H&M to expand third-party brand offering to take on rivals

Fast fashion retailer H&M is believed to be upping its third-party brand offering both online and in store as it looks to increase its competitive edge over rivals.

Through its freshly launched marketplace strategy, the company already offers a range of notable brands among its third-party labels, including Adidas and New Balance, as well as H&M Group brands Arket and Cos.

Its external brands now total 70 across six markets, CEO Helena Helmersson told Reuters in an interview, in which she added: “This has been really well received by customers who also complement the H&M assortment with other brands.”

She continued: “Now we need to focus on making sure that we have the right kind of backbone, for example the right logistics, to really secure profitable growth.”

With its marketplace-mindset, H&M is looking to challenge other online rivals like Zalando, Asos and Shein, which each take a similar multi-brand approach.

The news comes as the H&M Group reported a 9 percent increase in net sales in the first half-year to 112,488 million SEK, while for the second quarter net sales rose 6 percent to 57,616 million SEK.

Commenting on the results, Helmersson said: “We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year.

“With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10 percent.”