(Updated) Is H&M High Fashion Street?

Hemmes & Mauritz AB’s sales decline in the highly competitive High Fashion Street Market.

H&M isn’t new to fashion but there are a few brands that may cause a few more looks. H&M on the other hand has just opened 327 new stores to increase sales. Zara, Gap, and Uniqlo all have seen increase in the last quarter.

H&M faces a market where fashion is on the supply chain.

High Fashion Street: A Cost Analysis

While H&M is still a cost leader, Forever 21 is developing into a mega brand. Zara’s pricing upholds more than a 60 percent increase on H&M and most High Fashion Street consumers don’t mind footing the bill.

A HIGH FASHION STREET BRAND

One of H&M’s biggest assets has been celebrity collaborations. Beyonce for H&M. Enough Said. Generally stars are the tell tell signs of a High Fashion Brand. H&M still has some tough decisions to make. What are the experts saying?

“Either it must cut prices in response to the growth of lower-priced competitors and put further pressure on its margins. Or it should stop trying to compete at the bottom end of the market and start targeting customers who are prepared to pay more, through products such as its recently launched Conscious Collection of clothes mad from organic cotton.”

-Bernstein analyst Jamie Merriman

Related Post: Beyonce for H&M Summer Campaign 2013