H&M adding third-party brands to attract shoppers

H&M is adding more third-party brands to its stores and websites to attract more paying customers. The Swedish retailer launched its marketplace strategy last year to help it compete against rivals including ASOS, Shein, Temu and Zara. H&M has added 70 outside brands to its platform in six markets. The retailer reported better-than-expected profits in the last quarter due to its external brand strategy. “This has been really well received by customers who also complement the H&M assortment with other brands,” said CEO Helena Helmersson.

H&M USA Soon to See a Shift

H&M USA will soon see stores take a different direction as the global brand expands its inventory to accomodate growing competition.

While the largest fast fashion brand Shein is facing allegations of human rights violations and toxic chemical in their products, H&M is choosing to carry quality and recognizable brand names for the first time.

These brands are building off shoes from Adidas and New Balance, along with Swedish name brands like Klättermusen, an outdoor mountaineering clothing label.

Reuters reports that, “H&M also said its Monki brand would launch on Hong Kong e-commerce site Zalora, indicating the company’s willingness to increase its presence on third-party platforms, again in contrast with Inditex’s Zara.”

This move will also further differentiate H&M from Zara, which now features higher-end costly items as a result of exclusive collaborations with other famous brands such as South Korea’s Ader Error and Britian’s Clarks.