bigger plan for the company, which strives to become fully circular and climate positive. ‘we must innovate materials and processes while inspiring customers to keep their garments in use for as long as possible. by 2030 we aim for all our materials to be either recycled or sourced in a more sustainable way, a figure that for 2019 was at 57%.’

‘we are constantly exploring new technology and innovations to help transform the fashion industry as we are working to reduce the dependency on virgin resources,’ says pascal brun, head of sustainability at H&M. ‘getting customers on board is key to achieve real change and we are so excited to see what looop will inspire.’

take a look at the designs ‘looop’ can remake your pre-loved clothing into, here .

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Unravelling the Illusion: H & M’s ​ “ Close the Loop” Textile Waste Initiative a Greenwash

Swedish Newspaper Aftonbladet Exposes H & M’s Textile Collection Initiative

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In the realm of fashion, fast fashion has emerged as a force that reshapes our wardrobes at an astonishing pace. The allure of affordable prices and ever-changing trends has captivated consumers worldwide. However, beneath this facade of convenience lies a mounting problem: textile waste. From the Atacama Desert to Ghana’s coastlines, fast fashion’s rise to prominence has decimated entire ecosystems. How these are interlinked and how far-reaching the consequences are, is unfathomable. Yet, the environmental burden of clothing disposal and production has also opened the door to potential solutions.

No Longer a Phenomenon: Fast Fashion as the Industry Norm

Fast fashion, characterised by its rapid production of inexpensive garments aligned with the latest trends, revolutionised the fashion industry. Tireless machines, a global, largely underpaid workforce and an effervescent hunger for productivity and profit transformed a luxury good into a disposable product. This approach has led to an unprecedented surge in clothing consumption. Global production doubled between 2000 and 2014 , surpassing a staggering 100 billion garments annually. (Source: McKinsey &  The Ellen MacArthur Foundation. The World Economic Forum &  ShareCloth state that 150 billion garments are produced annually.)

Beneath the glossy veneer of fast fashion’s rapid turnover lies an unsettling reality: textile waste has become an escalating crisis. The industry’s breakneck pace, enticing consumers to purchase and discard clothing constantly, has generated overwhelming waste. According to Fashion United , ​ “ Clothing consumption has grown explosively over the past 20  years. Fashion consumers buy over 80 billion new pieces of clothing every year. This is over 400 % more than we consumed just two decades ago.”

In the United States alone, an estimated 11 . 3 million tons of textile waste, equivalent to 85 % of all textiles , end up in landfills every year. COSH ’s previous article spotlighted Kenya’s infamous Dundora textile dumping site, whose harrowing images have swept the globe.

The influx of discarded clothing flowing into Kenya from global sources has also increased significantly in recent years, parallel to Ghana. This has amounted to 17 garments per year per Kenyan, of which up to eight are useless. Both countries are battling against Western waste colonialism that has reached epic proportions.

Fast Fashion Industry Players: Culprits and Catalysts for Change

Overproduction, resulting in unbridled consumption, is inherent to the profitable business models of key industry players. H & M, Bohoo, and SHEIN are just a few to name in an ever-growing list of behemoths. If there is so much overproduction, what happens to these unsold clothes? Where do our discarded textiles end up that we diligently put into the numerous containers lining our streets?

In the latest scandal following an investigative piece by the Swedish Boulevard newspaper Aftonbladet , H & M’s garment collection program was proven to be anything but circular. H & M has been offering an in-store garment collection since 2013  in an effort to unite the two contradictory realms of fast fashion and sustainability. Under the slogan ​ “ Let’s close the loop”, clothing pieces are collected and supposedly recycled, and textile waste is reduced. H & M heralded its initiative as ​ “ the largest campaign of its kind in the world.” The brand states it collected 18 , 800 tons of discarded clothing and textiles through its clothing collection initiative in 2020 alone. That is equivalent to 94 million t‑shirts.

Neither the brand’s sustainability report nor its website discloses what percentage of the 18 , 800 tons of collected garments are recycled. The latest investigative findings render the self-claimed world’s largest campaign of its kind a hoax, impressive only in theory. Through a customs paper check of H & M’s business partners, Aftonbladet’s investigation discovered that H & M products are among the five most common labels present in textile waste inundating Ghana’s beaches. It was concluded that the company exported 314 , 000  kilograms of textiles to Ghana last year alone. This is equivalent to about one million garments.

Anything But Circular: H & M’s Collection Initiative Is a Marketing Ploy

In a bold and audacious move, the newspaper tracked multiple H & M garments using GPS transmitters to unravel their true journey. Among these garments, two jackets were followed to a recycling company in Hungary. However, one jacket veered off its expected path, finding itself in the hands of a textile company in India. Additional tracked items ventured as far as Poland, Benin, and South Africa. The digital trail abruptly vanished for three pieces. This leaves us speculating about their unfortunate fate, likely lost amidst the oceans they crossed.

The implications of these findings are rather disheartening. H & M confidently assures consumers that sustainability-focused enterprises will diligently oversee the proper management of all collected garments. Yet, the harsh reality presents itself in stark contrast. None of the meticulously tracked items remained within the borders of Sweden as initially intended. Instead, they mysteriously disappeared or were swept up by profit-oriented recycling and textile enterprises. Across the globe, these companies export used textiles to countries such as Ghana, Kenya and Uganda. Furthermore, these garments travelled extensive distances, surpassing 1000 kilometres, leaving an indelible carbon footprint that extends far beyond their production.

The Flood of Used Textiles

Like many other countries in the Global South, Ghana has become a dumping ground for textile waste. There, the influx of cheap, low-quality clothing, often referred to as ​ “ dead white man’s clothes ” or ​ “ obroni wawu,” floods local markets and second-hand clothing stalls. According to The Or Foundation, around 40 % of the clothes circulating through the retail side of Kantamanto leave the market as waste. The most critical driver of this is the fact that there is too much clothing. The Guardian states that as much as 100 tonnes of garments are disposed of daily in Katamanto . This has turned a once pristine Korle Lagoon into a death pit.

The grandiose sustainability promises touted by H & M now appear to be nothing more than a skilfully crafted marketing ploy. The garments poised to usher in an era of the circular economy have embarked on a perplexing odyssey that disregards environmental responsibility and shows scant regard for the origins from which they emerged. The brands dominating the discourse, complex infrastructure landscape and funds hold the power to become catalysts of change, yet they are failing society and the planet.

Reframing Waste: Local Designers Battling Against Western Waste Colonialism

In response, African traders, stall owners and local designers are putting their ingenuity to the test, repurposing and repairing slashed t‑shirts, boxers and shirts sourced from markets such as Katamanto. From Uganda’s Buzigahill to Ghana’s The Revival and Slum Studio’s founder Sel Kofiga, innovative African designers are turning textile waste into artful creations. They are unpacking the complexities of Western waste colonialism and returning their politically packed upcycling statements to the Global North.

The tale of these tracked garments unveils a sobering reality: the fashion industry’s true impact extends far beyond our closets. The consequences ripple through the global ecosystem, from exploiting resources and individuals to decimating distant lands. It is a wake-up call echoing through the corridors of our collective conscience, urging us to rethink our consumer habits and embrace a more responsible approach to fashion.

As consumers, we possess the power to shape the future of fashion. We can drive the industry towards a brighter and more equitable path by questioning, researching, and supporting brands that prioritise sustainability and act on their promises.

The journey of these garments represents more than just their physical trajectory; it symbolises the choices we make as individuals and the impact we can collectively achieve. It is a reminder that true change requires not only the transformation of industry practices but also a fundamental shift in our consumer mindset.

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• Circularity
• Sustainability
• Circularity & climate

By shifting towards a circular ecosystem we can address some of the biggest challenges facing our planet at this time such as climate change and biodiversity loss.

Our circular approach

For decades our industry has operated in a linear way – taking, making and wasting. It’s time to change. At H&M Group, we’re committed to reducing our dependence on virgin materials, achieving more with less and building a circular ecosystem to keep products and materials circulating at their highest value.

There is still a long way to go – for the entire industry – and we recognise the need for change at a system level. Our approach is aligned with the Ellen MacArthur Foundation’s (EMF) definition of a circular economy, which focuses on three key principles:

• Eliminate waste and pollution
• Circulate products and materials at their highest value
• Regenerate nature

For the fashion industry, this means products should be designed to be used more, made to be made again, and made from safe and recycled or renewable inputs. 

A circular ecosystem

Our circular approach focuses on three interconnected areas that cover our products and services, supply chain, and non-commercial goods, such as packaging and store interiors, offices and distribution centres.

Circular products:

Creating products that are made to last from safe, recycled, regenerative or sustainably sourced materials, that can circulate multiple times.

Circular supply chains:

Building scalable systems that circulate products and materials for repair, reuse, remake and recycling that use lower impact production processes— such as dyeing, printing and finishing.

Circular customer journeys:

Providing convenient ways for our customers to engage in circular fashion where products are used more before being repaired, reused, remade and recycled.

Circular ecosystem in action

Building a circular ecosystem is a continuous journey with many interdependencies both within and outside H&M Group.

We are align ing supply and demand , and increas ing material efficiency. We invest in AI and tech tools for improved planning and accuracy, and customer centricity.  

We have developed circular design guidelines and are increas ing circular design for our products and assortments so they can be used more, repaired, remade and recycled . For example, we follow quality standards and requirements, are increasing our use of Jeans Redesign Project and are testing circular design strategies for our products and collections.   

Our goal is for 100% of our materials to be either recycled or sustainably sourced by 2030, including our ambition for 50% recycled materials. We test, invest in and scale more innovative materials through our brands, Circular Innovation Lab, H&M Group Ventures, and green investments — for example, investments in Infinited Fiber Company, TreeToTextile , and Fairbrics — and bridge the commercialisation gap through our supply chain network.   

We test, invest in and scale innovative production processes that can lower use of water, energy and chemicals — such as dyeing, washing and finishing — through our brands, Circular Innovation Lab, H&M Group Ventures, and   green investments. These include investments in Colorifix and Alchemie Technology, and investments in pilots such as with Recycrom.  

We offer use and care advice, information, and products across our brands to prolong the life of our products.  

We offer remake advice, information and services across our brands to prolong the life of our products — for example through COS Full Circle and its partnership with The Seam, H&M Take Care, and ARKET repair partners.  

We increase access to, and invest in , piloting and scaling customer-facing circular business models (such as resell and rental) across H&M Group in stores and online. These include Sellpy , H&M p reloved & r ental, ARKET Archive, COS Full Circle, COS Restore and COS Resell, and in-store second hand at Weekday and Monki .  

We support scal ing technology and infrastructure to collect and sort products and materials — we collect used textiles at our brands and sort them so they can be circulated at their highest value for reuse and recycling .  

We support scal ing technology and infrastructure to recycle and circulate materials at their highest value. We invest in recycling technology and infrastructure with partners including Infinited Fiber Company and Ambercycle . We focus on textile waste in production, post – consumer textiles, and collaboration to advance progress  

Putting people at the centre of circular fashion

We know a lot about the environmental impact of a circular fashion industry, but we have lots to learn about the impact on people, including understanding what it means for jobs across the fashion value chain.

In 2021, we worked with several partners on Keeping Workers in the Loop . This report looked at the impact on employment of moving to a circular fashion system and recommended how to create a just, fair and inclusive fashion industry. Since it was launched, we have worked with the report’s key learnings to build our knowledge and to define how we can secure fair and equal circular jobs across our value chain.

We publish our Sustainability Disclosure annually. In this document, we set out our goals and the progress we’ve made in the previous year. Find the latest version here . More up to date information can be included on this page. 

Circular business models

Designing for circularity

Collect, recirculate and recycle

Brand Case Study: H&M need to #REWORKIT

Back in April, H&M hosted World Recycle Week , an initiative designed to promote sustainability in fashion and to ‘Close The Loop’ on the thousands of items of clothing that are cast aside on landfill every year. But whilst the campaign may have initially seemed like a wholesome and powerful way to affect change, in its aftermath many have argued that the brand’s intentions were anything but.

According to Anna Gedda, H&M’s Head of Sustainability , the brand has been at the forefront of sustainability for years. In 2013 it launched its Garment Collecting Initiative, through which customers have helped recycle 25,000 tons of unworn clothes. Unwanted items are collected in more than 3,600 H&M stores worldwide, and then shipped to one of seven sorting plants where they begin their journey to become either re-worn and sold in second-hand stores, re-used as cloth or upholstery, or recycled to become a new fabric. To make that gigantic volume more comprehendible, Gedda compares it to collecting 125 million T-shirts in three years.

A huge effort of World Recycle Week, was to collect another 1000 tons of recycled fashion in just seven days. But alongside this came a call out to fashion brands to create ‘A Closed Loop’ within fashion, in which old clothes can be turned into new ones without using additional materials. Closed-loop products are already available at H&M and include recycled denim fabrics taken from jeans collected at the Garment Collecting initiative.

To grab the fashion world’s attention, and to make as many people as possible aware of World Recycle Week, H&M teamed up with the notoriously politically active singer M.I.A., as well as other key influencers to spread the #REWEARIT #REWORKIT message.

And so why has there been such a backlash? Well to start with Quartz reported on how the biggest strike against H&M is : 

“ the giant pile of clothing it produces every day. The Swedish retailer is one of the largest fashion brands in the world in terms of sales volume. It’s staggering to consider: The quantity of cheap t-shirts, jeans, dresses, jackets, and everything else it produced and sold reached about $25 billion in global sales in 2015. To grow the materials, dye and finish them with chemicals, manufacture, and ship all those clothes puts a tremendous strain on the environment and consumes vast resources. That volume is the primary sustainability challenge H&M faces, and it knows it. ”

The Guardian then pointed out a fundamental flaw in World Recycle Week’s ambition. Whilst it may strive to collect 1,000 tons of clothing waste;

“ given the limitations of current technology, it would likely take H&M up to 12 years to use 1,000 tons. Meanwhile, it produces that same volume of new clothes in a matter of days .”

But perhaps most critical to the campaign’s hypocrisy, is H&M’s historically dubious treatment of underpaid workers. High Snobiety explained to us how;

“ less than six months ago, the Clean Clothes Campaign published a report accusing the company of being way behind in their promise – made after the Rana Plaza building collapse – to improve working conditions in their factories in Bangladesh. A Human Rights Watch study last year noticed similar problems in Cambodia, another country H&M uses extensively for its cheap labor. On top of that, accusations of using child labor are still here to this day, even if the company does report to make some effort to banish the custom .”

And so, whilst H&M’s star-fronted campaign may have set out to bring about a revolution of sorts, all it ultimately managed to do was highlight it’s own shortcomings in sustainability and ethical practice. Eek, a tip from us guys: #REWORKIT.

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The Swedish brand H&M has been putting sustainability center stage for quite some time now. They communicate their efforts to work sustainably through their website. A short list of some of H&M’s projects:

• One of their goals is to increase the use of sustainable fabrics and materials each year, thereby offering green choices to their clients. H&M is always looking out for innovative materials and better production techniques. These efforts resulted in the Conscious Collection. All the items from this collection are made from materials such as biological silk, leather, linen and cotton, recycled polyester and lyocell. Even the beads and sequins are recycled. In 2014, 21,2% of H&M’s cotton was certified organic cotton -- their goal is to reach 100% by 2020.
• H&M’s standards of partnership are high, which is why they reward their partners’ efforts at sustainability. H&M wants to have a positive impact on the communities they touch, for instance using their influence to demand a fair living wage for workers.
• H&M feels it’s important to do as much as possible to reduce their impact on the environment, for instance using renewable energy wherever they can. They also want to inspire their clients to live sustainably and to make better choices.
• Reduce, reuse, recycle: there you have H&M’s three key concepts. A lot of fashion ends up in a landfill, and H&M simply hates to see this happen. This is why they teamed up with I:CO to create the first worldwide take-back system for clothing. Customers can hand in any unwanted garments and H&M will give them a new life. The ultimate aim is to close the loop, which means being able to turn old garments into new fashion.
• Lastly, there’s the H&M Conscious Foundation, an independent organization that strives to create long term positive change for people and their communities. The Foundation is currently focusing on education, clean water and empowering women.

• Go for low impact materials
• Keep your textiles in the loop

Consumption

• When worn out: bring back

End of life

• Organize collection and take-back systems

How Is H&M Bringing the Circular Economy to the Apparel Industry?

This past year, I have grown to appreciate how clothes represent us as an individual. From silhouettes to color palettes, clothes help us express ourselves with our own sense of ‘style’.

But like our personalities, our styles change and grow. In the process, we have ramped up the consumption of materials such as polyester by 157% over the past 20 years . It is estimated that the textile industry would need to throw 20 million tonnes of plastic micro-fibres into the ocean by 2050. This is one of the significant consequences made by fast fashion trends that needs to be addressed.

With fast fashion, retail brands such as H&M developed a business model that delivers trendy clothes at an affordable price for the consumer. Hennes and Mauritz (H&M) was founded in Sweden in 1947 with a focus on affordable clothing. As of 2019, 57% of the group’s materials are recycled or sourced in a sustainable manner, on track to reach 100% by 2030.

As a leader in affordable fashion retail, H&M has taken a step further by redesigning the product development life cycle for their clothes. They want to lead the industry through this sustainability positioning using the circular economy approach.

What is a Circular Economy?

A circular economy is a systemic approach for a business to be affordable yet environmentally conscious. Such an approach can be beneficial for both business and society.

The circular economy is becoming more and more relevant to the fashion industry. So how companies achieve their goal of circular economy? By analyzing each stage of product development, from sourcing to eventual re-use, a retailer proceeds to design clothes while noting the environmental impact of different materials and their treatment.

Read: The Torchbearers of Sustainable Fashion

For the twenty-first century, a far bigger goal is needed: meeting the human rights of every person within the means of our life-giving planet. Economist Kate Raworth

Traditionally, most retailers follow the Linear model: Take, Make, and Waste. The linear system does not consider the recyclability of a clothing piece. In the process, large amounts of waste are generated.

On the other hand, the circular model keeps a recovery-minded design, where value can be salvaged with multiple methods. Namely second-hand use, and re-use of materials for new clothes.

H&M developed its business model around the latter approach, becoming a leader with the circular economy model.

How did H&M Make Their Own Supply Chain Circular?

H&M’s value proposition derives from the aim to deliver affordable trendy clothes.

They accomplish this by not using any factories, to maintain low inventory, and developing a responsive just-in-time production system. As a result, H&M maintains high production for in-season clothes which sell like hot cakes. The flexibility provided by just-in-time production puts an emphasis on responsiveness.

For the circular economy approach, H&M aims to maximize the value derived from resources, in each stage of the value chain. It goes beyond simple recycling and digs into the sourcing, treatment and design process involved in developing garments.

“It takes more than 20,000 litres (5,283 gallons) of water to produce just one kilogram (2.2 pounds) of cotton, which roughly equals one T-shirt and a pair of jeans.”

H&M has already implemented multiple steps to ‘close’ its value chain. By 2030, the brand aims to source only sustainable raw materials. This includes finding better treatment methods for materials such as cotton, which requires large amounts of water and chemicals. By 2022, H&M wants to reduce water consumption by 25% for its independent supplier’s garment production.

Aside from design and production, the circular approach places an emphasis on reuse and recycling. H&M offers garment collection in its stores. It has collected almost 29,000 tonnes of material for recycling. It has also developed a new focus on prolonging the life of these materials for restoration and re-use. Check out this video:

What strategic advantages did H&M achieve with circular economy?

With this closed loop strategy, there are three main advantages H&M achieves:

Optimized Use of Resources

With the circular approach, H&M aims at 100% renewable energy for its operations. In 2018, they procured 96% of electricity from renewable sources. As a result, the group cut costs by EUR 4 million .

Read: How Zara became the undisputed king of fast fashion?

New sustainability business models.

With the circular business model, new initiatives are being developed to improve each stage of the value chain, from material development to re-use and packaging. H&M launched a B2B service called Treadler, which helps other apparel retailers accelerate sustainable changes in their value chains, by offering access to its own supply chain.

CSR Leadership

While revamping its own supply chain and taking on multiple sustainability changes, H&M has made charitable donations to the sum of EUR 1.7 million by 2013 for every kilogram donated to the brand. In addition, the group has made investments in start-ups that can drive technological advancement for each stage of the value chain. For instance, Renewcell developed a methodology for re-using used cotton pulp for new fabric fibers. The same re-used fabric was used for H&M’s Conscious Exclusive Collection.

H& M has shown true leadership in implementing Circular Economy

H&M has taken the lead in introducing sustainable practices in the circular economy. The brand has implemented a mindset shift in how clothes are developed and worn. That too Without changing its main value proposition of providing customers trendy and affordable clothes.

Aside from maximising the use extracted from existing fabrics, the circular approach has

has resulted in new business models being developed for revamping each stage of the value chain of a garment.

While the group is far from their ambitious goals, their existing supply chain and circular initiatives serve as a work-in-progress blueprint for other industry players to build upon for a sustainable future in the garment industry.

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H&M collects 3,500 tonnes of old clothes in one year

Over one million tonnes of UK textiles go to landfills annually but we running out of landfill space and it is a waste.

One high street label has become the first fashion company to institute a global garment collecting initiative: H&M encourages its customers to see their old garments as a resource.

It has set up a collection scheme for customers to bring unwanted clothes to its stores across all 53 of its markets. The clothes can be any brand and in any condition. In just over a year, H&M has collected over 3,500 tonnes of old clothes – enough fabric to make 15m T-shirts.

The collected clothes are separated in three groups. The first group – rewear – is for clothing that can be worn again, sold second-hand.

The "reuse" group is textiles that are no longer suitable to wear but can be up-cycled into other products.

And, finally, the "recycle" group is for textiles that cannot be reused, but can be turned into textile fibres or used to manufacture different products.

By collecting used garments, H&M contributes to reducing textile waste and is turning old fibres into new yarn. Recycled textiles decrease the use of raw materials – like water and oil – which are needed to produce fibres such as cotton and polyester. Ideally the company would like to create new clothes from the collected garments.

For each kilogramme of clothes the company collects, €0.02 (£0.016) is also donated to a local charity, chosen by H&M in each of its markets. In addition, revenue from the garment collection programme will be invested in textil recycling technology and other social projects.

Nicolette Fox is part of the wordworks network

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The only trends worth following? Recycling and repairing.

Our Garment Collecting programme is the world’s biggest of its kind. It was rolled out globally 2013.

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Top H&M Marketing Campaigns: Case Study on Marketing Campaigns of H&M

• Brand Campaigns

Top Adidas Marketing Campaigns: A Case Study on marketing campaigns of Adidas

Unlock The Power of Augmented Reality in Offline Advertising

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H&M, also known as Hennes and Mauritz has become the most prominent fashion and clothing retailer in India, surpassing even ZARA. Over the years, this multinational brand has made a strong presence in the household name thanks to its social-centred and savvy marketing campaigns. 

The key element and a major feature to point out of H&M’s advertising and marketing approach is its continuous focus on sustainability, inclusivity, diversity, awareness, etc. H&M is also known for being involved in campaigns that show the brand being environmentally conscious. Also, collaborating with high-profile designers in its marketing campaigns is another aspect of H&M’s branding strategy.

The company, being a sustainable and fast-fashion clothing retailer, along with featuring eminent collaborations shows its trendsetting characteristics that people can afford. Let’s take a close look at this case study of the marketing campaigns of H&M that makes it one of the most significant clothing retailers in the world. 

What is H&M?

Hennes and Mauritz, popularly known as H&M is a Swedish clothing company for men, women, and children. Founded in 1947 by Erling Persson, the company operates in over 75 countries. Presently, H&M has more than 4800 stores all over the world under the CEO, Helena Helmersson.

The brand is preferred by all sections of society due to the versatility of its products. Meaning, the H&M stores, usually have clothing for all ages, sizes, body types, ethnicities, etc. Moreover, the brand has launched a line of gender-neutral clothing and accessory options to attract a wider audience.

It is important to notice that H&M has always been seen as a brand that is responsible towards society and the environment by taking inclusive initiatives, carrying out diversity campaigns, committing to reducing the carbon footprint, and promoting better manufacturing practices. These are some of the reasons why a larger audience considers the brand reasonable and appreciates its quality.

Why does H&M do marketing?

Like every other company in the market, H&M also has similar needs when it comes to marketing and branding, i.e, to introduce the brand and its products to the market and the audience, increase sales, and increase its customer base. And it can be seen that there is cutthroat competition in the clothing industry as the world is getting more fashion-conscious by the day.

Since the brand, unknowingly, plays an integral part in people’s lives, a certain amount of expectations and societal pressure falls upon the company. And, that’s why the business needs marketing campaigns showing its concern and responsibility towards society. H&M’s branding strategies have always been centred around appealing to customers by displaying their moral values and ethics.  

Top Marketing Campaigns (Offline) Case Study: H&M 

Here is a list of the top offline marketing campaigns of H&M that have made the brand what it is today, one of the top clothing retailers in the world. 

H&M Conscious

This is a very smart and efficient marketing campaign that along with profiting its brand, also creates awareness among people about shopping consciousness. H&M proposed an idea of reducing the carbon footprint, reducing, reusing, and recycling cloth materials. The Conscious collection is made from at least 50% sustainably sourced and organic materials.

In order to encourage customers to buy into the campaign, the stores reward them with conscious points when they purchase from the collection. Moreover, H&M has come up with a solution in the form of a machine called, ‘Looop’ that shreds old and worn clothing materials into new garments in over five hours. It is an H&M advertising tactic to advertise the quality of their products and make sure that people trust the manufacturing process.

H&M launched this campaign with the release of a short film, called “Bring It!”, where the brand tries to encourage people to submit old and worn clothes to H&M stores. To make the campaign seem more credible, the film depicts the journey of the clothes that are collected in the stores and how their lifespan can be increased for as long as possible.

People are free to bring any type of clothes and textiles of any fabric from any brand. And for every bag of clothes, the customers get a certain amount of voucher and discount for their next purchase. This strategy came out as a success as the company was able to collect over 40,000 tonnes of clothing material since its launch. Also, the target has been set to collect 25,000 tonnes per year by 2020. 

Close The Loop

This campaign was an extended form of the “Bring It!” campaign, in which a collection is launched comprising garments made up of recycled materials. The collected clothing items from the “Bring It!” campaign are later categorized into three categories: re-wear, reuse, and recycle. All three categorized clothing are properly made use of and submitted to form a new line of clothing, called “Close the Loop”.

Another key element of this campaign was “repairing”, which centres on the idea of taking proper care of your clothes so that they last longer. A program named “Take Care” has been introduced in all retail stores where people can go and learn how to correctly treat their garments. 

The motive of the campaign is to keep fashion i.e, clothes and textile items in a closed loop by reusing and recycling them over time. Knowing the fact that the collection is made out of their own old clothes is what appeals to the audience and makes this marketing campaign a huge success. 

Brighter Than Ever

This campaign was launched to celebrate the festive season. A collection called by the same name “Brighter than Ever” was introduced featuring vibrant and shiny western wear and home decor. This stylized campaign included a festive colour palette, focusing on hot electric and warm shades, sequinned designs, fringes, and shimmers.

Since this campaign was specially planned for the Indian audience, a lot of Indian celebrities like Manushi Chillar, Shantanu Maheshwari, Isha Talwar, Jim Sarbh, and more were featured. These high-profile personalities are very prominent and popular among the target audience, particularly, the GenZs. One key element of this H&M marketing campaign was that all the Home Decor items and most of the garments were 100% made in India to appeal to the customers.

The whole vibe and display of this marketing campaign were designed in a way that shouts festivity in the Indian style. The H&M advertising and branding were made visually appealing and attractive to get the audience into the festive feel, and needless to say, the strategy worked out well.

Love for All

This campaign was launched during the start of the Pride Season to promote the message of love, equality, and self-expression. A new collection of clothing, named “Love for All” was introduced in celebration of Pride month. The key factor of this campaign was to donate 10% of the sales price from the line to the UN Free and Equal, the United Nations Human Rights Office. 

Since this organization is running a campaign supporting sexual orientation and gender identity, the “Love for All” marketing campaign of H&M was also considered to be a part of this social activity. And this is what attracted the audience toward it and increased its sales, especially from this collection.

ONE/SECOND/SUIT

This “One/Second/Suit” marketing campaign is basically about rental service, where men can rent ready-to-wear suits for free for 24 hours. This marketing campaign of H&M was solely focused on men’s wear branding. 

The entire idea of this campaign was to rent suits to job interviewers so that they can make an impression in just one second. H&M got a good amount of recognition for this initiative to help the young generation to build confidence and make an effective first impression. Along with this, assistance for improving professional image is provided to all the shoppers. 

This H&M marketing campaign also came out as a feasible and affordable idea because people no longer have to buy a whole new suit just for an interview. And since they get introduced to the products personally, it also works as a marketing agenda to lure them toward the brand.

In conclusion, the marketing campaigns of H&M shout loudly about social responsibility, sustainability, and minimalism. The idea is majorly centred on promoting and supporting social causes. All the marketing strategies are made in a way that speaks to the conscience of the target audience and subconsciously lures them into making purchases from the brand, feeling good about it. Overall, H&M’s advertising strategies and campaigns have kept up with their social image as well as their sales.

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Contemporary Case Studies on Fashion Production, Marketing and Operations

• © 2018
• Pui-Sze Chow 0 ,
• Chun-Hung Chiu 1 ,
• Amy C. Y. Yip 2 ,
• Ailie K. Y. Tang 3

Centennial College, Pokfulam, Hong Kong

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Sun Yat-Sen University, Sun Yat-Sen Business School Sun Yat-Sen University, Guangzhou, China

City university of hong kong, kowloon, hong kong.

• Comprises case studies on contemporary practices and issues in fashion business
• Documents real-world practices in fashion business from production, marketing to operations
• Serves as a nexus of theories and practices to approach challenges in the fashion industry nowadays
• Advances knowledge for both the academia and the private sector in fashion business
• Includes supplementary material: sn.pub/extras

Part of the book series: Springer Series in Fashion Business (SSFB)

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Table of contents (13 chapters)

Front matter, cases on fashion production, usa apparel manufacturing and domestic sourcing.

• Carol Elizabeth Harris

Product Development Process of an International Luxury Fashion Brand: Implications to Hong Kong Fashion Trading and Manufacturing Companies

• Yi-Ning Fung, Tsan-Ming Choi

Application of Laser Technology in Fashion Industry

• Guoxiang Yuan, Zhuoming Chen, Domenico Luzzi

Cases on Fashion Branding and Marketing

Vintage fashion retailing: building the store brand.

• Julie McColl, Catherine Canning, Linda Shearer, Louise McBride

The Internationalization of Italian Luxury Brands. The Missoni Case

• Andrea Runfola, Silvia Ranfagni, Simone Guercini

Luxury Branding and Digitalisation: The Case of European Brands in China

• Serena Rovai

Good Practices and Considerations in Conducting Email Survey for Fashion Retail Industry

• Chi Wai Wu, Kwok Fai Geoffrey Tso

Cases on Fashion Retailing and Operations

The key role of retail stores in fast fashion companies: the h&m case study.

• Elisa Arrigo

Fashion Business Case Study on the German Click & Collect Situation

• Peter Bug, Natalie Gordon, Ann-Sophie Staudenmaier

Supply Chain Strategic Fit: Two Fashion-Renting Cases

• Xiangyu Lai, Shiting Song, Yaqing Xu, Chun-Hung Chiu

Cases on Sustainability and Fashion Industry

Sustainable innovation in the apparel supply chain: case study on tal apparel limited.

• Jiyoung Kim, Marissa Zorola

Sustainable Development in the Supplier Chain: Analysis of a Brazilian Fashion Retailer’s Social Responsibility Program

• Rita de Cássia Lopes Moro, Francisca Dantas Mendes, João Amato Neto

Towards Closed-Loop Fashion Supply Chains—Reflections from Retailer-Facilitated Used Apparel Collection Programs

• Pui-Sze Chow, Cinty K. Y. Li

Back Matter

• Case Studies in Fashion Business
• Contemporary Practices in Fashion Industry
• Sustainable Practices in Fashion Business
• Branding and Internationalization of Fashion Brands
• Retail Operations in Fashion Business
• textile engineering

About this book

Editors and affiliations.

Pui-Sze Chow, Ailie K. Y. Tang

Chun-Hung Chiu

Amy C. Y. Yip

About the editors

Bibliographic information.

Book Title : Contemporary Case Studies on Fashion Production, Marketing and Operations

Editors : Pui-Sze Chow, Chun-Hung Chiu, Amy C. Y. Yip, Ailie K. Y. Tang

Series Title : Springer Series in Fashion Business

DOI : https://doi.org/10.1007/978-981-10-7007-5

Publisher : Springer Singapore

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : Springer Nature Singapore Pte Ltd. 2018

Hardcover ISBN : 978-981-10-7006-8 Published: 12 December 2017

Softcover ISBN : 978-981-13-4984-3 Published: 09 February 2019

eBook ISBN : 978-981-10-7007-5 Published: 04 December 2017

Series ISSN : 2366-8776

Series E-ISSN : 2366-8784

Edition Number : 1

Number of Pages : XIV, 243

Number of Illustrations : 10 b/w illustrations, 23 illustrations in colour

Topics : Market Research/Competitive Intelligence , Textile Engineering , Production , Supply Chain Management

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