H & M Collaboration Analysis

1000 Words 4 Pages
Rolf Ericsson, the CEO of H&M stated their long-term goal in 2008 annual report that “Make fashion available to everyone, give the customer a fashion experience that strengthens H&M brand” (H&M, 2008). Collaboration is exactly adopted as a long-term business strategy bored from this vision. We intend to analyse the influence in H&M brought by its collaboration practices from several aspects.

Innovation capability
Throughout the collaboration history of H&M, there is a common characteristic shared by collaborating brands is that these brands are all luxury designer brands. This is a continuance of H&M in spirit of innovation. In apparel industry, designer is always the core innovation power and image of a brand, therefore, the collaboration
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A major reason is that theses collections make them access to luxury at affordable prices and a higher quality although they know it cannot be compared the collaborations with mainlines of luxury brands. Another reason is that the hype about the H&M luxury collaborations and promotional articles written by fashion magazines or bloggers so that purchasing the collaborations becomes a fashion trend. Those collaborations celebrities worn always become the most popular items because customers easily get the feeling of pride from wearing those star styles. Without doubt, there are huge margin behind this fashion fever. During the limited sale time of the collaboration, physical stores of H&M were always overwhelmed and website was also placing shoppers in a virtual queue even resulting in many items sold for inflated prices on eBay (Reuters, 2013). Luxury brands emerging mass market has a positive effect on changing customers’ passion of buying the collaborations to an enhanced loyalty to H&M, which is a good solution to hold and extend its market share in fast fashion. In addition, celebrities H&M collaborated with, like Rihanna, David Beckham, also works in appealing their fans, which is also a huge potential …show more content…
Because of the interiorized identity in the past, H&M is facing a challenge of upgrading its brand structure. For example, Inditex, also coming from Europe, has a more comprehensive brand structure than H&M. Its market area is more international compared with H&M, mainly relying on European sale (see appendix 2). Although H&M has COS and &Other Stories two brands focusing on middle and high level market, their market performance and influence of brand are both poorer than Zara, since the first impression of H&M embedded in customers’ minds to some extent. Designer collaboration is an effective way to build a better brand identity with a short time and the fact shows that it truly works. Many customers choose H&M from those high street fashion brands because they think more choices provided in H&M, from basic clothing to more fashionable trends and limited-edition collections added specialty to this brand (Ginman, Lundell, & Turek,

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