H&M’s new brand & Other Stories launches today on London’s Regent Street as part of the retailer’s multi-brand strategy to compete with Inditex.
Verdict clothing analyst Kate Ormrod offers her insight on how the move will widen H&M’s appeal and attract more affluent shoppers. Expect everything from skincare to skimpies
“& Other Stories cements H&M’s fashion forward stance but widens its pricing architecture away from the value end of the market – attracting shoppers with higher disposable incomes or those that want to trade up for added value. The new fascia will widen H&M’s appeal to consumers in their 30s and 40s – better competing with Zara’s mix of fashion and strong tailoring. This will give H&M greater insurance against demographic shifts as well as changing patterns in spending power, particularly as younger consumers remain under significant pressure due to high youth unemployment and poor economic prospects.
“H&M’s move to launch & Other Stories via physical stores and an e-commerce site simultaneously is logical and will enable the retailer to gauge demand for new stores. It shows how its online strategy has advanced – though there is still room for further enhancements. H&M has created significant buzz around the new brand, with social media content on Facebook, Twitter and Tumblr to generate excitement and give consumers a taste.
Sister brand COS
“& Other Stories must have its own clearly defined brand personality and be sufficiently differentiated from its sister brand COS – which has a stronger design aesthetic than other brands in H&M’s portfolio. However more of a focus on accessories such as shoes, bags and jewellery, and complementary items such as makeup and skincare, means & Other Stories can carve its own niche in the UK.
“Despite formidable competition from Zara, Reiss and Whistles, & Other Stories has sufficient clout and brand awareness to make an impact. With a successful brand launch expected, H&M must take advantage quickly and roll out the concept with greater confidence than its cautious approach with Monki and Weekday.
–Kate Ormrod, Retail Analyst – Verdict Research