Integrating the online store and the recommendations for the brick and mortar store would expand H&M’s product lines and differentiate them from the other competitors occupying a similar space in fast fashion. Integrating micro merchandising and e-textiles would give H&M an advantage over the competitors since UNIQLO, Zara, and Cotton On are currently not exploring these areas of product line extension.
Integrating micro merchandising through local partnerships will address H&M’s issue of inadequately performing fashion forecasting as well as Zara, and allow for further product lines that would appeal to the local Australian market. Some of H&M’s most profitable lines have been through partnerships with companies such as Versace, Come De Garcons, and Lanvin. An article from Vogue mentions “from Karl Lagerfeld’s first collection to the internet-breaking Versace and Balmain collaborations, H&M’s designer tie-ins are gold dust” (Burney 2019) showing the profitability of H&M’s prior partnerships. Applying this idea on a smaller and regional scale with local brands such as HoMie and Mr Winston would be profitable and set H&M apart from the rest of the fast fashion companies. Other brands such as Diasy and Raela may be incorporated into this new campaign. H&M would also be taking advantage of the tendency for Australians to prefer Australian made products adding the equity associated with the green and gold kangaroo logo to their product offering’s value as well. The companies that partner with H&M will also have access to their large customer base building awareness in other cities that they are not currently operating in. Melbourne residents would be exposed to new and exciting Sydney brands that they have not heard of, and Sydney fans would be exposed to Melbourne fashion that they have not seen yet.
E-Textiles are growing in popularity along with wearable technology and are already commercially available and affordable. By incorporating e-textiles into H&M’s product lines, they have a chance to put e-textiles into the mainstream market while its emerging as a trend. Cute Circuits currently does collaborations with other companies including Converse. Creating a collaborative product line between H&M and Cute Circuits would provide a new and innovative offering to H&M customers. Selling lower end e-textiles such as light up shirts that respond to music and programmable LED lights in clothing would also be a profitable area to expand to and would also fit H&M’s positioning as an affordable fast fashion brand.
By integrating these two recommendations, H&M could expand their product line and create new innovative product offerings that would differentiate them from their fast fashion competitors while keeping their brand image consistent as this would be an expansion on H&M’s tendency to do cobranding with other companies.
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