The new denim pieces, made from recycled cotton and organic cotton, include for women three styles of jeans, from skinny to distressed “girlfriend” jeans, plus a denim jacket, flared dungarees and a denim jumpsuit.

“No company, fast-fashion or not, can continue exactly like today”, Persson said.

In addition to adding mass amounts of cheap, lightly worn clothing to landfills, H&M is concerned with future shortages in resources, such as cotton, which requires large amounts of water and pesticides, according to Reuters.

Hennes & Mauritz (H&M) is awarding a €1m grant to five people who can provide the best new ideas for recycling clothes, the company’s chief executive Karl-Johan Persson announced on Tuesday.

The company’s revenues have doubled since 2006, up to €15.8bn in the year to November 2014, which makes it the second biggest fashion retailer after Spanish Inditex.

Anne-Charlotte Windal, a Bernstein analyst, said the model will only work if the industry encourages very frequent purchases, but the consumers are already aware of the increasing effect of garment waste to the environment.

H&M, (a global fashion retailer), will open a new store at Coastal Grand Mall in Myrtle Beach. Two years later, the recycling incentive has come to fruition.

Currently, H&M uses 20 percent recycled material on their clothes, yet, the company aims to increase this percentage without sacrificing the quality of the merchandise.

Britain’s Marks & Spencer and Italy’s Calzedonia also aim to find ways to solve the problem in recycling cottons.

However, others believe that recycling is just a distraction from the real challenge of the fashion industry: persuading customers to keep wearing their clothes for longer.

On a much smaller scale, Finnish entrepreneurs Pure Waste Textiles have managed to produce sweat shirts from 100 percent recycled cotton after improving existing recycling techniques and by recycling offcuts from clothes factories.