H&M Diversifies Supply Chain to Reduce Tariffs
Faced with potential import tariffs from the United States, H&M is actively pursuing suppliers closer to its European and U.S. markets. The move aims to bolster supply chain resilience and enhance responsiveness to customer demands.
"Our focus on regionalizing our supply chain stems from geopolitical factors, lessons learned from COVID-19, and the need to support customer offerings," explained Adam Karlsson, H&M's finance chief.
The retailer is considering expanding its sourcing base in Central America for markets such as the U.S. and Brazil. For Europe, H&M is increasing procurement from Turkey and seeking to establish suppliers in Morocco and Egypt.
Highlighting the impact of U.S. tariff threats, Karlsson stated that it remains a "concern" and that H&M is actively monitoring the situation. The company's diverse sourcing strategy provides an advantage in this regard.
While H&M has not released country-specific sales figures for 2024, the U.S. was its second largest market by sales in 2023, contributing 14% of total revenue.