1, 2, 1. October 2017. Baster is sweeping. About 60 miles west of Stockholm. A Danish journalist from a TV program called Operation X approaches a large power plant. The imposing blue and white structure looms over the landscape, smoke billowing out of its chimneys. The journalist who's accompanied by a cameraman is both nervous and excited.
He's been working on a documentary about fast fashion waste for months. And this plant may hold the smoking gun. Yens Niren, the plant's owner, spots the reporter and his cameraman and flags him down. The reporter picks up his pace, waving hello. Ah, thank you for agreeing to meet me. No problem. How can I help you?
I'm investigating claims that H&M is burning clothes here at your plant. H&M is one of the biggest fast fashion companies in the world, bringing up 26 billion dollars a year in sales. With close to 5,000 stores around the world, it's an industry Titan.
Niren doesn't think much of this question though, he's just eager to get back to work. That's true. The reporter is shocked. If this information checks out, he knows this story has the power to cause major damage given that sustainable is the major buzzword in fashion right now.
But the reporter doesn't have time to ponder his documentary's impact. He jumps right to his next question before the plant owner can clam up. How much clothing has burned so far? This year, I guess around 15 tons. It's been great for us. The plant has a mandate to stop burning fossil fuels in the next few years, so instead we're burning clothes.
And these clothes, are they defective? H&M told us they were. They said they only send us clothes with mold damage or too many chemicals. But we ran some tests and everything checked out. What do you mean by checked out? The clothes they're having you burn are perfectly good? Niren considers the question for a moment. You could say that.
And how long has this been going on? Since 2013, the reporter reels. He's just gotten a career-making scoop and won the threatens to dethrone the top player. He has an on-the-record admission that H&M has so much unsolved inventory. They're burning their own product. And they've been doing it for at least half a decade.
Hi, I'm Sarah Haggi, co-host of Wunderies Podcasts Scample Insers. In our recent two-part series, Three Weddings and a Funeral, we dive into the story of a German con man who built an entire life on fake names, lies, and schemes. And the unlikely true-kind twist that brought this decades-long charade crashing down. Listen to Scample Insers on Amazon Music or wherever you get your podcasts.
From Wunderie, I'm David Brown and this is Business Wars. Summers are buying five times the amount of clothes they bought in the 1980s. On average, Americans now buy a new piece of clothing every five days.
Driving that surge are fast-fashion companies that mass-produce inexpensive, low-quality clothes. They build empires selling $7 t-shirts and $20 jeans that cost even less to manufacture. All changes is fast as it takes an Instagram post to go live and to keep pace with the hottest trends, competitors demand their manufacturers deliver cheap clothing at lightning speed.
In our new series, four fast-fashion giants face off. Zara, H&M, Topshop, and Forever 21. The global market is expected to grow to more than $30 billion this year, but that kind of serious money is running into some serious concerns and is not just knock-off competitors either.
It's a rare pang of global conscience among people who think twice before ordering the $7 t-shirt destined to take up permanent residents in a landfill.
London, 1987. 25-year-old Jane Sheppardson enters her boss' office at the headquarters for British retailer Topshop. A successful up-and-coming brand in the UK, Topshop started in the basement of a department store in 1964. Now, nearly 25 years later, it has dozens of standalone locations throughout the UK and brings in millions of pounds in profits each year.
With blonde hair and sharp features, Sheppardson has the air of a rebellious tomboy. In the last five years, she's worked her way up from checking inventory in the Topshop warehouse. Now, she's a buyer. It's her eye for style that dictates what Topshop puts on its floors.
But Sheppardson has her sights set on bigger things. She hesitates briefly, waiting for her boss to look up. I placed the order you asked for for the Jersey Department. Sheppardson's boss looks disinterested. What did you decide on?
Sheppardson steals herself. She knows her answer will be controversial. Tank tops. Her boss snaps to attention incredulous. Tank tops? No one with any taste is wearing tank tops. Are you out of your mind?
I'm trusting my instincts. And what makes you think your instincts are so extraordinary? They're not. I'm very, very ordinary. I'm just like millions of women. And if I would buy tank tops, so will they.
You sound pretty confident that millions of women would like what you happen to like. Would you take your job on this?
你听起来很自信,认为成千上万的女性会喜欢你偏好的东西。你愿意在这方面承担责任吗?
Yes, yes I would. They're going to sell. Soon every woman in Britain will be wearing a Topshop tank top.
是的,我会的。它们将会卖得很快。不久,英国的每个女人都会穿上一件Topshop的背心衫。
Well, if the order's already been placed, I suppose it's too late now, we'll just have to see about your big gamble then, won't we? Sheppardson nods, curtly, and leaves. Now, all she can do is wait.
Sheppardson's instincts prove correct. Half a million tank tops sell in one week. Ever since she started making her own clothes in her bedroom in Yorkshire as a teenager, she's been dreaming about a big break like this one. And the higher ups at Topshop take notice. Within two years, she's promoted to head buyer. At last, she makes all the calls about which clothes to buy and how many.
But now, there's even more pressure to get those calls right. Cause the industry is undergoing a massive shift. New low cost retailers like Madeline and Newlook in the UK and Old Navy in the US are putting pressure on established brands to decrease prices or to be left out in the cold. Its prices might not be as low, but Topshop is making a name for itself by featuring designs from trendy, up-and-coming young designers.
现在,正确接听电话的压力更大了。因为行业正在经历一次巨大的转变。在英国,像 Madeline 和 Newlook 这样的新型低成本零售商以及在美国的 Old Navy 正在给已经确立的品牌施加压力,迫使它们降低价格,否则就将被孤立。虽然价格可能不低,但 Topshop 通过展示来自时尚、新兴年轻设计师的设计而闻名。
In 1994, they reached an important milestone, a new flagship store. Oxford Street, London. Two teenage girls wearing baby doll dresses, knee highs and Mary Jane shoes. Enter the three-story 90,000 square foot new location or Topshop. And Emporium's so massive, it will become known as Big Topshop. Girls gawk at the scene, music blasts from a DJ booth on the third floor. A marvel at the space, brightly colored trendy clothing fills racks.
But this isn't just a store. It's an experience, a groundbreaking move in the fashion world. Ooh, it's like a nightclub. Discus, amazing. Wait, is that a manicure station and food stalls? This is unbelievable. Excited teenagers rush to the fitting rooms with armfuls of fashion finds. Their halls are a mechs of designer brands and vintage pieces, as well as basics, including tank tops.
The different sections have names like Freedom, boutique and moto. To highlight different aesthetics and cluster groups of items that complement one another to create outfits. For these girls who've traveled by train from Sussex to get here, it's a chance to feel like their Queens of Style. They beam at each other. I bet this is where Kate Moss shops. Totally.
As the 1990s progress, fast fashion strengthens its foothold as customers clamor for inexpensive items. But top shop buyer Jane Sheppardson believes you don't have to sacrifice style for affordability. 1999 Sheppardson, now 37 years old, sits in her office ready to make some big decisions. In the past decade, she's developed a reputation for her strong instinct for what will sell, making high fashion looks and making them mainstream. Now she's the company's brand director, but she's struggling to stay ahead of the competitors that seem to pop up daily.
A young female buyer shows Sheppardson items of clothing hanging on a portable rack. And these are some of the dresses I was considering? Sheppardson grabs a stretchy, clingy, bright pink dress. The kind of thing one would wear to a club. This is just ghastly. I was told they're selling well. A similar style sold a thousand units last week. I don't care. We're only going to sell items we can be proud of. Tell me, would you be proud to see a woman wearing this dress? The buyer sheepishly holds the dress up to her body. No. Exactly. We are dressing the women of Britain. Let's dress them well.
Sheppardson flips through the clothes on the rack. And these t-shirts. She holds up a boxy tee with pastel stripes. Someone would buy this. A lot of people would. But we're not selling it because it's disgusting. I hate it. I'm sorry. I was told to select some t-shirts. I'm going to give you a piece of advice. Okay? We sell clothes that you and I and our friends would wear. Sell what you think is beautiful. Sell clothes that make you go, oh my god, that's stunning. And maybe you won't make any money on that piece, but if a customer loves it, they'll come back next month to see what else you have.
Sheppardson pulls a military-style jacket off the rack and considers it. Now this. This is nice. More like this. You have good instincts. You just have to trust them.
Under Sheppardson's leadership, Topshop is poised to soar to new heights. But Topshop isn't the only company making waves in the fast fashion world. H&M has spent the past two decades steadily expanding across Europe. And now the Swedish brand has 700 stores across the continent. They've got star power, too. Supermodels El McPherson, Cindy Crawford, Naomi Campbell are the faces of their high-profile ad campaigns.
And H&M is about to create its own nightclub experience in a place that doesn't give a damn about how British women dress..
H&M即将在一个不关心英国女性着装如何的地方创造自己的夜店体验。
March 31, 2000, a crowd waits on Fifth Avenue in Manhattan held back by Velvet Roads. They gawk in anticipation at the new 35,000 square foot three-story H&M store. Shoppers have heard tales of the brand's cheap prices and fashionable styles. And a last-minute ad campaign featuring actress Chloe Sevenier has lured in young bargain hunters from all five burrows.
The doors finally open and customers flood in, storming the racks. Two young women immediately start grabbing items. Oh my god, I love this tank top. She holds up a tiger print tank top. How much is it? Only $17.
Usually, I can only get one new thing when I go shopping for that price. I can afford to get like 10 things today. They grab more items from the racks, a plaid skirt, a camel-colored leather coat, a pair of drawstring pants, a clothes or a mix of runway knockoffs and casual streetwear.
At first glance, many of these pieces would fit right in on the chic affluent upper west side. That is, if you don't spend too much time examining the label. One of the friends points up to a display. I need to have that paisley skirt. The one on the mannequin is my size. The fitting room line is already so long. Unfazed, the shopper starts trying on items right in the aisle of the store, considering a jacket and a full-length mirror.
H&M brass were worn. New Yorkers are not the type to line up for anything. Let alone $9 tank tops. But within the first 13 minutes after the store opens its stores, 2,000 shoppers enter the store, and they walk out with arm loads of clothes.
Competitors are worried. Stores including Learner New York, the limited express, and even Bloomingdale's are taking notice of H&M's shockingly low prices. They know that if the company moves into shopping malls, still the mecca of budget retail in America, they'll struggle to compete. In what seems like a direct response, Bloomingdale's launches a new ad campaign, stressing style and value. It's a noticeable pivot for the high-end department store that has never seemed terribly concerned with affordability.
竞争对手很担心。包括Learner New York、the limited express和Bloomingdale's在内的商店都注意到H&M惊人的低价。他们知道如果这家公司进入购物中心,那仍然是美国经济型零售商的天堂,他们将难以竞争。看起来,Bloomingdale's推出了一项新的广告活动,强调风格和价值,似乎是对这种直接反应的回应。这是一家高端百货商店的明显转变,他们似乎从未特别关注过价格实惠性。
And H&M is coming for the malls. The brand plans to open 100 stores across the United States, starting with a Palisades mall north of New York City and New Jersey's Garden State Plaza.
H&M要进驻商场。这个品牌计划在美国开设100家门店,首站是纽约市北部的Palisades商场和新泽西州的Garden State Plaza商场。
2002 Top Shops Head Offices London. Brand Director Jane Sheppardson's office. Sheppardson's just gotten off the phone and her head spinning with the news that British businessman Philip Green has bought Top Shops parent company Arcadia Group for $1.3 billion. She turns to her colleague.
Philip Green, a cat, believe it. Well, it has the cash for it. He just held a 50th birthday party on Cypress to the tune of seven million pounds. And you know who performed?
Yes. And Tom Jones too. Philip Green has a terrible reputation. He shouts at the buyers and wants threatened to throw someone out a window. And have you seen them, man? Nothing about him is fashionable.
Well, like it or not, he's here to stay. The change in ownership spells trouble for Jane Sheppardson's historic reign. She and Green do not see eye to eye. And if they can't resolve their differences, the entire empire she's built will be at risk.
Bad dates. We've all had them. Everyone can relate to them. And now it's time to celebrate them. I'm Dramida Jamil. And each week I welcome my favorite comedian, celebrities, and funny friends to share the romantic misfires that they've faced on the road to love.
To shocking or both. We'll have guests like Roy Wood Jr. She has a place to live, I don't. So I'm on my hobo sexual shit, and I'm over there. Oh, no, sexual. Yeah. Nikki Glazer. I dated this guy, and I really liked him. One day he said, cool beans, seriously. And I could not. And Conan fucking O'Brien. Let's just watch the swearing, okay? I'm, yeah. If it weren't for that F-bomb, this whole thing would be suitable for children.
So come join us for bad date stories that'll make you laugh a lot, cry a little, and cringe just enough. Follow bad dates wherever you get your podcast. You can listen early and add free on the Amazon Music or Wondering app.
November 2004, Stockholm, Sweden. Jorgann Anderson, H&M's marketing director, and Rolf Erickson, their company's managing director, stand in a showroom. They're facing mannequins wearing pieces from an upcoming collection. It's a collection that has the potential to launch the company to new heights.
Anderson considers a t-shirt that features an illustrated image of famed Chanel designer Carl Lagerfeld's face. Hmm. This is not what I expected. Not at all. Erickson agrees. This is uncharted territory, a high-end collaboration for an affordable brand. H&M asked one of the most famous designers in the world to design an inexpensive line. The gamble might not pay off. Well, I don't know what I expected, but it definitely wasn't a cartoon of Carl Lagerfeld.
Will our customers buy this? I think they might. It's strange, but it's exclusive. It's prestigious. The two men, I, as sequin jacket on the next mannequin. What's the retail price for this one? $129. Hmm. It's aspirational. Our customers can't afford Chanel, but they can't afford Carl Lagerfeld for H&M. And we're starting small, a limited quantity of items. It'll make them feel scarce, exclusive, special edition. You know, this could revolutionize the industry.
It does just that. Lagerfeld's 30 item collection sells out within minutes at H&M's parastors and within days across the rest of the world. Sales skyrocket by 24% for the month. Customers are thrilled to be able to own designer clothes at a fast fashion price. Black and white avant-garde TV ads feature Lagerfeld himself promoting the collection. Help! Help! How is it true? Of course it's true. Please, chip.
What a depressing word. It's all about taste. If you had sheep, nothing helps. However, Lagerfeld is not pleased by H&M's plan for such a limited collection that sells out in minutes, leaving so many customers disappointed. But H&M has tapped into something critical. By producing a relatively small number of each item, it creates an illusion of scarcity and exclusivity that is almost an aphrodisiac for customers. The ploy is wildly successful. The t-shirt depicting Lagerfeld's face is the hottest seller of the bunch. Next up on the design collaboration docket, Stella McCartney. Frustrated customers are already making plans so they don't miss out.
Meanwhile, back at Topshop, Jane Sheppardson sees the next competitive challenge. And it's not Carl Stella or any other notable fashion designer. It's potentially something far more devastating if she fails to respond. It's 2004 and Sheppardson sits in the office of Philip Green, a stern-looking man with thinning gray hair. Green resembles a character out of the Sopranos. His own simple, unremarkable suit does not suggest he is the owner of one of the world's biggest fashion brands.
Sheppardson leans in eager to update her boss on her latest achievements. Things are changing, and it's all because of the internet. Before, the average person around the world had no way of knowing what styles were shown on the runways. Now, anyone can see them with a click of a button if they know where to look. Green frowns. He isn't interested in theorizing about the industry. He cares about his bottom line.
And what does that mean for our sales? It means we have to be fast, even faster than we are now. Right now, it takes six months for runway trend to make it to our stores. But if we take that long, those pieces won't be in style anymore. So what do you suggest? Well, if we do this right, we can get runway knockoff pieces to our customers in eight weeks. Oh, interesting idea. We'll see if it'll work.
I do have some concerns, though. She pauses, choosing her next words carefully. Her relationship with Green has been challenging, and she needs to be strategic. We're buying a lot from Asia. That's going to make our supply chain take longer. It has cheapest to make clothes in Asia. You know that. Right. I just think it may be wise to consider some more strategic supplier relationships close to home. That way, we can get new clothes into the stores faster, and also on the internet. H&M is starting to expand online sales. I really think this will be the future. No, no, no. No, we can't take the focus off our stores. They're iconic. Going a big Topshop for the first time is a rite of passage. Now, why don't you go focus on making me some money?
Shepherds and rises and begins to head out of his office. But she pauses as she reaches the door. I don't like to compromise, and I really don't like to be told what to do. I need freedom to operate to try new things. I can't have my creativity stifled. She lets her words sink in as she closes the door behind her. Shepherdson's directness with Green comes from measured success in 1999, just before she took over as brand director. Topshop made 9 million pounds. In 2005, they make 110 million.
And while she still has to answer to Green in terms of major decisions, like online shopping and factory locations, she has enough juice to make a few key moves. First, Shepherdson secures the brand as a key sponsor of London Fashion Week. Then, she launches Top Shop to Go, a service that delivers a curated selection of items to customers' homes. She even throws in store parties catered to the company's teenage customers. Shepherdson is riding high, but her success at Top Shop will be just as fleeting as the fashion trend she sells to the masses.
虽然她还需要向Green回答关于重大决策,比如在线购物和工厂选址的问题,但她有足够的权力来进行几个关键的举措。首先,Shepherdson将该品牌确定为伦敦时装周的主要赞助商。然后,她推出了Top Shop to Go服务,该服务向客户的家中提供经过策划的商品选择。她甚至组织了专门为公司青少年客户提供服务的商店派对。Shepherdson正骑在风口浪尖,但她在Top Shop的成功将与她向大众销售的时尚潮流一样短暂。
On October 5, 2006, Shepherdson announced her departure from Top Shop after 20 successful years. The news sparked rumors about the reason behind her exit, with insiders pointing to her troubled relationship with Green - the owner of Top Shop. Just two weeks earlier, Shepherdson gave an interview where she expressed her love for her job, so her sudden departure was surprising.
Some speculate that the final straw for Shepherdson was the announcement of a Top Shop collaboration with Kate Moss, who is a close personal friend of Green's. Allegedly, Green did not consult with Shepherdson before announcing the collaboration. However, Top Shop denied these allegations and attributed Shepherdson's departure to a simple desire for change.
有些人猜测 Shepherdson 离开的最后一根稻草是 Top Shop 宣布与 Kate Moss 合作,而 Kate Moss 是 Green 的亲密好友。据说,在宣布合作之前,Green 没有与 Shepherdson 商量。然而,Top Shop 否认了这些指控,将 Shepherdson 离职归因于简单的想要变化的愿望。
While Shepherdson contemplates her next move, Top Shop must find its footing without her. With the increasing speed of industry innovations that decrease the time it takes to get a trend from the runway to the shopping mall, they must adapt quickly or risk being left behind.
In the next episode, we will explore Top Shop's scrappy origins in H&M and compare it to Zara, a Spanish company with a unique way of doing business. We'll also take a look at Forever 21, a new American challenger in the fast-fashion industry.
Listeners who are Prime Members can enjoy every episode of Business Wars ad-free on Amazon Music. The Amazon Music app is available for download today, or you can listen ad-free with Wondery Plus in Apple Podcasts.
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Before you go, complete a short survey about yourself at Wondery.com/survey. Finally, a quick note about the recreations you've been hearing: in most cases, we can't know exactly what was said, but they're based on historical research.
This is episode one of "Fast Fashion" on Business Wars. I'm David Brown, your host. Aaron Conley wrote this story, Michelle Philippi provided voice acting, and Karen Lo was our senior producer and editor. Emily Frost edited and produced the episode, with sound design by Kyle Randall. Our producer is Dave Schilling. Jenny Lauer Beckman and Marshall Lui are the executive producers, with Ernon Lopez creating the show for Wondery.