Apparel Online Bangladesh Magazine Magazine May 2018 | Page 71

WORLD WRAP
H&M
in Brief
• H&M’s vision is to
achieve a circular
business model and to
get there, it requires
radically decreasing
the use of virgin raw
material and carefully
monitoring the
usage of resources.
The ambition is a
process where nothing
is wasted; where
garments are collected
and recycled into new
collections so that the
material that’s already
in the system is reused
instead of new raw
materials.
investing in analytics technology to
improve its supply chain, following
the example of its biggest rival Zara,
which is renowned for its supply
chain management.
In the backdrop of fast changing
consumer and market dynamics, the
last year was a very difficult year
for H&M. While on one hand, footfall
was declining, the company was also
at the centre of a storm when an
advertisement featuring a black child
wearing a hoodie that read ‘coolest
monkey in the jungle’, came under
sharp criticism. The image ignited
widespread protests and backlash on
social media. H&M had to hurriedly
issue an apology for the ad, but the
harm was done. The company, usually
seen as a sensitive company with
sustainable growth at its foundation
was suddenly being boycotted.
Addressing shareholders, post the
declining results, Chief Executive
Karl-Johan Persson warned that the
year ahead would also be difficult.
“The industry changes are challenging
everyone and this will continue in
2018,” he said, adding that H&M does
not expect to reach a target of local-
currency sales growth of 10 to 15 per
cent this year.
• The second aspect is
social responsibility.
The textile industry is
largely based in highly
complex markets,
such as Cambodia and
China, where awareness
of social issues is a
major challenge. To
give the textile workers
better conditions, H&M
implements fair living
wages, strengthens
unions and works to
improve the dialogue
between workers and
employers.
• H&M focuses
on increasing
transparency on its
products, production
and sustainability
performance. Knowing
how and where
something is produced
is crucial. Not just
to work towards
improvement, but also
to make it possible for
customers to make
sustainable choices in
their everyday lives.
Mall vacancy rate
continues to rise in
USA
The vacancy rate in the shopping malls across the United States
has gone up by 8.4 per cent in the first quarter of 2018 as compared
to 8.3 per cent in the fourth quarter of the previous fiscal year.
This vacancy rate is the highest since the fourth quarter of 2012,
revealed a report released by Reis Inc., which is engaged in providing
commercial real estate market information and analytical tools.
At least 77 metropolitan areas were covered in the survey to find out
the mall vacancy scenario in the US. The inkling vacancy in shopping
malls has started taking a toll on the retail business jobs in the
country as well. In addition to malls, the vacancy was also reported
in neighbourhood and community shopping centres. At least 41 of the
77 areas reported vacancy during the 12 months ending on March 31,
2018.
The mall vacancy rate is increasing majorly due to the rising
fascination towards e-retail among consumers. The e-commerce
wave has started sweeping those who were in mainstays of these
shopping areas, the report highlighted.
Over time, offline stores noted a significant decline in footfall as
a good number of consumers are inching more towards online
shopping. Many of the retailers in the past year filed for bankruptcy
which led to a drop in new employment opportunities in the US.
For instance, leading American fashion retailer Ma