H&M has opened up its e-commerce sites in Germany and Sweden to third-party brands on a trial basis.
The retailer is testing to see whether a marketplace model will resonate with consumers in the two European countries before it scales the test further.
Third-party merchandise carried on the sites include items from sister brands of H&M, including &Other Stories, Arket, Monki and Weekday. H&M is also involving non-related brands like Crocs, Fila, Lee and Wrangler in the test, carried on a section of the site called “H&M with Friends.” H&M currently has 13 women’s and 15 men’s labels on the German and Swedish sites.
A H&M spokesperson told Fashion Network, which first reported the news, that its choice of the two launch markets was tied to each country’s “long tradition of catalog shopping.” The retailer has had its “e-shop” operating in Sweden since 1998 and Germany for the past 15 years.
The pilot of an H&M marketplace may be new to the retailer but not its parent company. H&M Group launched Afound in 2018. The site, which operates in Austria, Germany and the Netherlands, offers discounts on H&M Group brands and third-party merchandise in the beauty, fashion, interior and sports categories.
H&M offers online shopping in 54 countries, and nearly one-third of the company’s total sales are conducted through its sites. An increased focus on digital does not appear to have negatively affected the company’s bottom line performance. The company reported a gross margin of 52.8 percent for last year, up from 50.0 in 2020.
The fast-fashion marketplace test puts H&M in the company of other large retailers (Amazon, Target, Walmart) that are doing the same. That list will soon include Macy’s, which plans to launch its own curated marketplace in the second half of 2022.
Macy’s signaled its intentions in November. CEO Jeff Gennette said on the company’s third-quarter earnings call that Macy’s marketplace will provide customers with an “even greater breadth of assortment of exciting products to deliver on our promise of style and curation.”
“Our digital business is on track to generate $10 billion in sales by 2023 and that figure does not include the incremental revenue we expect this new marketplace platform to generate,” he said.
FAQs
H&M has opened up its e-commerce sites in Germany and Sweden to third-party brands on a trial basis. The retailer is testing to see whether a marketplace model will resonate with consumers in the two European countries before it scales the test further.
Where does H&M get their clothes from? ›
China: main clothing supplier
As seen in the present graph, China, Bangladesh and Turkey are top three locations where H&M sources its products. This is also true for. In Sweden, where the retailer is headquartered, there are a total of 21 suppliers and factories manufacturing H&M's clothing products and accessories.
When did H&M open online store? ›
H&M continued to expand in Europe and began to retail online in 1998 with the domain hm.com, which was registered in 1997 according to data available via WHOIS.
What is the new strategy of H&M? ›
H&M Group's strategy shift under the leadership of its new CEO, Daniel Ervér, focuses on a balance between lowering prices and elevating design to enhance profitability. The question, of course, is on which products and at which of its portfolio brands can the fast fashion retailer bring costs down?
What is the product diversification strategy of H&M? ›
Product Diversification:
The key component of H&M's product diversification strategy is its extensive variety of clothing options across different categories and price points.
Does H&M sell other brands? ›
The news: H&M will sell more third-party brands in stores and online to help reach its goal of doubling revenues by 2030, CEO Helena Helmersson told Reuters. Branching out: H&M currently has partnerships with 70 brands in six markets, which Helmersson says have been well-received by shoppers so far.
Is H&M the same as Shein? ›
That ultra-flexible supply chain allowed Shein to create a fundamentally different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting what styles shoppers will buy.
Who is H&M biggest competitor? ›
Top 10 H&M Group competitors
- Chico's FAS.
- SHEIN.
- La Redoute.
- Coppel.
- Asos.
- American Eagle Outfitters.
- Lojas Renner.
- Macy's.
The H&M is the abbreviation for Hennes and Mauritz. In Swedish, Hennes means “hers.” The store was designed keeping women in mind. Later on, they started selling men's fashion clothing as well. Hennes acquired Mauritz — the huntsman apparel store, hence the name H&M.
What is the key success of H&M? ›
Robust Supply Chain Management: H&M's supply chain is nothing short of impressive. By maintaining close relationships with suppliers, they ensure timely delivery and optimal quality. This robust system provides the foundation for their fast-fashion model, ensuring a quick turnaround from design to retail. 4.
H&M Goes Digital
Back in 2018, H&M launched a new, improved online shopping platform and mobile app. Similar to Nike, Walmart and LVMH, H&M's new digital shopping channels were designed to compliment physical stores to deliver one, integrated omni-channel shopping experience.
How does H&M attract customers? ›
Through visually appealing advertisem*nts and engaging storytelling, H&M captures the attention of its target audience and reinforces its fashion-forward image. The company also leverages social media platforms to engage with its audience.
What gives H&M competitive advantage? ›
The Secret to H&M's Success: Fast Fashion
Aimed at young, fashion-conscious urban consumers, their products are trendy and they're cheap, bordering on disposable. Fast fashion retailers make their profits by having a high merchandise turnover and by constantly resupplying the product pipeline with the latest trends.
What clothing brand does H&M own? ›
As well as H&M, the group's brands include Afound, ARKET, COS, H&M Home, Monki, & Other Stories, Weekday and most recently, H&M Move.
Is H&M cruelty free? ›
None of our beauty products are tested on animals and we have strict requirements in place for materials of animal origin, such as wool, leather or down.
What does H&M do with unsold clothes? ›
Repurpose & recycle – old clothes and textiles that cannot be resold are repurposed or recycled into new products and fibres. Energy recovery – items that do not fit into the above categories are disposed of in other ways prioritising incineration for energy production.
What makes H&M fast fashion? ›
Fast fashion describes low-priced but stylish clothing that moves quickly from design to retail stores to meet trends, with new collections being introduced continuously. Innovations in supply chain management among retailers make fast fashion possible. Zara and H&M are two giants in the fast fashion field.
