best global brands
Posted by Stephanie Startz on September 25, 2009 01:55 PM
How does a retailer lure shoppers into stores when consumers are resigned not to spend? Clothing retailer H&M has managed to increase sales 13% in the last quarter, thanks to consumers "attracted to markdowns," announcing a 4% profit last quarter. Despite an 11% like-for-like decline in August sales, the discounter's recession-friendly proposition of fast fashion at affordable prices aided the brand's rise in Interbrand's Best Global Brands 2009, gaining 11% in Brand Value and jumping up one spot, to 21.
According to the Interbrand, H&M plans to add up to 7,000 new jobs and open 225 new stores worldwide. The brand plans aggressive expansion into the Asia-Pacific and Russian markets, which have weathered the economic crisis better than some regions, and should be welcoming. In Japan, consumers have shown a cultural shift away from status obsession, and are now much more open to affordable brands.
The retail chain's drop in August sales is due to some cautious planning by H&M, according to UBS Analyst Andy Hughes: “H&M seems to have run out of Spring/Summer stock as a result of very cautious budgets. Other retailers have been equally cautious but have been able to chase stock to avoid this."
While the retailer is taleted at keeping up with the waxing and waning tastes of fashionistas, the store is behind the technological times. H&M recently announced plans to launch a transactional website for the UK in Fall 2010, with a current operation available to shoppers in select European countries.
Still, H&M's appeal remains strong. Besides its discounts on top of already-affordable prices, H&M appeals to a wide consumer base through the sale of basics, on-trend styles, and guest-designer capsule collections that have generated buzz for the retailer. Their latest collaboration with Jimmy Choo, which debuts in November, should drive foot traffic to stores.
| Privacy Policy | About Us | Contact Us | FAQ 
