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We ensure the best price by:

• having few middlemen

• buying large volumes

• having a broad, in-depth knowledge of design, fashion and textiles

• buying the right products from the right market

• being cost-conscious at every stage

• having efficient distribution

H&M is driven by strong values such as simplicity, continuous improvement, team spirit, cost-consciousness and entrepreneurship. H&M’s own designers interpret fashion trends and create fashions that are accessible to all. The stores are revitalised daily with new items.

Quality is a central issue, from the idea stage all the way to the end customer. The quality work includes extensive testing, as well as ensuring that the goods are produced with the least possible environmental impact and under good working conditions.

H&M does not own any production factories. Production of goods is outsourced to independent suppliers, primarily in Asia and Europe, through H&M’s local production offices. Nor does H&M own any of its stores. Instead H&M rents store space from international and local landlords.

Growth target

H&M’s growth target is to increase the number of stores by 10 – 15 percent per year, while increasing sales in comparable units. The growth, which will be financed entirely with the company’s own funds, will proceed with an emphasis on quality and continued high profitability.

Today, H&M has around 87,000 employees in 40 countries. Target growth is 10-15 percent new stores every year.

Words that are key to continued expansion are responsibility and commitment: for H&M to have committed co-workers who have the courage to delegate responsibility at all levels. If co-workers don’t grow, H&M doesn’t grow.

When H&M opens on a new market, it always recruits locally. During the start-up period, new employees are supported by more experienced co-workers. The first Japanese co-workers, for example, spent some time in stores in Norway and Hong Kong. During...