H&M stays mum on new model
In this article (5)
Sweden’s H&M has revealed it’s engaged on a brand new retail model – nevertheless it gained’t say what it’s for now.
CEO Karl-Johan Persson has stated in an interview the brand new retail idea can be utterly totally different to H&M and its sister manufacturers, which embrace Monki, Cos and Low cost Monday.
Persson hinted the brand new idea could also be unveiled in 2017.
Cos is positioned as a excessive road model slightly pricier than H&M, concentrating on an older demographic and a bit of extra minimalist in design.
Monki is aimed toward teenagers and younger ladies with daring, mischievous retailer designs and story telling decor.
Low cost Monday is primarily a denim model, whereas Weekday positions itself providing Scandinavian type.
Persson says the aim of secondary manufacturers is to permit H&M to check ideas and tendencies at totally different worth factors.
Nils Vinge, from H&M’s investor relations division says the corporate has a improvement staff solely targeted on new ideas however acknowledged to media there are “some concrete issues” being thought-about presently.
Archrival retail model Zara, a part of Spain’s Inditex, has expanded out of style into homewares with a rising community of Zara Residence shops. So it’s conceivable that H&M’s subsequent model won’t be
Questions & Answers
Q.Which specific H&M brands already exist, and what are their target demographics or styles?
Which specific H&M brands already exist, and what are their target demographics or styles?
H&M's sister brands include Monki, Cos, and Cheap Monday. Cos targets an older demographic with a pricier, minimalist style. Monki aims at teenagers and young women, while Cheap Monday is primarily a denim brand.
Q.What is the primary strategic purpose of H&M developing these secondary brands?
What is the primary strategic purpose of H&M developing these secondary brands?
The CEO states the goal of secondary brands is to allow H&M to test concepts and trends at various price points. This helps the company explore different market segments and retail approaches.
Q.When might this new retail model from H&M potentially be revealed to the public?
When might this new retail model from H&M potentially be revealed to the public?
CEO Karl-Johan Persson hinted the new retail concept might be unveiled at some point during 2017. The company is currently considering concrete ideas for its development.
Q.Has H&M given any indication whether the new concept will be fashion-focused or something different?
Has H&M given any indication whether the new concept will be fashion-focused or something different?
The article suggests the next brand might not be fashion-focused, citing rival Zara's expansion into homewares. The new concept is described as completely different from H&M and its current sister brands.