The H&M Marketplace is to expand the number of fashion brands selling on their platform, CEO Helena Helmersson told Reuters after publishing their latest figures to investors.
H&M group’s net sales in SEK increased by 9 percent in the first half-year sending the share price upwards, with profits up slightly although margins were trimmed. The company pointed out the negative impact of high raw materials and freight costs, a strong US dollar, increased energy costs and the effects of winding down the operations in Russia.
The results were attributed in part to selling external brands in a number of business units both online and in stores. This according to Helmersson has been well received by customers who are welcoming the increased assortment.
Over 70 brands are available on H&M channels, including the likes of Adidas and New Balance, and the aim is now to increase the number of brands selling on the platform.
H&M will also start to offer their own private label products on other marketplaces, for instance the intention is to offer their Monki brand on Hong Kong based fashion marketplace Zalaro.
H&M have migrating to operate as a marketplace for some time, starting in the German and Swedish territories as a way to remain competitive against rivals in the face of tough competition online and falling footfall in stores, even before the pandemic hit.
Today’s consumers, especially with the squeezing of consumer spend, means they are seeking alternatives and more likely to shop across multiple sites rather than stick with their favourite brands, and so offering greater assortment to attract and keep customers on their own marketplace coupled with launching select brands on other marketplaces is one way to expand their reach and retain market share.
