Today H&M has 1,400 stores in 28 countries, including 114 in the US, there it is still a small player but its $687 million in sales in 2006 has retailers such as Banana Republic, Wal-Mart and Abercrombie & Fitch all launching fast-fashion initiatives.
H&M has struggled to compete with Zara’s short turnaround time but that advantage disappeared in Asia. H&M source more than 60% of its products in the region with more than half from China compared with Inditex’s 34%.
Which way should H&M go in China?
H&M should concentrate on the luxury market where Shanghai young people aspire to. Brand names are effective in China as its nouveau riche try to emulate the West’s fashionista. It’s a mistake to discount as young people aspire to luxury. H&M should leverage on its celebrity designers such as Karl Lagerfeld and Stella McCartney.
No comments:
Post a Comment