ABSTRACT Title: H&M fast fashion business model in China Level: Bachelor Degree in Business Administration Author: Yuanyuan Yang & Jun Wang Supervisor: Ernst Hollander Date: 2013-03-11   Aim: Business model have been applied to different industries, and many entrepreneurs consider a good business model to be half the success. As per our observation, there were problems existing in H&M in China, for example, quality problem, price advantage lost and so on. However, H&M still has a good sale performance in China and we believed it largely depends on its successful business model. This study aims to examine what H&M fast fashion business model is and how H&M’s business model influences its development in China in different period.   Method: The method we used consisted of research process, research approach and data collection. A qualitative research was developed in the way of interviews. Primary data was collected from the interview which we conducted with two interviewees of H&M employees from different countries and the other interviewees both work for Chinese fashion industry. Secondary data included relevant extant literature, articles and online resources. As a research tools, SWOT was used to analyze the operation of H&M in China. With the collected data and the previous analysis, the result presents H&M’s short-term, mid term and long-term development in China.   Result & Conclusion: The unique business model is the main reason H&M have such good sales performance even when they have many problems as we had observed from their retail stores in China. H&M makes good use of its supply chain and information system to ensure delivering right products to their customers in the right time and at the right place with the right price. We believe the strengths of its business model would bring a lot of benefits for H&M in short-term development and mid-term development in China. As for the long-term development, the weaknesses of its business model maybe bring some problems.   Suggestions for future research: Quality problem and supply chain pollution is important for H&M’s long term development in China. Therefore, to ensure products’ quality and supply chain management improvement could be studied in future. Moreover, since business model consisted by lots of aspects, in-depth study is necessary in order to better understand H&M business model. Last but not the least, Chinese local fast fashion industry is still on the initial stage and thus, to borrow idea from H&M’s business model to develop Chinese fast fashion industry is interesting and important to be studied in the future.   Contribution of the study: Fast fashion business model have been created based on the business model and fast fashion characteristics. Hopefully, it would be helpful for further study which focuses on fast fashion industry. The specific knowledge of China is able to compensate the situation that most studies are focus on developed countries.   Key words: fast fashion in China, H&M in China, clothing industry, fast fashion business model, China

The fast fashion industry is considered to be the second most polluting industry in the world, facing many challenges regarding environmental sustainability. Due to the rising interest and awareness in environmental sustainability, this study was conducted to discover how fast fashion companies make decisions regarding environmental sustainability and how these decisions are affected by the fast fashion business model. A qualitative case study approach was employed, focusing on the Swedish activewear brand Stronger as the case study company. An in-depth interview was conducted with the company to gain valuable insights into the relationship between the fast fashion business model and firms decisions related to environmental sustainability. The analysis of the data revealed key themes and patterns, highlighting the challenges, opportunities, and potential strategies for firms aiming to incorporate environmental sustainability into their operations within the fast fashion industry. The findings indicated that the fast fashion business model contradicts the principles of environmental sustainability, requiring significant modifications to align with sustainable practices. Based on the findings and analysis, it was also concluded that the firms’ decisions are influenced by the fast fashion business model, however it is possible to make decisions that prioritize environmental sustainability despite the constraints of the business model.

The aim of this thesis “Deconstruction 3.0” is to show how the third wave of deconstruction in fashion is deconstructing the second [postmodern] French luxury fashion system. The deconstructionists of the post-Soviet collective – Demna and Guram Gvasalia, Gosha Rubchinskiy, and Lotta Volkova – question and deconstruct the established apparatus of the postmodern fashion system and its business model. With their business strategies and with help of demand by post-postmodern consumer culture proposed and predicted by Douglas B. Holt (2002), the post-Soviet collective constructs new business models and thus we are entering a post-postmodern fashion system. I have used a twofold methodology from the disciplines of business administration and humanities. In the literature review, I have aimed to close gaps between different scholars and made a concluding section of the postmodern fashion system and its business model, a synthesis that lies in parallel with Peter Drucker’s (1957) thoughts on postmodern organisational theory. Through the empirics and analysis with help of Jacques Derrida’s (1972) concept of deconstruction, I propose, in the end, a dialectic model between the established postmodern apparatus and the new and diametrically opposed post-postmodern apparatus operated by the post-Soviet collective.

Som en reaktion mot fast fashion-rörelsen och de oansvariga konsumtionsmönster som den medför har slow fashion uppstått som ett mer hållbart alternativ i modebranschen. Slow fashion beskrivs ofta som mode av hög kvalitet med en tidlös design vars syfte är att sakta ner flödena och minska konsumtionen. Tidigare studier beskriver slow fashion som koncept och några incitament och barriärer för att arbeta med slow fashion. Dock saknas en konkret definition av slow fashion-affärsmodellen och dess ingående komponenter. Det finns också ett gap mellan teorin och den praktiska tillämpningen av slow fashion-affärsmodellen, vilket gör detta till ett intressant perspektiv att undersöka. Därför är syftet med denna studie att bidra med ökad förståelse kring möjligheterna med slow fashion-affärsmodellen för modeföretag. Slow fashion-affärsmodellen definieras baserat på tidigare litteratur om affärsmodeller och slow fashion-konceptet. Detta presenteras som en modell med fyra komponenter: värdeerbjudande, värdeskapande, värdeleverans och värdelogik. Jämförelsen mellan denna definition och affärsmodellerna för sju modeföretag visar att det finns många möjligheter kopplade till slow fashion-värdeerbjudandet. I vilken utsträckning de andra komponenterna i slow fashion tillämpas i praktiken beror på företagets målgrupp, ägarstruktur och hur hållbarhet är förankrat i organisationen. När det gäller intressentperspektivet på slow fashion-affärsmodellen visar studien att myndigheter och beslutsfattare har störst möjligheter att möjliggöra slow fashion-affärsmodellen, genom att påverka både modeindustrin och konsumenterna. På grund av aktieägarnas inflytande över modeföretagens långsiktiga strategi kan de vara en drivkraft om hållbarhet prioriteras av dem. Andra intressenter kan agera som möjliggörare för tillämpningen av slow fashion-komponenter på grund av sitt potentiella intresse för hållbarhet och minskad konsumtion.Studiens syfte besvaras med följande propositioner: Proposition 1: Det finns en marknad för slow fashion-värdeerbjudandet men det saknas incitament för att tillämpa affärsmodellen fullt ut. Proposition 2: Konkurrenskraften i slow fashion-affärsmodellen ligger i värdeerbjudandet, inte i priset. Proposition 3: En styrka i slow fashion-affärsmodellen är dess lönsamhetspotential, vilket kan gynna ägare och investerare. Sammanfattningsvis visar studien att det finns potential när det gäller efterfrågan, konkurrenskraft och lönsamhet i slow fashion-affärsmodellen. Det finns dock begränsade incitament för modeföretag att tillämpa alla komponenter i affärsmodellen i sin verksamhet. Det finns också indikationer på att efterfrågan på mer långvariga kläder kan öka i framtiden. För tillfället verkar dock behovet av variation fortsätta vara starkt. / As a reaction to the fast fashion movement and the irresponsible consumption patterns derived from it, slow fashion has emerged as a more sustainable option in the fashion industry. Slow fashion is often described as fashion of high quality with a timeless design that aims to slow down the product flows and reduce consumption. Although previous studies describe slow fashion as a concept and some of its general incentives and barriers, a concrete definition of the slow fashion business model and its components is missing. There is also a gap between the theoretical and practical application of the slow fashion business model. The practical application is greatly influenced by different stakeholders in the fashion industry, which makes it an interesting perspective to study. Therefore, the aim of this study is to provide a deeper understanding of the possibilities with the slow fashion business model for fashion companies. The slow fashion business model is defined based on previous literature on business models and the slow fashion concept. This is presented in a model of four components: value proposition, value creation, value delivery, and value logic. The comparison between this definition and the business models of seven fashion companies, shows that there are many possibilities connected to the slow fashion value proposition. The extent to which the other slow fashion components are applied in practice depends on the company’s target customers, owner structure and how sustainability is embedded in the organization. Regarding the stakeholder perspective on the slow fashion business model, the study shows that public authorities and regulators have the largest possibilities to enable the slow fashion business model by influencing both the fashion industry and consumers. Due to the shareholders’ say in the long-term strategy of fashion companies, they could be a driving force if sustainability is prioritized among them. Other stakeholders could act as enablers to the application of slow fashion components, because of their potential interest in sustainability and reduced consumption. The aim of this study is answered with the following propositions: Proposition 1: There is a market for the slow fashion value proposition but incentives for full application of the business model are missing. Proposition 2: The competitiveness of the slow fashion business model lies in the value proposition, not the price. Proposition 3: A strength in the slow fashion business model is its potential for profitability, which can benefit shareholders and investors. In conclusion, the study shows that there is potential regarding demand, competitiveness and profitability in the slow fashion business model. However, there are limited incentives for fashion companies to apply all of the components in their operations. Also, there are indications that the demand for more long-lasting clothing might increase in the future. At the time, however, it seems the need for variation will continue to be strong.