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    H&M Revenue Increased By 15% In The First Three Quarters Of 2014.

    2014/10/8 10:21:00 46

    H&MCheap LabelsRevenue

    Here world

    Clothing and shoes

    The Xiaobian of the network tells you that H&M is getting rid of cheap labels, and the income in the first three quarters increased by 15%.

    At present, the fast fashion brand H&M's market performance is very good. Recently released a report shows that in the first three quarters of 2014, H&M revenue increased by 15%, and net profit rose 19%.

    Sales growth is related to its electricity business in Italy, Spain and other markets, and its H&M website recently launched in China has won a good start.

      

     

    For all that,

    H&M

    Gross profit margins have declined in the past few quarters, which may be worrying.

    Not long ago, H&M joined the 7 fast fashion brands such as ZARA and C&A in formal negotiations with the government of Kampuchea, hoping to increase the wages of local workers.

    This will further affect the gross margin level of H&M, but the fast fashion Alliance said that the increase in the wages of workers "will be reflected in the FOB price of the purchased products", which means that H&M may raise the price of its products to maintain its profitability.

    This is also in line with what the company is currently pursuing: get rid of cheap labels and make yourself look a little more noble.

    In July 17th this year, H&M's largest flagship store opened in Fifth Avenue, New York.

    H&M first worked with artists to launch the Jeff Koons's "Balloon Dog" limited satchel at a price tag of $49.5.

    Koons is currently one of the most expensive artists alive.

    H&M is following the example of high-end brands and famous artists, like the cooperation between Marc Jacobs and Murakami Takashi, LV and Richard Prince.

    Since 2004, H&M has launched an annual series of designers to attract more high-end customers and expand its influence in the luxury sector.

    Look at this brilliant designer list: Karl Lagerfled, Roberto Cavalli, Stella McCartney, Versace, Jimmy Choo, etc. this year is the creative director of Wang Daren and Chinese designer (Alexander Wang).

    The price of the H&M Designer Series is often much higher than that of the same season. For example, the leather pants of the Isabel Marant Series in 2013 are priced at 179 pounds, and the tassel boots are 150 pounds.

    In addition, H&M group launched the high-end brand COS after 6 years of expansion, currently opened 64 stores.

    The brand set up in 1947 will face more challenges today.

    "Cheap and fast fashion competition is becoming more and more intense. For example, the market share of the first Zara, Zara meets the needs of consumers' fashion better; in addition, Topshop, UNIQLO and so on; COS, H&M can try to get involved in high priced fashion."

    Sydbank analyst S Ren L L ntoft Hansen said.

    In order to attract more

    customer

    H&M is also actively selling on the Internet.

    In October of this year, H&M will visit Tmall, which is under Alibaba.

    Zara decided to work with Tmall to launch the autumn and winter 2014 series on Tmall.

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