H&M lists the following as significant risks to its business: Fashion: As fashion has a limited shelf life and as not all collections are a success with customers, operating in the industry is a risk. Furthermore, even though fashion has become increasingly global, shopping tastes and patterns can vary between different markets. Also, the start of a season and its length can vary from country to country. There is always a risk that clothing cannot be delivered in the right quantities, sizes and mix of products to meet demand in each store. The risk is exacerbated by the long lead times needed to produce and deliver garments from factory to store. Weather: Normal weather patterns are the basis for H&M’s product purchases. Any deviations from normal weather conditions, such as transitions between seasons, will affect sales.
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- Risk, Resilience and Recovery
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- Chapter 13