![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>\n<\/p>\n
Fast-fashion giant H&M recently unveiled the autumn\/winter 2024 collection from its atelier spinoff H&M Studio. <\/p>\n
The limited-edition fashion drop signals the brand is \u201creturning to its roots and reconnecting with its community through a global \u2018re-ignition\u2019,\u201d H&M\u2019s head of design Eliana Masgalo told Vogue Scandinavia<\/em>.<\/p>\n But what does that really mean for the fast-fashion brand’s broader business?<\/p>\n \u201cWe\u2019re going back to our core,\u201d Masgalo stated. \u201cWe have such a strong heritage, and we\u2019ve been on the market for many years. We\u2019re not rebranding, but re-igniting, re-energising, and re-boosting what we\u2019ve always stood for: fashion.\u201d<\/p>\n H&M is one of the world\u2019s largest apparel brands, with over 4000 stores spread across the globe, but thanks to growing competition from fast fashion players, it has been struggling to hold onto its once-primary position. <\/p>\n \u201cH&M has been through a difficult time. The brand has become stale and feels tired, as such it has been hit fairly hard by the slowdown in apparel and much more intense competition in the fast fashion space,” Neil Saunders, managing director and retail analyst at GlobalData, observed. <\/p>\n H&M is caught in an awkward space where it is not able to produce clothing at rates as quickly or as affordably as players like Shein and Temu, nor does it entirely have the elevated image of competitors like Zara, which can command higher prices. <\/p>\n Between 2019 and 2023, H&M\u2019s sales were virtually flat, totaling about $23 billion last year. To provide a point of comparison, in that same period, Inditex, which owns Zara, saw sales expand by 27 per cent, to roughly $40 billion last year.<\/p>\n To combat this, H&M is attempting to embrace a middle-of-the-market value proposition and \u201creignite\u201d its image via a full 360-degree rebranding mission.<\/p>\n This includes a sleek, image-led overhaul of the company\u2019s site, renovations of 250 of the brand\u2019s some-4000 stores in the coming calendar year, and increased local manufacturing capabilities to improve the company\u2019s ability to chase trends.<\/p>\n The apparel retailer will also be implementing radio frequency identification (RFID), in an increasing number of stores to allow for better inventory visibility and more efficient product replenishment.<\/p>\n In an interview with the Business of Fashion<\/em>, H&M\u2019s CEO Daniel Erv\u00e9r, commented, \u201cAs a customer, you will feel that H&M has a different confidence, a different level of inspiration and a different level of energy than you might have felt in the past.\u201d<\/p>\n To celebrate the launch of H&M Studio\u2019s latest collection, the fast-fashion powerhouse enlisted the help of British musician Charli XCX to channel a bit of her Brat energy.\u00a0<\/p>\n The \u201cBoom Clap\u201d singer is part of H&M Studio\u2019s editorial campaign, which also features model Lila Moss wearing pieces from the collection. <\/p>\n Charli XCX kicked off a three-month-long series of celebrations with H&M, which will include pop-up shops and live music performances, with a performance at London Fashion Week.\u00a0<\/p>\n While the performance, which was open to the public, was a runaway hit with the crowd, some fans and fashion critics have disapproved of the partnership, noting that it\u2019s not very \u201cbrat\u201d of Charli XCX to endorse the fast-fashion giant.\u00a0<\/p>\n One open critic is “your favourite artist\u2019s favourite artist” Chapell Roan, who seems to reflect the more sustainably-minded values of Gen Z. <\/p>\n The \u201cPink Pony Club\u201d singer explained why she is saying “no” to most brand deals: “I’m like, ‘Does it fit in this world?’ No, H&M does not fit in this world.\u201d<\/p>\n It will take more than a cool concert and a spiffy marketing campaign to convince younger consumers to go to H&M for their next fashion fix. <\/p>\n Retail experts like Melissa Minkow, a director of retail strategy at CI&T, are wary of H&M\u2019s strategy of establishing a \u201cmiddle ground\u201d in the fast-fashion market. <\/p>\n Minkow noted, \u201cI feel as though H&M\u2019s positioning is already pretty solidified as \u2018upscale fast fashion,\u2019 or middle market.\u201d<\/p>\n Minkow also pointed out that \u201cmid-range apparel struggled for a long time as income bifurcation expanded the gap between lower and higher income consumers so drastically\u201d.<\/p>\n The retail strategist observed that H&M\u2019s competition in this space includes mid-range brands like J Crew, Gap, and Abercrombie & Fitch, which have also been diving into their comeback campaigns. She also pointed out that consumers who care about sustainability are unlikely to perceive H&M as anything but fast fashion.<\/p>\n \u201cThe price point and a spokesperson [like Charli XCX] wouldn\u2019t be what changes perception, Minkow advised. \u201cPerception will change if they overhaul their sustainability efforts to a standard that is respected by the consumer. There would have to be much more transparency surrounding their sourcing and manufacturing approaches.\u201d<\/p>\n Saunders told Inside Retail<\/em> that H&M\u2019s collaboration with Charli XCX is part of a bigger effort to enhance its \u201ccultural relevance\u201d and \u201cput it back on the consumer radar\u201d.<\/p>\n \u201cIn a way, it is H&M going back to its roots by doing something bold and imaginative,” he said. “The fact that the new line has been launched with a number of high-profile events underscores the importance H&M attaches to it.\u201d<\/p>\n However, Saunders warned that \u201cone collaboration alone will not be enough”. <\/p>\n “H&M has to reimagine the in-store experience and increase the quality and frequency of new fashion drops on an ongoing basis. This is one step in a much longer journey,” he said.<\/p>\n The post Can Charli XCX help change consumers’ perception of H&M? appeared first on Inside Retail Australia.<\/p>\nAn increasingly competitive fast-fashion sphere<\/h3>\n
How H&M is trying to channel \u201cBrat\u201d energy<\/h3>\n
How can H&M stand out amongst its competitors?<\/h3>\n