H&M, the renowned Swedish fashion retailer, is reaping the rewards of its marketplace strategy, according to CEO Helena Helmersson. The company’s decision to include more third-party brands has proven successful, as indicated by the recently released figures. H&M’s revenue has witnessed a 9 percent growth compared to the same period last year, surpassing analysts’ expectations and resulting in a surge in the stock price.
One of the key factors contributing to H&M’s positive performance is the integration of external brands into its assortment across various formulas, both online and in stores. Brands like Arket, Cos, and & Other Stories have welcomed the inclusion of third-party labels, allowing customers to complement their H&M purchases with products from other renowned brands. This move has been well-received by customers, contributing to the overall success of the company.
To date, H&M offers around seventy third-party labels through its channels, including popular brands like Adidas, New Balance, and Klättermusen, a Swedish mountain bike brand. This expansion of the brand portfolio reflects H&M’s strategic efforts to compete with other ecommerce giants, such as Germany’s Zalando, Britain’s Asos, and China’s Shein.
The marketplace strategy implemented by H&M began last year with the addition of external brands to Hm.com. Building on their prior experience with marketplaces, H&M recognizes the need to address new challenges associated with this strategy, particularly in terms of logistics and securing profitable growth. Helena Helmersson emphasizes the importance of establishing a strong foundation to support the company’s marketplace ambitions.
Looking ahead, H&M is exploring the possibility of including its own brands on other marketplaces. Monki, one of H&M’s labels, is set to be available for purchase on the Asian fashion platform Zalora, further expanding the reach of H&M’s brands and enhancing their presence in the global marketplace.
H&M’s marketplace strategy continues to shape the company’s growth trajectory, attracting customers with a diverse range of brands and reinforcing its position as a leading player in the fashion industry. As H&M expands its marketplace and explores new avenues for growth, the company remains focused on delivering profitable results while adapting to the evolving demands of the digital landscape.