H&M Tries To Reach Out To Upmarket Shoppers To Regain Its Ground Lost To Shein.
Shein has emerged as a major player and the number one revenue earner in the fast fashion world. In the process, the Chinese brand has left big names like Zara and H&M behind.
H&M is now trying to reach out to more upmarket or aspiring shoppers to regain its lost ground.
If you observe the moves of H&M closely, you will know how many known faces wore shimmery outfits from H&M at the Silencio nightclub during the Paris Fashion Week.
Among the names to wear H&M outfits were Peggy Gou, a South Korean DJ, the Swedish singing star Robyn, and Cher, a pop icon.
Among the esteemed personalities to be present at this event were Elle Fanning, Jared Leto, and Irina Shayk.
These shimmering outfits were from the latest collaboration of H&M. These outfits were designed by Paco Rabanne, the late fashion designer.
He is the trailblazing designer behind the sequins and chainmail fashion that started in the 1960s.
This event proves how H&M is trying to reach out to more upmarket or aspirational shoppers who are inspired by runway fashion.
This is a great way to shift from the saturated market of fast fashion and avoid direct competition from Shein. In this way, H&M will get a chance to boost its revenue margin and build back a new user base.
Adil Shah, the portfolio manager of Storebrand at Oslo, which is a shareholder of H&M, says,
“There’s no doubt that Shein is a disruptor. They have come into the market and grown very fast, which I’m sure has surprised H&M.”
H&M has further taken another way to boost its revenue margin. It has increased the pricing of its products. At the same time, it has offered lesser discounts on its product range.
In this way, the operating margin of the brand has gone up to 5.9% from the margin of 3.9% last year.