Will Fast Fashion Brand H&M Introduce Luxury Consumers To Pay?

As we all know, international

Wallet that is rapidly sweeping Chinese consumers.

The leader of this team naturally counts ZARA from Spain and H&M from Sweden.

The common points of their business are "the big style and the price of the civilian".

H&M, who has been chasing ZARA, is in the direction of "luxury" in front of the enemy.

Every year in the past

We need to cooperate with different luxury brands to launch a series of products, which have caused the craziness of the global consumers. Now they are going to launch their own luxury products.

H&M named &Other Stories for its upcoming luxury series next spring, which covers all the needs of women for their own decoration: from

Children, bags to underwear, beauty and clothing and so on.

But the brand that is based on parity and fast fashion should be launched.

Will China's consumers pay for it?

"Origin" problem

In the past, H&M's series of products with many luxury brands were almost popular with consumers. This is not difficult to see from customers queuing up all night before the sale and the sale website being paralyzed.

But the enthusiasm of these consumers is mostly from the luxury brand that they cooperate with H&M rather than itself.

"It is not hard to understand that the sales frenzy is the result of luxury brands.

The products launched by their cooperation are lower than the price of luxury brands, but they also come from the design of big brands, which satisfies many consumers' luxury psychology.

Insiders analyzed in an interview with reporters.

Today, without the big name effect and purely relying on its own luxury products, H&M seems to face many challenges.

"It is mainly that it (H&M) has a low background, no luxury, and some noble origin. In the eyes of consumers, it has already formed the positioning of a cheap and fast fashion brand. Therefore, the introduction of luxury goods can not form a high-end and luxury concept in the minds of consumers, which is very difficult to overcome in itself."

The industry believes that.

On the other hand, most luxury consumers have psychological aspirations of identity.

In particular, luxury consumers in China will not continue to pay for the brand if they find that there are more low-end products inside the brand.

A luxury brand operation director told the newspaper that the consumption trend of luxury goods industry is developing towards high-end luxury consumption. The relatively small luxury brand market such as Bottega Veneta, Celine and Hermes has developed very well, while some brands of mass luxury goods are facing great challenges.

Besides, expensive luxury goods also carry certain historical, cultural and technological heritage.

Although H&M, which was founded in 1947, has gone through more than half a century of rain and wind, it still does not belong to its own factory. This is not the same as many luxury brands with long history and technological heritage.

Making full use of existing customers

But H&M is not without its own advantages, customer base is one of them.

The business philosophy of providing fashion and quality at the best price has laid a huge customer resource base for H&M.

Not long ago, the company's earnings showed that as of August 31, 2012, sales of H&M group, including value-added tax, rose to 103 billion 20 million kronor in the first nine months of fiscal year 2012 (December 1, 2011 to August 31, 2012), an increase of 11% compared with the same period last year, and sales of similar products increased by 2% over the same period last year.

In addition, H&M will invite mainly from Paris and Stockholm.

Responsible for luxury product design, attention to detail and quality.

At the same time, every season of the luxury series

There is an inspiring fashion story behind it.

In the eyes of the industry, this is likely to be an opportunity for consumers in the European market where consumers generally value the design. However, such an emerging market in China may not be the case, because many consumers who accumulate H&M naturally welcome their own brand upgrade, but they are basically two consumer groups with already existing luxury consumer groups, which can not stimulate H&M's luxury sales.

Previously, H&M targeted the target consumer groups in young people aged 15~30. The characteristics of these young people are low purchasing power and short consumption cycle.

"The most likely success is the introduction of nominally luxuries to give consumers plenty of face, but the target consumer groups are the current consumers who are appropriately priced up to medium and high end prices, with a view to maximizing their current huge consumer resources."

The above luxury operation director said.

According to the analysis, if the middle and low end brands are to launch high-end products up to the top, they will rarely succeed. If the product line is broken down, the high terminal brand will be launched, and the operation of brand dissemination will be appropriate.