H&M Mission Statement

Company: H & M Hennes & Mauritz AB
CEO: Daniel Ervér
Year founded: 1947
Headquarters: Stockholm, Sweden
Number of Employees: 96,460
Type: Public
Ticker Symbol: HM.B
Market Cap (Mar 2025): $188.56 Billion
Annual Revenue (FY 2024): SEK 234.478 Billion ($23.06 Billion)
Profit | Net income (FY 2024): SEK 11.584 Billion ($1.106 Billion)

Did you know? H&M is the world’s second-largest clothing retailer after Zara’s owner Inditex.

H&M Group is a prominent fashion and design company founded by Erling Persson, having a Global presence. The Group’s brands include H&M, COS, Monki, H&M HOME, Weekday, Other Stories, ARKET, and Sellpy. Each adheres to H&M’s mission, vision, values, and sustainability goals, ensuring growth and success companywide. The company had 4,300 stores in 77 countries and online sales channels in 60 markets as of 2024. In 2025, H&M announced plans to open its first store in El Salvador and Brazil. The company already operates in several Latin American countries, including Mexico, Peru, Uruguay, Chile, Colombia, the Dominican Republic, Ecuador, Guatemala, Panama, and Costa Rica. [1]

H&M is renowned for its fast-fashion business model. It offers clothing, shoes, accessories, and homeware through retail stores and online platforms. In FY2024, H&M Group generated SEK 234.478 billion in annual revenue, up 1% from 2023. Its profit increased 33% to SEK 11.584 billion. [2]

Checkout: Largest Global Clothing manufacturer companies in the world

To understand why H&M dominates the fast fashion sector, here is an in-depth analysis of its mission statement, vision, values, and sustainability goals:

H&M’s Mission Statement

To offer fashion and quality at the best price in a sustainable way. [3]

Here is our analysis of H&M’s mission statement:

1. Provide trendy fashionwear

H&M strives to provide trendy, fashion-forward products. The company achieves this goal by refreshing its collections seasonally or yearly. For example, H&M Studio unveiled its latest SS25 collection in Mar 2025 during Paris Fashion Week. The SS25 line is inspired by the 1980s woman who knows how to work and play hard. Its stylish pieces featured sporty details, focusing on the waistline and shoulders. [4]

H&M is a global fast-fashion leader. However, the company faces stiff competition from Zara and online powerhouse Shein. In Jan 2025, H&M started refining its strategy to regain its stature in the fast-fashion world. The company is banking on trendy collaborations to attract style-conscious young people from its rivals. It has partnered with celebs like Charli XCX to promote its trendy collections to young, fashion-forward women. [5]

2. Deliver high-quality products

H&M aims to design high-quality fashionwear, shoes, homeware, and accessories. The fast-fashion giant never compromises product quality. Daniel Ervér spearheaded investments in his first year as CEO to boost the H&M brand’s appeal and hasten product development to regain market share from competitors. In Jan 2025, CEO Ervér announced plans to pivot H&M to compete on fashion and quality instead of price.

CEO Ervér’s strategy can help H&M outpace rivals like online-only retailer Shein. Shein has aggressively undercut H&M and Zara with ultra-low pricing for dresses, tops, jeans, and accessories. “H&M cannot win on price alone and must make its clothes more trendy and of higher quality in the fiercely competitive fast-fashion sector,” CEO Ervér told Reuters. H&M plans to shorten its supply chain and speed up its design process without compromising quality. [6]

3. Offer the best prices

H&M aims to be the go-to fast-fashion provider for budget-conscious consumers. Fulfilling this mission can help the company outperform competitors like Shein and Zara. In Mar 2024, H&M announced price cuts across categories. It is one of the cheapest fashion options on the European and UK high streets. For example, UK customers can buy tops for £3.99, dresses for £9.99, and shoes for £12.99 at the Group’s flagship H&M brand. H&M offers affordable, fashion-forward products by streamlining its supply chain processes and reducing overhead costs. These strategies allow the Group to lower production expenses without compromising quality. [7]

4. Manufacture products sustainably

H&M strives to differentiate itself from rivals by prioritizing sustainability over profits. It is committed to manufacturing products sustainably. This mission can help the company poach eco-conscious consumers from competitors with poor sustainability records. In 2023, H&M announced that it would no longer procure new down feathers for its products. The fashion retailer sourced about 90% of the down and feathers used in its items from recycled materials as of Oct 2024. It plans to rely 100% on post-consumer recycled down and feather sources by Dec 2025. [8]

Image Credit: SJ

H&M’s Vision and Strategy

“Lead the change.”

H&M’s vision is to be the pioneer to lead the change. This vision has guided the flagship H&M brand since its first day in 1947. H&M’s vision-driven strategy has several elements that help advance its mission. The company aims to lead the change by scaling innovation, promoting transparency, collaborating for industry-wide progress, and supporting a circular fashion industry. [9]

Although H&M is a dominant fast fashion player, it is losing market share to emerging players with cheaper price points. As of June 2021, Shein led the sector with 28%, followed by H&M at 20% and Zara at 11%. H&M integrated sustainability into its business model to differentiate itself from rivals. For example, the company launched the H&M Conscious Collection in 2012 to offer clothing made from eco-friendly fabrics like hemp, organic cotton, and recycled polyester. It has also invested in sustainability initiatives like Loop, Color Story Collection, and ReWear. These programs showcase H&M’s commitment to minimizing its environmental impact. [10]

H&M’s Values

H&M states, “Our values are the foundation of our culture.” Brands under H&M Group are guided and united by shared values. They define the company’s identity, what it stands for, and how it operates. These values fuel H&M’s entrepreneurial spirit, long-term perspective, and customer-centric culture. [11]

How does H&M live by its values?

1. We are one team

H&M values an inclusive and respectful workplace. The company urges employees to collaborate with colleagues and help each other to win together. It lives by this value by collaborating with designers, athletes, and celebrities. For example, H&M Move partnered with global football icon Zlatan Ibrahimović in 2024 to launch a co-developed training collection. This collaboration blends Zlatan’s sports expertise with H&M Move’s commitment to innovation and style. H&M also collaborates with Laureus Sport for Good to encourage youth to engage in sports. [12]

2. We believe in people

H&M strives to bring out the best in everyone and the business. It encourages employees to empower and trust others, take ownership, and embrace diverse perspectives. The Group lives by this value within and outside company walls. For example, H&M Move partnered with Women Win to empower girls and women through football. Local organizations involved in this 2-year partnership are based in Colombia, Costa Rica, Guatemala, Jordan, Mexico, South Africa, and the UK. H&M believes people have diverse skills, and everyone deserves access to opportunities. [13]

3. We are entrepreneurs

H&M has a strong business mindset and entrepreneurial spirit. Its team’s curiosity and creativity helped the company grab every opportunity and adapt to ever-changing customer needs. This value has guided the brand since its founding. For example, H&M was an early adopter of the fast-fashion model. This approach helped the company deliver new collections to consumers quickly and affordably, making it a dominant player on the high street. The brand responded promptly and appropriately to growing concerns about fast fashion’s environmental impact. For example, the company introduced clothing recycling programs and launched H&M Conscious. This collection is designed from sustainable materials to reduce carbon footprint. These efforts confirm H&M’s responsive business mindset. [14]

4. We make constant improvement

H&M values continuous improvement and development. The company strives to find better strategies to grow its business and move the fast-fashion industry forward. It seeks feedback to learn and adapt quickly. For example, in Oct 2024, H&M announced plans to leverage technologies to improve the customer experience. “All 12 stores in Manhattan will be fully rebuilt, refreshed, relocated, or brand new over the next few years,” said Michael Beaumont, head of expansion for H&M Americas. The move will elevate the customer experience, ensuring H&M improves and adapts to New York’s cut-throat fashion scene. [15]

5. We are cost-conscious

H&M creates value for money without compromising quality and sustainability. Its affordable prices make a sustainable lifestyle accessible to everyone. In 2023, H&M implemented cost-cutting measures to boost profits. The retailer combines tried-and-tested strategies to manufacture fashion-forward collections cost-effectively. For example, H&M reduces production costs by cutting overhead expenses and streamlining its supply chain processes. [16]

6. We are straightforward and open-minded

H&M values open, honest, and humble team members who reflect on their actions and listen to others. Although the company commits to its decisions, it also welcomes criticism. It is ready to change and adapt the best ideas. For example, in 2024, H&M stopped procuring new down feathers following PETA’s campaign. It learned from PETA’s criticism and changed its position to protect ducks and geese from a miserable life and a terrifying death. [17]

7. We keep it simple

H&M aims for simplicity and goes straight to the point. The Swedish retailer believes clarity helps its team focus on what matters. Its business model and design approach align with the minimalist approach (less is more). For example, H&M’s summer 2023 collection focused on refined simplicity with a touch of sparkle and shine. [18]

Checkout: Largest Clothing manufacturer companies in the world by market cap

H&M’s Sustainability Goals

H&M considers present and future generational needs. The Group prioritizes socioeconomic and environmental sustainability in its operations. It set ambitious goals to protect the planet and support all stakeholders. H&M’s sustainability goals and ambitions include:

Become net-zero by 2040.
Reduce absolute scope 1, 2, and 3 CO2e emissions by 56% by 2030 against a 2019 baseline.
Ensure 30% of materials sourced for commercial goods are certified recycled by 2025.
Use a 100% recycled or sustainably sourced materials for commercial goods by 2030.
Reduce plastic packaging by 25% by 2025 against a 2018 baseline.
Make 100% of packaging from recycled or sustainably sourced materials by 2030.
Ensure 100% of supplier factories are compliant with ZDHC Manufacturing Restricted Substances List by 2030.
Reduce absolute total freshwater use by 10 % by 2025 against a 2022 baseline. [19]

How is H&M progressing on its sustainability goals?

H&M’s sustainability strategy focuses on the climate, materials and resources, packaging, chemicals, water, fairness, and equality. As of 2023, the company had minimised the scope 1 and 2 emissions by 24% and scope 3 by 22%. 79% of its packaging is made from recycled or sustainably sourced materials. “As the world faces significant social, environmental, and economic challenges, continuing to deliver on our business idea and staying committed to our journey towards a more sustainable and circular fashion industry is more important than ever,” said Leyla Ertur, head of sustainability at H&M Group. [20]

H&M spent around SEK 2.1 billion on sustainably sourced materials and decarbonization of its supply chain in 2023. This investment helped advance its sustainability efforts. In 2023, H&M marked a 29% reduction in electricity intensity in its stores from a 2016 baseline, surpassing its 25% goal seven years early. [21]

H&M reduced plastic packaging by 55% by 2023 against a 2018 baseline, surpassing its 2025 goal of 25%. Its materials for commercial goods were 25% certified recycled and 85% recycled or sustainably sourced. In 2023, H&M partnered with Singapore-based DBS bank to launch the Future Supplier Initiative. This financing program helps suppliers access green loans for infrastructure investments and accelerate their decarbonization efforts. [22]

References

H&M (2025, Feb 5). El Salvador’s new H&M market. H&M.com
H&M (2025, Jan 30). H & M Hennes & Mauritz AB Full-year report 2024. H&M.com
H&M. Who We Are. H&M.com
H&M (2025, Mar 4). H&M Studio celebrates its SS25 collection during Paris Fashion Week. H&M.com
Finimize Newsroom (2025, Jan 31). H&M’s shifts strategy to outpace Fast-Fashion Rivals. Finimize.com
Reid, H. (2025, Jan 30). H&M must raise the bar to counter fierce fast-fashion competition, says CEO. Reuters
Adegeest, D. (2024, Mar 27). H&M cut prices and elevated retail as part of a new strategy. FashionUnited
Limmer, D. (2024, Oct 15). Is H&M on the Right Track To Make It Back to the Top? Retail Wire
H&M. Sustainability: Vision and strategy. H&M.com
Boyd, N. (2024, May 8). H&M: Moving Away from Fast Fashion. Ivey Business Review
H&M. About Us: Our values. H&M.com
H&M (2024, Dec 2). H&M Move and Zlatan Ibrahimović launched a co-developed training collection. H&M.com
H&M (2024, Apr 4). H&M Move and Women Win team up to promote gender equity through sports. H&M.com
Marrs, G. (2025, Jan 29). High Street Success Stories: H&M. TechRound
Moin, D. (2024, Oct 9). H&M gets Inventive with Evolving Retail Presence. WWD
Reid, H. (2024, Jan 30). H&M’s profit in the spotlight as cost-cutting gathers pace. Reuters
PETA Staff (2024, Oct 7). A Victory for Birds! H&M Bans New Down Feathers Following PETA Campaign. PETA.org
H&M (2023, May 15). Refined simplicity: H&M welcomes Summer 2023 in style. H&M.com
H&M (2024, Mar 26). Sustainability: Goals and ambition. H&M.com
Howlett, E. (2024, Mar 27). H&M Group releases sustainability progress report. Drapers Online
H&M (2024, Mar 27). Sustainability Disclosure 2023. H&M.com
Stroh, K. (2024, Jul 19). H&M’s green financing tool supports supplier sustainability. Supply Chain Dive
Featured Image by Fernand De Canne
Showroom Image by SJ

H&M Mission Statement