H&M opens its e-commerce site to third-party clothing brands – RetailWire
March 22, 2022
H&M has opened its e-commerce sites in Germany and Sweden to third-party brands on a trial basis.
The retailer is testing to see if a market model will resonate with consumers in the two European countries before expanding the test further.
Third Party Goods carried on the Sites include items from H&M’s sister brands, including & Other Stories, Arket, Monki and Weekday. H&M is also involving unrelated brands like Crocs, Fila, Lee and Wrangler in the test, conducted on a section of the site titled “H&M with friends.” H&M currently has 13 women’s brands and 15 men’s brands on the German and Swedish sites.
A spokesperson for H&M said fashion network, which broke the news for the first time, that its choice of the two launch markets was linked to each country’s “long tradition of catalog shopping”. The retailer has had its e-shop in Sweden since 1998 and in Germany for 15 years.
The pilot of an H&M Marketplace may be new to the retailer, but not to its parent company. Launch of the H&M group Found in 2018. The site, which operates in Austria, Germany and the Netherlands, offers discounts on H&M Group brands and third-party products in the beauty, fashion, interior and sports categories.
H&M offers online shopping in 54 countries and almost a third of the company’s total sales are made through its sites. The increased focus on digital does not appear to have had a negative impact on the company’s bottom line. The company reported a gross margin of 52.8% for last year, compared to 50.0 in 2020.
The fast fashion market test puts H&M in the company of other major retailers (Amazon, Target, Walmart) who are doing the same. This list will soon include Macy’swhich plans to launch its own curated marketplace in the second half of 2022.
Macy’s announced its intentions in November. CEO Jeff Gennette said on the company’s third-quarter earnings call that Macy’s Marketplace will offer customers “an even broader assortment of exciting products to deliver on our promise of style and preservation.”
“Our digital business is on track to generate $10 billion in sales by 2023 and this figure does not include the incremental revenue we hope this new marketplace platform will generate,” he said. declared.
DISCUSSION QUESTIONS: Would an H&M Marketplace be successful if launched in the US? Do you think H&M will stick to fashion brands in its market or expand to other product categories as well?
“It’s much more complicated to develop and manage your platform, your brand and your ecosystem than doing traditional retail. »