Fast fashion retailer H&M is said to be looking to expand its third-party brand offerings both online and in-store to increase its competitive advantage over its competitors.
Through the recently launched marketplace strategy, the company already offers a number of well-known brands, including Adidas and New Balance as well as the H&M group’s own brands Arket and Cos.
The number of external brands now stands at 70 in six markets, CEO Helena Helmersson said in an interview with Reuters news agency. “This has been very well received by the customers, who also complement the H&M range with other brands,” says Helmersson. “Now we have to focus on having the right foundation, such as the right logistics, to really secure profitable growth.”
With its marketplace mindset, H&M aims to challenge other online rivals like Zalando, Asos and Shein, all of which have a similar multi-brand approach.
The news follows a 9% increase in H&M Group net sales in the first half to SEK 112,488 million (about 9,524 million euros) and a 6% increase in net sales in the second quarter to SEK 57,616 million (about 4,879 million euros).
“We increased sales in many markets, despite lower purchasing power and unfavorable weather conditions compared to last year,” Helmersson commented on the results. “H&M Group is strong with a robust financial position, stable cash flow and balanced inventory. Our Long-term goals remain in place. The operating margin should reach ten percent as early as next year.”
This post originally appeared on FashionUnited.uk.