H&M in China
Case number:
A03-21-0013
Abstract
In March 2021, the Chinese government blocked access to H&M on leading e-commerce, ride-hailing, daily-deals, and map sites. The online blocking and calls for customer boycotts were in response to H&M’s September 2020 statement that it would no longer source cotton from Xinjiang because of concerns about forced labor. At the time, H&M operated more than 500 stores in China, and it was the company’s fourth largest country market. How will the boycott impact the H&M brand in China? How will H&M’s decision impact its brand in other markets, such as the U.S., Germany, and the UK? Should H&M change its sourcing stance in China? Which stakeholders should H&M target in its messaging? Should H&M issue new supply chain statements?
Teaching
Students will learn:
1. The challenges of balancing corporate CSR policies with national market strategies.
2. The risks of CSR decisions on brand reputation.
3. The balance between the benefits of outsourcing and its strategic risks.
4. The relevant stakeholders impacted by CSR decisions.
5. How to respond to local market brand and reputation problems with an action plan.
1. The challenges of balancing corporate CSR policies with national market strategies.
2. The risks of CSR decisions on brand reputation.
3. The balance between the benefits of outsourcing and its strategic risks.
4. The relevant stakeholders impacted by CSR decisions.
5. How to respond to local market brand and reputation problems with an action plan.
Case number:
A03-21-0013
Year:
Setting:
China
Length:
9 pages
Source:
Published sources
Andrew Inkpen
J. Kenneth and Jeanette Seward Chair in Global Strategy & Director, Thunderbird Case Series
