Fast Fashion | Dress for Excess | 4

Business Wars

Wondery

History, Business, David Brown, Management

4.6 • 13.2K Ratings

🗓️ 11 October 2021

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

It’s 2018, and H&M is drowning in billions of dollars worth of unsold inventory. Brick and mortar stores are struggling. But on the internet, Shein is thriving, capitalizing on social media trends to get desirable, ultra-cheap clothing made and into customers’ hands in a matter of days.

And once the head of the pack, Topshop is at risk when Philip Green is very publicly accused of abuse, racism, and sexual harassment. Forever 21 finds itself in a heap of trouble too.

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Transcript

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0:00.0	Hey, prime members, you can listen to business wars, add free on Amazon music.
0:04.8	Download the app today.
0:08.1	February 2018, Stockholm, Sweden.
0:21.3	H&M CEO Carl Johan Persson enters a cavernous warehouse.
0:26.4	He's joined by Helena Helmerson, the company's head of sustainability.
0:31.7	Their footsteps echo on the concrete floor.
0:35.1	It's late, and the staff has gone home for the day.
0:39.6	As they flip on the lights, they see Florida ceiling metal shelves stacked with hundreds
0:44.4	of cardboard boxes.
0:46.5	Inside are t-shirts, jeans, dresses, accessories.
0:51.5	The two executives are looking at a massive backlog of inventory.
0:57.2	Persson turns to Helmerson.
0:59.4	Just look at all these boxes, or warehouses, or full of boxes like these.
1:05.0	Four billion dollars worth of clothing that's not selling.
1:10.0	Helmerson opens a box and flips through the t-shirts inside.
1:13.7	Why don't we supposed to do with all of it?
1:16.2	We've already been putting things on clearance.
1:18.8	If we keep marking down merchandise, our investors won't be happy.
1:23.3	Persson rubs his forehead.
1:25.3	Weary.
1:26.3	And last year, our sales were down more than 60%.
1:29.3	Here's our worst year in nearly two decades.
	...

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