H&M Supply Chain Strategy - Successful Retail Inventory Control (2024)

Indeed, the production rate of H&M's retail inventory is elevated by its heavy dependence on outsourcing from design to production. Although H&M’s core operation relies on its designers, creative directors, and pattern makers to stay on top of the latest trends, it also uses the services of fashion trend forecast companies such asWorth Global Styles Network (WGSN). As a fast-moving retailer, it takes on an innovative direction in determining consumer interests through both traditional analysis and experimental augmented-reality technologies.

With customer-driven reports of future trends in hand, H&M creates collections that strike a good balance between latest trends and the basics. Street fashion, haute couture, trends from the '50s and clean lines from the '60s are examples of a few recent avenues of inspiration for the H&M team as well. "We get inspiration from everywhere, but the most important thing is to make it your own way," says Van den Bosch. However, while the brand is international in its persona, it certainly holds the Scandinavian trait of being democratic and practical.

And democratic it is in terms of price tags. With H&M's range of baby-doll dresses, printed silk blouses with fashionable leggings, and drainpipe jeans available at uniform, egalitarian prices. What's behind the brand's economical prices? That's where its manufacturing game plan comes in.

H&M Supply Chain Strategy - Successful Retail Inventory Control (2024)
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