The clothing retailer H&M keeps margins low and turnover high by ________.
A) outsourcing production
B) relying on local suppliers
C) using third-party designers
D) investing in vertical integration
E) managing advertising expenditures

Question

Quizplus · Accepted Answer

H&M keeps margins low by outsourcing production to countries where labor costs are lower. This enables them to offer affordable prices to their customers and maintain high turnover.

The Clothing Retailer H&M Keeps Margins Low and Turnover High