H&M Will Sell The External Brand Goods Will Be A New Transformation And Challenge.

In September 16th, Sweden's fast fashion giant H&M announced that its fashion brand H&M will start selling products of the group's external brands.

H&M did not disclose more information, but according to an announcement, H&M brand is inviting fashion brands to join in order to increase the vitality of H&M, attract more new customers and enhance sales performance.

According to German Bloomberg bank analyst estimates, although H&M group's third quarter sales increased by 8% over the same period last year, sales growth slowed in seven or eight months, compared with sales growth of 12% in June, sales growth slowed to 6% in seven or eight months, resulting in H&M share price dropping nearly 3.2% on the day of issue.

H&M launched too many new series of costumes in the third quarter, while consumer demand for new products has declined, resulting in increased inventory pressure. To ease the pressure on the stock market, H&M has taken price promotions to reduce the price of tight jeans to $5.99, and the price of the tie dress has been reduced to $17.99.

In addition to inventory pressure, the Swedish kronor depreciation has also increased procurement costs to a certain extent. Considering the importance of the international market for H&M, kronor's depreciation will have a negative impact on H&M's profitability.

H&M plans to release detailed financial data for the third quarter in October 3rd.

With the development of Internet business, some fashion retailers began to seek transformation from traditional single brand retailers to multi brand retailers. For example, Next Plc, a British clothing retailer, has developed from a single brand retail platform to a multi-component retail platform, selling clothing, footwear and household goods from different suppliers ten years ago.

As the world's second largest fashion retailer after Spain's fast fashion brand Zara (SA LA) Inditex, H&M group's profits have declined for three consecutive years. Seeking transformation may be the best choice for H&M.

Previously, some small brands of H&M group, such as &Other Stories and Arket stores, have started selling other brands of external brands. As the core of the group's fashion brand, the sale of external brands will undoubtedly be a new transformation and challenge for H&M. It will compete with other multi brand e-commerce platforms, such as Germany's largest e-commerce platform Zalando, Britain's largest fashion shopping platform ASOS.