As the state of the global economy continues to improve outside the embattled Eurozone, retailers are beginning to leave behind austerity plans and once more examine options for international growth. Swedish fashion retailer H&M has already announced plans to expand their growing empire, with the chain’s sights firmly set on the USA as its next target market.
Vanessa Paradis. Face of the H&M Conscious Collection
While 2012 saw the opening of 40 new H&M commercial properties in the United States, American chief executive Daniel Kulle does not believe that the brand has come close to achieving market infiltration across the Atlantic.
He says; “This is just the beginning. We have 269 stores in the US, but with more than 314 million people in the country, we haven’t exposed everyone to H&M yet.”
During a press conference last week, Mr Kulle revealed that 10 new locations across the country had already been chosen by the retailer in an attempt to make the brand more accessible for a large number of consumers. These include stores in the Roosevelt Collection in Chicago, City Place in West Palm Beach, Florida, and the Waikiki Business Plaza in Honolulu, Hawaii.
Yet H&M is not simply relying on new store openings to attract stateside consumers, as it will also be launching a number of new initiatives aimed at accessibility this year. As well as its much anticipated e-commerce launch, the brand will be investing in a catalogue delivery service which will bring a personal touch for those who live a significant distance from their nearest H&M branch.
Mr Kulle continues; “We see catalogues as a part of marketing and a way to inform and excite customers about H&M.
“They’ll see our different concepts for men, ladies, babies and teens.”
The retailer has also launched an ethical clothing range, the Conscious Collection, spearheaded by a marketing campaign featuring French model, singer and actress Vanessa Paradis.
Additionally, H&M will be revealing a home collection later in the year. However, the pieces available in this range will only be available from the chain’s flagship US stores in Boston, New Orleans and New York.
This ambitious expansion certainly seems to indicate an element of confidence in the US market, yet industry experts have cited concern that the Swedish brand is investing heavily in a market which has not yet fully stabilised after the global financial crash.
With much of the world, including the UK, hedging its bets by grimly holding on to austerity measures introduced in 2009, it remains to be seen whether H&M’s gamble will pay off spectacularly or send the retailer into a nosedive which will see it racing back across the Atlantic with its tail between its legs.
