H&M’s marketplace strategy is yielding positive results, as confirmed by CEO Helena Helmersson. The renowned Swedish fashion company is extending its reach by incorporating a more significant number of third-party brands.
Following the release of new statistics, Helmersson revealed this data to Reuters. H&M has witnessed a surge in revenue, experiencing a 9 percent growth compared to the corresponding period in the previous year. Although the profit margin decreased slightly, the company’s profit increased in the last quarter. The overall performance exceeded analysts’ expectations, leading to a remarkable surge in the stock price.
H&M experienced a 9% increase in turnover for six months.
The favorable outcomes can be attributed partly to incorporating external brands across H&M’s various formulas, such as Arket, Cos, and & Other Stories, both in their online platforms and physical stores. Helena Helmersson stated, “Customers have warmly embraced this addition, complementing the H&M assortment with other brands.”
External brands
At present, H&M offers a selection of seventy third-party labels for customers to explore, encompassing prominent names like Adidas, New Balance, and the Swedish mountain bike brand Klättermusen.
According to Reuters, this expansion of brand offerings intensifies H&M’s endeavors to compete with e-commerce rivals, including Germany’s Zalando, British-based Asos, and the Chinese company Shein.
Ensuring profitable and sustainable growth
At the start of the previous year, H&M included external brands on Hm.com, building upon their prior experience with marketplace collaborations. CEO Helmersson acknowledges that the marketplace strategy brings new hurdles for the company, stating, “Our current focus lies in establishing a robust foundation, including efficient logistics, to ensure sustainable and profitable growth.”
Monki joins Zalora’s platform
In addition, H&M is exploring the possibility of featuring its brands on various marketplaces. One notable example is Monki, a fashion label under the H&M conglomerate, which will soon be accessible for online shopping on the popular Asian fashion platform, Zalaro.
In conclusion, H&M’s marketplace strategy, which involves incorporating a more significant number of third-party brands, has proven successful. CEO Helena Helmersson revealed that the company had witnessed a surge in revenue, experiencing a 9 percent growth compared to the previous year. Despite a slight decrease in profit margin, H&M’s profit showed a modest increase in the last quarter, surpassing analysts’ expectations and leading to a remarkable surge in the stock price. Incorporating external brands across H&M’s various formulas, both online and in physical stores, has been well-received by customers, contributing to positive outcomes. H&M’s expansion of brand offerings is part of its efforts to compete with e-commerce rivals. As the company focuses on establishing a robust foundation for sustainable and profitable growth, it is also exploring the possibility of featuring its brands on various marketplaces, such as Monki joining the popular Asian fashion platform, Zalaro. Overall, H&M’s marketplace strategy has enhanced its competitiveness and contributed to its financial success.
