1. News
January 31, 2018

H&M launches off-price marketplace to sell other brands

H&M announced it will launch an innovative off-price marketplace this year which it claims to be ‘style- and deal-hunting paradise’ offering a wide range of well-known popular brands for women and men.

By Pamela Kokoszka

H&M announced it will launch an innovative off-price marketplace this year which it claims to be ‘style- and deal-hunting paradise’ offering a wide range of well-known popular brands for women and men.

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Known as Afound, it will sell discounted fashion and lifestyle products from other brands alongside H&M’s own products. Products sold in the marketplace will be a carefully selected, season-less range from Swedish and international brands in a variety of price segments both online and in brick-and-mortar stores. The marketplace will also launch unique, limited product releases from a range of brands at attractive prices.

H&M’s approach to trying to strengthen and recover its brand is different to the approach chosen by high-end fashion brands including Micheal Kors and Ralph Lauren which announced they will be looking to scale back.

“We see big potential for Afound and are looking forward to introducing the marketplace to our audience in Sweden in 2018. Afound cares about both the value of the products and the mix,” said Fredrik Svartling, Managing Director of Afound.

“And by offering personal style inspiration, quality labels, and the sense that you’re getting a really good deal, Afound will offer a new form of off-price experience,” he added.

The Afound marketplace will be launched in a bricks-and-mortar store in Drottninggatan in Stockholm in parallel with the launch of the digital marketplace in Sweden.

The announcement came as H&M revealed its results for the full financial year to 30 November, 2017.

As sales continue to grow for the entire H&M Group with an increase of 4% over the year, the Swedish fashion brand is turning its focus to strengthening its digital arm.

Following decades of rapid expansion, the world’s second-biggest clothes group after Zara’s owner Inditex has struggled to respond to the growth of ecommerce. H&M brand’s reputation also suffered following the recent racism scandal involving a black child model wearing a hoodie that said ‘Coolest monkey in the jungle’.

In order to keep up with the fashion industry’s ever-changing pace and to increase its market share, H&M is branching out into new concepts, like Afound.

“We constantly work on new ideas and innovations that will drive us forward – and there are many in our pipeline for 2018 and the years to come,” said Karl-Johan Persson, CEO of the H&M Group in a statement.

H&M also revealed plans to add a net addition of about 220 stores in 2018, compared with 388 in 2017, and enter Uruguay and Ukraine for the first time.

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.