H&M to embrace marketplace model as a test case

H&M are set to embrace a marketplace model as a test case to enable brands to sell products on the platform, following business model examples of retail heavyweights such as Amazon and ASOS.

The Swedish multinational clothing-retailer will trial the new trading model in an omnichannel manner. The move will see the retailer planting sellers’ products both in-store and online, giving brands a maximum exposure to their products but also blending the best practices of ecommerce and physical trading.

The retailer’s website will see a curated selection of external brands to complement the H&M offering to give shoppers a wider product assortiment.

Tamebay have contacted the retailer to find out more, but it seems like they are still keeping their plan under the covers.

We will start offering selected external brands and products at H&M. We will be adding a curated selection of external brands that complement their customer offer. This is a test that will run online and in selected stores in selected markets.”
– H&M.

H&M Group retail arms including & Other Stories and Arket are already selling external brands online and in-store. The move is underscoring the success of the aggregation model, adopted by leading marketplaces such as eBay, Amazon, Etsy and more which sees shoppers using a single platform to purchase services and products from multiple businesses.

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This sounds really screwy. So, H&M is going to compete against Amazon clothingThe world doesn't need another "clothing" retailer online. Macy's is selling Thredup in-store. Urban Outfitters has a subscription service. It's confusing to the consumer, and its all going to backfire. Why don't they all just open thrift stores and stop selling new with tags clothing?

Li • 23rd September 2019 •