H&M plans to introduce more third-party brands to compete with SHEIN

It is learned that according to Reuters, on July 2, Helena Helmersson, CEO of fast fashion brand H&M, said that H&M plans to introduce more third-party brands in physical stores and online as part of its goal of doubling its revenue by 2030.

Currently, H&M has established partnerships with 70 brands in 6 markets around the world. Consumers can buy sports shoes including Adidas and New Balance, as well as clothing brands such as Swedish mountaineering equipment brand Klättermusen through H&M's Arket, Cos and &OtherStories physical stores and websites.

Helmersson pointed out that the partnership with third-party brands can effectively encourage consumers to buy other brands' products while buying H&M products. The difficulty lies in that H&M needs to have the ability to manage the supply chain, and logistics is an important support.

In 2022, H&M launched its third-party market strategy for the first time. H&M has a wide customer base and a lot of infrastructure around the world, but competition in the field of third-party fashion e-commerce platforms is becoming increasingly fierce, including Amazon, Zalando, Macy's and Shein are actively expanding their third-party market businesses.

In addition, H&M is also willing to introduce its own brands to other third-party platforms. For example, its brand Monki will be launched on Hong Kong e-commerce website Zalora. Compared with H&M's open attitude, fast fashion giant Zara has shown another attitude.

Inditex-owned Zara remains focused on its own brands, stores and online platforms, showcasing other brands only in exclusive collaborations, such as with South Korean brand Ader Error and British shoe maker Clarks. Despite the cost-of-living crisis facing consumers, Zara has refrained from cutting prices.

Regardless, expanding the brands, products, and potentially even merchandise categories available to shoppers will help H&M increase customer visits and lifetime value, while also giving it an edge over competitors like Inditex that lack these partnerships.

Editor✎ Ashley/

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