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 Sweden is rapidly emerging as a leader in artificial intelligence (AI), particularly within the healthcare sector and public services. With robust governmental backing, strategic partnerships, and a focus on ethical and sustainable AI, Sweden is setting a global benchmark for responsible AI deployment. This article explores the nation's AI initiatives, highlighting key projects, collaborations, and the transformative impact on various sectors. AI in Swedish Healthcare: A Paradigm Shift Information-Driven Healthcare Initiative AI Sweden's Information-Driven Healthcare initiative aims to revolutionize patient care by leveraging AI to create more personalized and scalable healthcare solutions. The program focuses on: Identifying barriers and enablers for AI integration Exploring privacy-preserving AI applications Evaluating ethical and legal implications Key partners include Karolinska University Hospital, Sahlgrenska University Hospital, and Halmstad University, am...

H&M: sells second-hand clothing

Posted by kite·chase·r

H&M’s Second-Hand Revolution: Sustainable Fashion in the Retail Landscape


So far I've written about some of Sweden's most iconic companies such as IKEA, Volvo, Ericsson, and Sportify. I've focused on what makes these companies unique or interesting, rather than what everyone knows. This article is about another iconic company, H&M.  

I had some of colleagues who moved to H&M's headquarters in downtown Stockholm years ago in marketing, eCommerce, and finance, so I got to hear a little bit of inside and its business. Even though  I don't use the brand- my boys wear some- and I don't work for a company in the fashion industry, it is familiar to see their stores anywhere here in Sweden.

The truth is, H&M's clothes aren't expensive and their quality isn't great. I think it's positioned as a consumer-oriented brand that adapts to fashion and trends quickly and at a reasonable price. From my little knowledge of fashion and textiles (read the preivous post), having worked in my father's textile factory many years ago, H&M's quality level is not high, but the cost is probably very low compared to the selling price.  It's easy to imagine how much a round t-shirt from a third country of origin would cost. Under a dollar (roughly 10 SEK) as CGS (Cost of Goods Sold) is quite possible. So what if you wear it, sell it as second-hand, then buy another second-hand at their store or their web site?

H&M’s Second-Hand Revolution: A Unique Business Model That Builds Loyalty

Sustainability is no longer just a trend—it’s a movement. H&M has taken second-hand shopping to the next level with two unique models: Sellpy (online resale) and H&M Pre-Loved (in-store second-hand shopping). These initiatives not only cater to the growing demand for circular fashion but also strengthen brand loyalty and consumer trust in H&M’s commitment to sustainability. See my post about sustainability in fashion industry.


Why This Business Model is Unique

Unlike traditional fast fashion retailers, H&M has integrated second-hand resale directly into its business model. Instead of just producing new clothes, they are actively keeping garments in circulation, reducing waste, and creating an ecosystem of new and pre-owned fashion.


Why H&M does this second-hand business:

  • Directly linked to H&M’s main business: Unlike third-party resale platforms (e.g., ThredUp, Vestiaire Collective), H&M’s second-hand programs are seamlessly connected to its brand.
  • Accessible pricing: Many luxury brands have second-hand resale (e.g., Gucci Vault, TheRealReal for Chanel), but H&M makes sustainable fashion affordable for the mass market.
  • Circular fashion leadership: While brands like Patagonia and Levi’s have their own resale programs, H&M’s scale and global reach make its model more impactful and accessible.

By embracing both digital (Sellpy) and physical (H&M Pre-Loved) second-hand models, H&M ensures that sustainable shopping is convenient for everyone—whether you prefer thrifting online or in-store.


1. Sellpy: The Digital Gateway to Circular Fashion

If you love online thrift shopping, Sellpy can be go-to resale platform. With over 1.6 million quality-assured second-hand items, you can easily buy and sell pre-owned fashion without hassle.

How It Strengthens H&M’s Brand & Loyalty:

  •  Sustainability made easy: Consumers feel good about supporting a brand that promotes circular fashion.
  • Convenience: H&M ensures selling is frictionless, which encourages more people to participate.
  • Expands reach beyond H&M shoppers: Sellpy sells various brands, exposing new consumers to H&M’s ecosystem.

Swedish site at Sellpy

2. H&M Pre-Loved: A Premium Second-Hand In-Store Experience

For shoppers who love in-person thrift hunting, H&M Pre-Loved offers a more curated and stylish experience than typical second-hand stores.

Swedish site at Pre-Loved


How It Strengthens H&M’s Brand & Loyalty:

  • Creates a premium second-hand shopping experience: Attracts customers looking for unique and rare pieces.
  • Tech-enhanced experience: Self-checkout, RFID inventory, and smart fitting rooms make second-hand shopping feel modern and exciting.
  • Encourages repeat visits: Frequent in-store rotation means shoppers return often to discover new treasures.


How Sellpy & H&M Pre-Loved Compare to Other H&M Brands

H&M Group owns several brands targeting different market segments. Here’s how its resale initiatives stack up:

  • Sellpy (H&M-owned): Budget-conscious & sustainability-focused shoppers, Online resale platform, Sells H&M and other brands' pre-owned items
  • H&M Pre-Loved: Trendy thrift shoppers, In-store second-hand shopping, Curated pre-owned collections
  • H&M (Main Brand): Mass-market fast fashion, New clothing production, Some items are resold via Sellpy/Pre-Loved
  • COS: Minimalist, premium fashion, Higher-end, timeless designs, Circular initiatives include resale & rental
  • ARKET: Eco-conscious, Scandinavian style Sustainable, durable clothing Some stores have resale sections
  • Weekday:  Edgy, youth-oriented fashion, Trend-driven clothing, Limited second-hand offerings
  • Monki: Playful, Gen Z fashion, Affordable, bold designs, No resale program yet, but aligns with sustainable efforts

H&M’s second-hand strategy doesn’t just sell used clothes—it builds a sustainable brand ecosystem. By offering pre-owned options, H&M extends product lifecycles, strengthens customer trust, and differentiates itself from competitors.


The Bigger Impact: How This Drives Brand Awareness & Customer Loyalty

1. Builds Long-Term Consumer Trust

Consumers today demand transparency and responsibility from brands. By leading in second-hand fashion, H&M reinforces its commitment to sustainability, making shoppers feel confident in supporting the brand.

2. Converts Second-Hand Shoppers into H&M Customers

Many Sellpy users may not have shopped at H&M before. By introducing them to H&M’s affordable and circular fashion model, these shoppers may eventually explore new collections from H&M’s other brands.

3. Creates a Unique Competitive Advantage

While many fast-fashion brands focus only on selling new items, H&M has successfully integrated new and pre-owned fashion under one umbrella. This positions H&M as a leader in the shift toward responsible fashion consumption.


Conclusion: H&M is Changing the Future of Fashion

With Sellpy and H&M Pre-Loved, H&M is proving that fast fashion and sustainability can coexist. These second-hand initiatives not only make circular fashion accessible but also strengthen consumer loyalty and brand awareness.

By shopping second-hand through Sellpy or H&M Pre-Loved, you’re not just getting a good deal—you’re joining a movement.