H&M, a Master of Cheap Fashion, Moves Upscale

H&M is an apparel chain based in Stockholm which features fun and affordable fashions. It counts on its ability to continually changing assortment of rock-bottom-priced goods to help keep consumers interested. However, it is still losing ground to its number one rival Iditex, parent of the Zara chain.

To combat the lost in market shares, H&M introduces & Other Stories which feature fashions H&M’s own ateliers in Paris and Stockholm. Its main focus is featuring fancy and trendy accessories. In Europe, it shown that sales of bags and costume jewelry are forecast to grow more than 13 percent through 2017, twice as fast as clothing.

It is shown in the article that H&M had to adjust its strategy to align to the market demand. This is proven by & Other Stories’ early sales figures which exceeded expectation. H&M is looking to open more & Other Stories stores in the near future.

http://www.businessweek.com/articles/2013-04-25/h-and-m-a-master-of-cheap-fashion-moves-upscale

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