Is a Price Rise Evitable for H&M?
Fast-fashion retailer H&M made a name for itself by providing on-trend pieces for a fraction of the cost that high-end designers would charge. The problem is, that fast fashion comes at a price, namely the conditions that workers in their supplier factories are working under.
To do their part to improve the conditions, the Swedish retailer outlined how it will pay the garment workers, which could entail a rising the price of their clothing.
“We don’t think this strategy will result in a price increase for our customers,” a rep for H&M told Fashionista. “It is an investment in our customer offering and will benefit H&M long term. It is important to remember that the wages are only one of several factors that influence the sourcing costs and the prices in our stores. We also believe that this will lead to more stable production markets, with better efficiency and productivity. Long term this will be profitable for both us and our supplies.”
Time will tell who this will truly effect the consumers but this is a very big, not to mention, important step for the retailer.