The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
H&M announced on Thurday 30th March the launch of a new brand rooted in “style beyond trend.” Bernadette Kissane, apparel and footwear analyst at Euromonitor International, comments:
“The announcement of H&M’s new brand Arket comes at an interesting time. While the company has been teasing consumers with the potential launch of a new brand for a while now, the concept of Arket is quite unlike anything we’ve seen from the company before. The company’s results have been falling short of expectations recently, consistently outpaced by key rival Inditex and illustrated in its latest annual report with a drop in pre-tax profits. Rather than adopting a faster sourcing strategy to compete, the company has opted to introduce new brand Arket to effectively cater to shifts in consumer behaviour, while simultaneously making progress towards the company mission to develop a more sustainable business model.
The Arket brand is posed to provide timeless, functional fashion in a setting that is complimented with a Nordic style restaurant offering healthy food, suggesting it has the potential to tap into the minimalistic, health conscious consumer that is increasingly demanding high quality fashion that functions well and supports them throughout their day. Perhaps more interestingly, it’s the company’s decision to host third-party brands in store, aiming to create a convenient shopping experience for time-restrained consumers. On paper this new shopping format sounds promising, taking into consideration the rapid shifts in consumer trends and fashion retailing, and may well provide H&M with the leverage to gain back some lost market share.”
The global apparel and footwear specialist retailing channel saw limited movement in 2016, reflecting the large scale of its leading players. In many cases, share growth was driven by store expansion, as was the case for H&M. The top 10 players generated 15% of global sales in 2016, up from 13% in 2014, as consumers turned from independent operators to the slicker, more sophisticated offer of the chains.
Interested in fashion retailing? Join Euromonitor free webinar March 30 at 3pm GMT http://bit.ly/2obtqPL – in association with WWD Retail 20/20 Forum: London.