Forecasts tell us that H&M will close the current year with a 6% growth. The Swedish fast fashion giant has been fighting with Spanish Inditex for many years to become the number one in the segment. 2019’s sales were positive, as while the company’s income statement will be released this coming January 30th, H&M communicated its revenue grew by 6%. Sales will be of about 232.7 billion Swedish crowns (about 22.2 billion euro).
According to the Sweden-based group, the fall results could have been even better, but Black Friday came late and the revenue from the sale event are still to be added to the statement. H&M estimates there are 48 additional million euro to be added to the “sales” voice.
Le Figaro is the first to notice the implicit paradox that is part of H&M’s great performance. The group is focusing on Asia for its growth plan, but its reference markets are Europe and America, where “super-consumerism” isn’t well perceived by the public. We are in the middle of a period in which sustainability ahs been re-discovered. Being green has become imperative (for marketing as well). 2019 is Greta’s year, the year of her Fridays for Future initiative. But the “consumer is more complex than we care to admit – explains Yohann Petiot, general director of Alliance di Commerce (retail association in France) to le Figaro -. Consumers are open to buy both second-hand items and fast fashion ones. It does pay more attention to the planet, that is true, but when talking about fashion the only two aspects that matter are price and style”.
Image from H&M