Dive Brief:
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H&M is developing a new brand that will differ from any of its previous efforts, including its flagship fast-fashion brand, its more expensive COS brand, its & Other Stories accessories and beauty brand, or its other efforts, Bloomberg reports.
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For its part, H&M says it’s always working up new concepts to attract new and different customers, and then expands on them.
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The company told Bloomberg that & Other Stories and COS are getting special attention this year, and that sister companies Monki, a younger and more eclectic brand, and Weekday, a “Scandanavian” styled brand, are on its radar.
Dive Insight:
J. Crew has received a lot of attention for its spin-off brand Madewell, which has done much better than its flagship brand. H&M, meanwhile, makes such a thing look easy, seemingly developing and spinning off Madewell-esque sister brands all the time. The retailer has the added advantage of its fast production cycle, providing customers with prices and in-the-moment styles that Madewell can't match.
Spin-off brands give H&M a way to reach different customers, without cannibalizing its flagship brand, or its other spinoffs. And the retailer's constant effort to find and try new things will likely especially pay off, as the economy improves and consumers relax their purse strings a bit more.
