H&M

"In February 1985, 68-year-old Erling Persson transfers a large portion of his shares to his son Stefan Persson, now 38 years old.[39](private://read/01jas9tvg84jycb27616w1f9k8/#note-39) This means that the son, as the majority owner, can theoretically make decisions alone at the shareholders' meetings. During this record year, Erling Persson also leaves H&M's board. In four years, with Germany as the driving force, the company doubles in size. However, the German managers unexpectedly resign when they feel that Stefan Persson does not want to share the profits from the successes, Thomas Enderstein tells."

"off. Stefan Persson led H&M’s"

"It is said to have taken H&M ten years to achieve profits in Germany, but afterwards, the country was for a long time the clothing company’s largest market. It took about as long for the Bonnier-owned Dagens Industri to become a cash cow. Stenbeck built his media empire against the wind; for a long time, his project was seen as the expensive, pointless playground of a powerful man. Over the years, the playground became the backbone of the dynasty."

"Henrekson believes that a company focused on profitability may earn more in the short term, but risks ending up in a crisis in the long term. If the company culture is solely about making money, employees become more expensive at all levels, wage costs rise, because if the organization’s main goal is to achieve high returns, the employees will expect that as well. But if the organization has a broader goal, the staff also becomes fulfilled by that, wage costs are lower, and the company expands more easily. Clear examples of this are H&M and Ikea; people do not work there because the pay is high, but despite it often being comparatively low. Workplaces with a strong culture offer something other than money, and that benefits profitability in the long term."

"Even clothing billionaire Stefan Persson, the second generation in the family business, manages just fine. When he does run into problems, it’s not about his enormous wealth, but rather about H&M’s connections to child labor in poor countries. But he has never been accused of tax crimes and is registered in Sweden. Instead, he and a few others in the same category manage to achieve high status as “Sweden’s biggest taxpayers.” While there is an underlying sensationalist fascination with someone who pays 1.5 billion in taxes per year, the image of a pillar of society is created. So, judging by the Persson family, a Swede is allowed to become very rich without being condemned, but it must have happened in a way the public can understand. The understanding creates a certain acceptance for inequality in society."

"an article published in El País on June 16, 2008, it was commented that "Inditex's rise has been spectacular. Just four years ago, GAP, the leading American company at that time, doubled the Spanish group's sales, which was third behind the Swedish H&M. In 2005, it acquired European dominance and in recent years it has continued to grow strongly while GAP's business stagnated."

"Inditex is the only company, among the big ones in the apparel sector, that is fully vertical; GAP and H&M, for example, design and sell, but do not manufacture, and Benetton designs and manufactures, but their sales outlets are franchised."

"Wallenbergs, Bonniers, Ax:son Johnsons, H&M's Perssons, and a few others."

"By the end of the 60s, there are thirty-eight H&M stores across Sweden. "The massive post-war baby booms, wage drift, and the teenage dominance in fashion have created a never-ending demand," writes Veckans Affärer in 1967 in a portrait of Erling Persson.[13](private://read/01jas9tvg84jycb27616w1f9k8/#note-13) He has also opened stores in Norway and Denmark. H&M is catching up with both Gulins and KappAhl."

"Stefan Persson takes a different role during the establishment. While Erling Persson is on site once a month, Stefan Persson visits Germany at most once a quarter, when the German manager Edgar Rosenberg has interesting new store locations to show in the major cities. At this time, Stefan Persson focuses on finding the best store locations and then he puts all his energy into negotiating with property owners who are not familiar with H&M before. They have big dragons to fight, Dutch C&A and department stores like Karlstadt and Kaufhof. When the CEO of H&M himself comes down to negotiate a new store, it gives a completely different weight. Erling Persson makes his spontaneous visits, and combines them with sauna bathing. Stefan Persson always has an agenda."

"Despite H&M's position in Sweden - and in the world - not much is known to the public about the man who heads the company's hundreds of thousands of employees. H&M is Sweden's sixth largest public stock, with almost a quarter of a million private owners who receive scant information from the company. Not even out in the stores, where he is known as "the big boss", do the employees know much about who he really is. Even less is known by the seamstresses sewing H&M's clothes thousands of miles away."

"Hösten 1996 har Sveriges skatteminister [Thomas Östros](private://read/01jas9tvg84jycb27616w1f9k8/#in-332) fått ett bekymmer på halsen. Året innan hade regeringen höjt skatterna för att klara den ekonomiska krisen. Det är djup lågkonjunktur, med ständiga företagskonkurser, nerdragningar i välfärden och en hög arbetslöshet. Ett av få bolag som mår riktigt bra är H&M."

"The first out as Christmas model is Elle Macpherson, who in the fashion industry is nicknamed "The Body". Yes, the whole "big six" of supermodels - Elle Macpherson, Cindy Crawford, Naomi Campbell, Claudia Schiffer, Christy Turlington, and Linda Evangelista - are doing H&M campaigns. That Elle Macpherson is the first out is a decision made by Stefan Persson himself, he says in an interview a few years later. He mentions that he first falls for a woman's eyes. "From them comes warmth, humor, and radiance." The interview is conducted after his divorce from Pamela, and he comments on the separation with an openness that is unusual for him.[44](private://read/01jas9tvg84jycb27616w1f9k8/#note-44)"

"There is talk of an invisible success formula, a magical corporate culture, the so-called "H&M spirit". Positive energy and team spirit beyond the ordinary. A cult, some say - when they are sure the boss isn't listening."

"At that time, around four thousand people worked at H&M. It was still a relatively small and personal company. As a leader, Stefan Persson was not particularly present in daily operations, Lemner says, but if you asked to talk to him, you could. The decision-making paths were short and informal."

"In 1987, H&M turns forty, and Stefan Persson celebrates by inviting the press to a big party at the English castle Hever Castle, dating from the 12th century, a two-hour drive from London. The castle had been inhabited by Henry VIII's second wife Anne Boleyn. Present are models from Sweden, England, and France. H&M offers a buffet and fashion show in the old castle garden. A smiling Stefan Persson is photographed in the castle park with a glass of champagne in his hand, flanked by his PR chief.[42](private://read/01jas9tvg84jycb27616w1f9k8/#note-42)"

""The goal of the German-American billionaire is to preserve, revive, and rejuvenate the ‘cult brand’ Karstadt." The department store chain should focus on the segments fashion ("Fashion"), home accessories ("Living"), sports, and personal accessories as well as jewelry and cosmetics ("Personality") in the future. The restructuring experts have identified clear weaknesses here compared to relevant competitors such as Douglas, Peek & Cloppenburg, C&A, H&M, or Zara."

"When Stefan Persson arrives at work at H&M's headquarters in Salénhuset near Norrmalmstorg in central Stockholm, many employees are already there – buyers, economists, and assistants. He quietly greets those he meets in the office landscape. His father's rustic desk remains in the CEO's office as well as a porcelain donkey that his father, for some reason, had taken a liking to.[29](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-29) Stefan Persson settles into the soft office chair. In 1982, he is 35 years old and CEO of a rapidly growing clothing company, with competitors constantly breathing down his neck. Advice and tips he can always get from Erling, who has an office in the neighboring building so as not to "get in the way" of Stefan Persson. At the same time, the young CEO realizes that he must manage on his own, build his own alliances, and a group of confidants."

"Erling Persson had a special method to test the loyalty of his subordinate managers in the countries where H&M expanded, Enderstein explains: a pub crawl."

"Erling Persson never paid himself with his representation card, but it was the country manager who had to foot the bill. Erling Persson's right-hand man and H&M's chief financial officer, Inge Stjernquist, checked every bill. – Erling knew that Stjernquist would get the bill from some expensive pub in London, and then he would call up the country manager who had to explain why it was so much. Erling found that funny."

"However, first, the largest country in Europe, West Germany must be conquered, otherwise, it is not possible to move further out into the world. German H&M had essentially just copied the strategy of the Swedish parent company and believed that would suffice for success. It has not turned out just so. The competition looks quite different in such a much larger country, with many other companies in the same price segment that are already known among German consumers."

"The entire facade is covered by a gigantic KENZO banner. KENZO is known for its vibrant patterns and for mixing luxurious fashion with youthful streetwear, which has been highlighted in the massive pre-advertising. Just inside the entrance doors, about forty H&M employees, mostly young women, dance to the music like a gospel choir, doing the wave, clapping their hands over their heads and chanting in chorus: – KENZO, KENZO, KENZO! As the clock approaches nine, the intensity increases. The staff counts down: – 10, 9, 8, 7, 6, 5, 4, 3, 2, 1! Exactly at the stroke of the hour, the Securitas guards lift the barriers. Customers are flooding into the store where t-shirts, tops, dresses, and caps in KENZO's plaid pattern await."

"At the time of his appointment as CEO, H&M had established itself as a distinct budget option in the fashion industry, which sometimes becomes a bit embarrassing for someone with Stefan Persson's circle in Djursholm. At this time, H&M's mail order customers, for example, could order "a batch of Italian fashion shoes with minor beauty defects". Stefan Persson also wants to sell finer clothes, not just the cheapest ones. In 1973, Hennes & Mauritz had attempted to buy BeKå, the largest and most prestigious department store in southern Sweden.[30](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-30)"

"Already in one of his first interviews before he was to take over as CEO, Stefan Persson declared that the USA was the target. This despite the fact that his father had the opposite opinion. "I'm sure we would fit in America," Stefan Persson confidently tells Damernas Värld in 1981.[83](private://read/01jas9tvg84jycb27616w1f9k8/#note-83) At the turn of the millennium, the time is finally ripe. In tough competition with, among others, clothing giant GAP, with the brand Old Navy that every other college student already wears, H&M is now set to break through."

"Until now, Hennes has only sold women's clothing, but at the end of the 1960s, they also begin to sell inexpensive children's clothing. It becomes an immediate success. "The best thing since the introduction of child benefits," writes a mother to H&M – a quote that is then used in marketing.[7](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-7) When the old hunting and fishing store Mauritz-Widforss is going to close, Erling Persson buys the entire business, including staff. Mainly for the store location near Sergels Torg, but he also wants to further broaden the range and start selling to the male part of the population."

"– We are here for the KENZO clothes. They are different and cool, shout the customers Josephine and Tove to drown out the music. Their teenage faces glow with anticipation as they squeeze into the middle of the long queue that already winds around the block. They have been here since seven o'clock in the morning. In previous years when H&M released their designer collections, chaos and fights broke out as customers struggled to be the first in the store. Therefore, H&M's website has clear instructions on how customers should behave: If you arrive before the store has opened, please stand at the end of the line."

"The dress she is wearing is powder gray with a gold medallion pattern, features a one-shoulder design, and has a long train. It is a dress that makes headlines in the fashion press where the celebrated guests’ choice of dresses is scrutinized closely. It is the first time the Crown Princess wears a dress from H&M at a Nobel party.[200](private://read/01jas9tvg84jycb27616w1f9k8/#note-200) Supermodels in the 1990s, world celebrities in the 2000s and now Sweden's future head of state - how has Stefan Persson succeeded in getting royalty to wear H&M clothes? As H&M's business successes have grown, so has Stefan Persson’s reputation among the country’s economic and political elite. But he has made a special effort to create good relations with the royal house, both privately and in business."

"Why then do both Stefan Persson and Karl-Johan Persson repeatedly respond as if the alternative to decent conditions for the workers is to not be there at all? Serious critics who actually believe that H&M should stop trading with the third world are conspicuously absent. The demands they make are that H&M should ensure that there is a better working environment and higher wages where H&M's clothes are sewn up and that the UN declaration of human rights should be fulfilled."

"Stefan Persson has not chosen to reduce purchases from poor countries, on the contrary, he has bought even more.[125](private://read/01jas9tvg84jycb27616w1f9k8/#note-125) Now, through subcontractors, he employs a million seamstresses in Asia.[126](private://read/01jas9tvg84jycb27616w1f9k8/#note-126) In report after report, Stefan Persson has convinced the world that the company uses its size and influence to positively affect social development in these countries and that H&M contributes to improved conditions for many people. "Through our presence, we contribute to improvements in these societies," for example, it states in H&M's annual report 2011.[127](private://read/01jas9tvg84jycb27616w1f9k8/#note-127)"

"H&M also emphasizes that by its presence in, for example, Cambodia and Bangladesh, it contributes to women entering the workforce. Often, it is young women from rural areas who completely lack education and who can neither read nor write who get jobs. Jobs that provide them with a salary and the chance to be lifted out of poverty and become independent. "In both countries, more women than men work for the clothing manufacturers, which is significant since job opportunities are generally worse for women than for men in these countries," H&M wrote themselves in an email to the media.[128](private://read/01jas9tvg84jycb27616w1f9k8/#note-128)"

"The criticism against the Christmas campaign, which is called sexist, just grows. Ahead of the Christmas shopping season in 1993, Stefan Persson responds by letting the model Marcus Schenkenberg pose in H&M's underwear, which somewhat silences the critics. But the next model who adorns the street corners in Sweden's cities causes more uproar than ever before. Stefan Persson has chosen Playboy model Anna Nicole Smith."

"When Karl-Johan is introduced as the new CEO on February 11, 2009, he is indeed wearing a shirt and suit from H&M, but around his neck is a real class marker: a tie from the French top brand Hermès. And he drives nice cars. In Sweden, a gray Mercedes Benz GL 420 and a black Lexus RX400H. In London, where he lives in the fashionable Knightsbridge, he drives a Lexus."

"In Stockholm, a gigantic billboard featuring Madonna in her own H&M-designed clothes is put up, covering an entire facade at Stureplan. The combination of Madonna, sex, and cheap designer clothes creates chaos as customers queue early in the morning and nearly fight over the clothes. The opening at the flagship store on Hamngatan in Stockholm is like nothing else. The first ten customers receive a trench coat with Madonna's autograph. The collection consists of about thirty garments and ten accessories. A dress costs 300 kronor and the trench coat 800 kronor."

"After Lagerfeld's criticism, Madonna's collection is sold in larger editions, although it is still limited. The designer collaborations are not meant to take up more than a small share of H&M's total sales. Instead, it's about marketing that can be worth several billion in terms of media exposure. "H&M is a bit everyday like that, but now it's been spruced up a bit," says a customer to SVT and means that she herself has changed her opinion about H&M through the Madonna collaboration. Once the global stars have attracted customers to the store, H&M can also sell its basic goods, socks, underwear, t-shirts, which have been manufactured long in advance in huge editions with much higher profit margins than the special collections."

"Running a business in Sweden has not always been easy. In Sweden, there are the Law of Jante and envy. The fact that business is a prerequisite for tax revenue and welfare is often forgotten. During the Swedish crisis of the 1990s, when tax money and jobs shrank to record low levels, there were few large companies that had stable development and grew like H&M."

"H&M is praised for the initiative to make designer fashion at this level accessible to the public. However, there is also criticism, and it comes from an unexpected quarter – namely, the designer Karl Lagerfeld himself. Despite the concept being designer fashion at a low price, his items are released in a limited edition. The first Lagerfeld collection sells out in just a few hours. This was not Lagerfeld's vision for the collaboration. In an interview with the German magazine Stern, he says: "I think it's embarrassing that H&M has let down so many people. It's snobbery created by anti-snobbery."[102](private://read/01jas9tvg84jycb27616w1f9k8/#note-102)"

"German-born Karl Lagerfeld had moved to the fashion capital Paris in his twenties, where he became known for his innovative haute couture creations. This refers to the absolute pinnacle of exclusive fashion, clothes worn by the fashion elite and the very richest. The idea of a single mother being able to afford to wear Lagerfeld was unthinkable. But H&M breaks new ground in its philosophy of fashion at the lowest price when it starts a collaboration with Karl Lagerfeld, who designs a collection for H&M at prices that are a mere pittance compared to what they would have cost on Rue du Faubourg Saint-Honoré in Paris."

"Rolf Eriksen, who drove H&M to record profits after Fabian Månsson's departure, has often guided Karl-Johan Persson around the headquarters and taken him to important meetings. Karl-Johan studied at the European Business School in London. He also started the conference company European Network and runs, among others with the heir to another family dynasty, Finn Rausing, the English company Sportpro Limited which sponsors young sports talents. Three years earlier, he had been elected to the H&M board and he has also been in charge of H&M's expansion."

"In the media, Stefan Persson has previously said that his wealth is tied up in a fictitious value in the form of H&M shares that do not give him money in his own pocket, other than a dividend, which he has mentioned is relatively low compared to the shares’ value of about 60 billion. H&M’s profits are soaring and the establishments in country after country are going brilliantly. But keeping everything in H&M shares can be risky – like putting all your eggs in one basket. He has sold shares for two billion and can invest in something other than the clothing chain."

"In his youth, Stefan Persson was sent to England to prove his initiative. To test Karl-Johan's abilities, Stefan Persson has tasked him with creating a new brand. COS is described by H&M themselves as clothes that are "made to be worn across seasons and blend high quality with timeless design, clean silhouettes, innovative techniques, and functional details inspired by art, technology, and architecture."[112](private://read/01jas9tvg84jycb27616w1f9k8/#note-112) The first COS store was inaugurated in London on March 16, 2007. "At that time, we got to test entrepreneurship, to create something completely new even though we had the financial strength of H&M behind us. We faced small problems every day and also some big ones," Karl-Johan Persson recounted a few years later.[113](private://read/01jas9tvg84jycb27616w1f9k8/#note-113) As is well known, most new companies do not survive very long. Perhaps it is to secure his son's project that Stefan Persson buys the fashion company FaBric Scandinavien AB for half a billion kronor. In the purchase, he acquires the established brands Weekday, Monki, and Cheap Monday, which become part of the H&M group. COS survives the test. Karl-Johan Persson is ready for bigger assignments."

""We were there and saw the first store open, on Fifth Avenue in New York. It was really touching. Many had failed to start clothing companies in the USA, and it was a major commitment for us that went very well. It was fun for grandpa to see, since it was in the USA where he got his idea for H&M. And it was fun for me to see him so happy," Karl-Johan Persson later recounted in an interview published on the Royal Swedish Academy of Engineering Sciences website.[94](private://read/01jas9tvg84jycb27616w1f9k8/#note-94)"

"Intensive work has been going on with everything from lease agreements to staff recruitment ahead of the premiere opening. There is great enthusiasm among the staff, who in turn fuel the expectations of the customers. In a press release issued by H&M before the opening, they highlight their seventy own designers and the 300 million garments sold per year. To help, the PR department has enlisted world stars like Isabella Rossellini and Johnny Depp. But just a week before the big opening day, what should not happen happens. Fabian Månsson steps down as CEO of H&M, as suddenly as he was appointed."

"H&M's corporate culture was built on giving great responsibility early, in a flat organization. The framework for the assignment was incredibly clear. But within the framework, there was almost unlimited freedom—as long as the results continually improved."

""This issue with child labor and poor working conditions definitely exists in these developing countries. And we need to ensure that our demands are complied with. And we do that by increasing the number of inspectors," he tells TV4 and emphasizes that H&M is conducting development work in the countries: "I still think that trading with these developing countries is the best foreign aid you can give," says Stefan Persson.[82](private://read/01jas9tvg84jycb27616w1f9k8/#note-82)"

"The US launch has given the company’s staff a boost in confidence. Less than a week later, the first store in Spain opens. Over the following years, Stefan Persson cuts ribbons at new H&M stores in countries including Poland, Portugal, and the Czech Republic. H&M now sells more than five hundred garments per minute worldwide. And Stefan Persson has fulfilled his promise of reaching America."

"There are many meetings now. Stefan Persson has taken the time to commute between several boardrooms outside of H&M for a couple of years. He cannot say no when the Wallenberg family calls and gives him a seat on the board of the appliance company Electrolux, where Jacob Wallenberg, among others, sits. Wallenberg has been a leading industrial family for a long time, and there is a lot to learn from that experience. The family controls a dozen Swedish large corporations the size of H&M, such as Ericsson, Electrolux, and Saab, but without serving as CEOs. Typically, they govern as board members instead."

"H&M's staff, with Michael Lemner at the forefront, work hard to finalize everything for the opening in Paris. And the premiere in Paris is a success. But it also marks Stefan Persson's last major public appearance as CEO of H&M."

"At the end of March 1998, the news comes that Stefan Persson is stepping down as CEO. Instead, he becomes a "working chairman of the board". The word "working" is a deliberate signal that he does not intend to spend his time playing golf. Stefan Persson wants to continue leading H&M."

"The CEO position is taken over by H&M's director of purchasing, Fabian Månsson – which surprises everyone. Månsson, who studied at the School of Business, Economics and Law, is introduced as a former rock musician. He is only 33 years old, about the same age as Stefan Persson when he left London to take over the CEO position from his father."

"The yellow taxis resemble a lava stream flowing south along the one-way Fifth Avenue in New York. On the sidewalks, businessmen in Armani suits walk with a paper cup of coffee in one hand and a mobile phone in the other. This parade street is the address for some of Manhattan's biggest tourist attractions: Rockefeller Center and the circular architectural museum Guggenheim. At the corner of Fifth Avenue and 51st Street on the Upper West Side, H&M's team has finally found the perfect spot. On 3,000 square meters of retail space across three levels, New Yorkers will be offered departments for men, women, youth, and cosmetics. Large glass windows form an enticing front facing the street. It is not possible to find many more expensive retail addresses anywhere in the world. Right next door, the luxury brand Gucci has its store. Stefan Persson says in a radio interview that low-price H&M still becomes a good neighbor."

"Even then, Michael Lemner was not completely unprepared—a few years earlier, he had been moved to Switzerland with equally short notice. - I had never worked with store operations and never worked abroad. But they said it doesn't matter. They just dropped me in Geneva, he recounts.[80](private://read/01jas9tvg84jycb27616w1f9k8/#note-80) H&M calls the method "assisted self-learning." There are those who talk about how it should be done, but you have to learn everything yourself. - We used to say we drop them in the swimming pool and then see who can swim."

"As the country manager for France, Stefan Persson has chosen his friend from Djursholm, Michael Lemner. Michael Lemner has made exactly the kind of rapid career within the company that characterizes Stefan Persson's leadership style, where those who are ambitious and show the right spirit are quickly promoted. And the turns can be sharp. At the beginning of the 90s, Stefan Persson had announced that Michael Lemner would be placed in Brussels to establish H&M in Belgium. When will this happen? Larsson asked, and Stefan Persson answered without blinking: "Tomorrow.""

"But even in their own ads, H&M's low prices have hinted at the mystery of how they manage to keep prices so low: "Here it is a pleasure for both poor and rich. How is this possible? Well, you must forgive us, but we actually keep that to ourselves."[71](private://read/01jas9tvg84jycb27616w1f9k8/#note-71)"

""I think this is absolutely terrible. Being a model is her profession. If she has anorexia, it is a matter between her and her doctor, and possibly her family," Stefan Persson thunders, continuing: "There is surely no way to determine whether she has diabetes or if she suffers from cancer or if she has AIDS or anorexia. This is certainly not sick advertising, rather it is a sick debate. There are surely anorexics at H&M. They are allowed to keep working here. We are not going to demand any medical examination or any teaching certificate.""

"H&M's purchasers are skilled negotiators. While other clothing chains let manufacturing costs dictate the price to customers, H&M has turned the tables and bases their prices on what they believe the customer is willing to pay. If the polo shirt is to cost 159 kronor in the store, it is the buyers’ task to make it possible.[73](private://read/01jas9tvg84jycb27616w1f9k8/#note-73) When H&M's production manager Jörgen Andersson is interviewed by the TV team, he explains that H&M bargains as hard as it can in the poor countries of Asia."

"Clothing analysts remain skeptical about whether H&M will succeed in the tough American market. However, Stefan Persson's venture turns out to be a stroke of genius. The opening is well received and more stores quickly follow. By the end of 2000, H&M is awarded the International Retailer of the Year by America's National Retail Federation. In contrast, main competitor GAP stagnates in growth. Soon, the USA becomes H&M’s largest market after Germany."

"“When H&M's purchasers come here, they dictate a price. For a simple bra, it might be 2.50 or 3 dollars. If I cannot meet that price, I do not get the order,” says the factory manager. The Saldana factory has had to lower its prices and sometimes even take a loss in order to receive orders from H&M. "We started sewing for them last year, but this year they have reduced the price by 30 percent. The reason is that they can get garments of the same type for lower prices in other parts of the region. In business, it's the one with the lowest price who gets the order," says the factory manager in the SVT documentary."

"It is a crucial moment in his career, no matter how reluctantly he faces it. His and his father’s life’s work is being questioned. If he fails to suppress this scandal, decades of hard work may crumble. The program’s softly rumbling trumpet fanfare starts, and a rotating shredded A for Aktuellt appears on the screen. Host Lars Adaktusson looks stern. The labor movement reacts strongly to SVT's documentary on child labor. Several cabinet ministers want to boycott H&M. In a longer interview, the chairman of the Swedish Trade Union Confederation, Bertil Jonsson, considers urging pension funds where the Trade Union Confederation is on the board to also sell their H&M shares, including the Fourth AP Fund which owns five percent of H&M. Stefan Persson is in Africa, but is available on the phone. A photo of 50-year-old Stefan Persson in a brown jacket, white shirt, and tie is shown in the image."

"On December 29, 1997, the documentary Latest Fashion – At What Cost? is broadcast during prime time. Immediately after the scene with the tearful Filipino seamstress, the phone rings at Cecilia Zadig's home. A wealthy businessman offers to pay for the education of the seamstress's daughter. Above all, it is the discovery of child labor that causes an uproar. The industry magazine Resumé conducts a survey showing that one in three Swedes plans to shop less at H&M."

"H&M has been pioneers in finding cheap labor in Asia in order to keep prices down and maximize profitability.[72](private://read/01jas9tvg84jycb27616w1f9k8/#note-72) In the 1990s, there is an intense debate about the working conditions within the textile industry, especially around American giants like Nike and Levi’s. Swedish Television has decided to investigate the consequences of the global economy in two documentaries focusing on our national prides, Ikea and H&M."

"H&M spends four to five percent of its turnover on advertising. In 1994, it amounts to over half a billion.[49](private://read/01jas9tvg84jycb27616w1f9k8/#note-49) According to a source with good insight, this percentage remains the same in the coming years. When the company has surpassed one hundred billion in turnover, this means around four billion kronor in advertising budget.[50](private://read/01jas9tvg84jycb27616w1f9k8/#note-50)"

"When Cecilia Zadig finds the subcontractor's factory in a small village outside Manila, it turns out to be a completely different standard here than at the larger factories. In cramped and dirty premises, young women sit by large piles of H&M clothes. This is where the green and white polo shirt is actually sewn. A woman named Angelina Nico sits at one of the knitting machines doing the monotonous work. She has brought her little daughter, who is sleeping on a pile of t-shirts. Angelina Nico works seven days a week, often from 8 am to midnight. And she often sleeps over at the factory. She earns only twenty crowns a day, which is not enough for more than food for the family. The house that she bought when she had a higher salary from another factory stands half-finished and overgrown because she lacks money. The young Filipina is exhausted from work. Cecilia Zadig shows her the issue of the magazine Månadsjournalen that has Stefan Persson and Erling Persson on the cover. Both are wearing suits and looking confidently into the camera. "Secret and Rich," is the headline. When Angelina Nico learns that these are the men she works for, she pleads with them to help her with money for her children's education. She herself will never escape a life of poverty, but her highest wish is for her daughter to have a better future. But Zadig's report doesn't end there. It turns out that this textile factory in turn hires subcontractors to be able to keep the prices offered by H&M. They are called home workers, working for even less money. And those who work the cheapest are the children."

"H&M continues to run Christmas ads with "this year's traffic hazards." Next up is Pamela Anderson, best known for her slow-motion running on the beach in the TV series Baywatch, wearing a tiny red swimsuit. Among consumers, this strategy is taking hold. Other clothing giants are launching their own lingerie campaigns."

""No. That is not at all the purpose for us to get this kind of publicity. I don't think it harms either," replies Stefan Persson. "First and foremost, I want to say that I support and sympathize a lot with what the women's shelter accomplishes. But I definitely do not share the opinions about H&M's advertising. And perhaps that was not to be expected otherwise. I actually do not think there is a single element of pornography in this advertising.""

"The fact that the heads of the most important new H&M market, Germany, are quitting in protest against Stefan Persson's way of managing the company is not disclosed to either shareholders or the public. Instead, Stefan Persson is named Leader of the Year 1988.[40](private://read/01jas9tvg84jycb27616w1f9k8/#note-40) The jury writes that "Stefan Persson is a merchant in the purest sense of the word" and in the award from Leadership and Economic Business Management, EF, it states that he has surpassed his father. "He took over the baton and he has shown that he can run even faster and better." Stefan Persson is described as a cautious, listening, low-key person who dislikes self-promotion."

"H&M begins to hire so-called supermodels, exclusive photo models with the same aura as movie stars. And with equally high fees. Instead of Prada, Gucci, and Louis Vuitton, these women will now showcase H&M's low-cost fashion. And it will be light clothing for Christmas."