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H&m sets a new course

March 17, 2008

The well-known Swedish fashion company H&M enters a new phase. H&M always followed the same route: cheap trendy fashion. Now they enter a new phase. By buying the upcoming Swedish fashion company Fabric Scandinavien (behind brands like Sunday Sun , Cheap Monday . HM enters a new role as a venture capitalist. Before HM had to produce products to get revenues, now (with acquisitions) they have to control the portfolio of stocks.
This could be a boring, dangerous and reactive way to go. Before they were forced to lead and forge a path, now they can just look and follow. In the long run, this could be a problem: when you fall back and get satisfied, the world around seems to fade away.
The acquisition strategy marks a shift from H&M’s old approach of launching sub brands (or rather sub companies in another category such as COS
Where will it end for H&M? Will it become the new PPR ?

By Claes Foxerus. You can find more writing from Claes here.  He’s also the co-founder and editor of The David Report . And, for those of you looking for Swedish Planning connections Claes is the man, he is the co-founder and secretary of the Swedish APG.

Posted by Ed Cotton

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