H & M Hennes & Mauritz: Collaboration with designers
Report description
H&M, a Swedish apparel retail company, began its first designer collaboration in 2004. Since that time the company has gone on to collaborate with a number of designers and celebrities on a yearly basis. This case study will examine why these designer collaborations were initiated, how successful they have been, and what the future might hold for H&M and its collaborations.
Scope of this research
MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions. Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends. Research and analysis highlights
In 2004, H&M began designer collaborations, entering into a partnership with Karl Lagerfeld. Since this time, the company has gone on to collaborate with numerous designers to create collections that go on sale in a limited number of stores and with a limited number of products.
In financial terms, the success of specific collaborations has varied considerably. The first collaboration with Karl Lagerfeld was hugely successful. Further collaborations were also successful, with notable exceptions including Marimekko and Jimmy Choo.
The success of designer collaborations has been driven by a number of factors including the reputation of the designer, the price of the collections, and availability. There is no doubt that H&M’s designer collaborations have been beneficial to the retailer; however, the long-term advantage to designers is questionable.
Key reasons to purchase this research
Which designers have H&M collaborated with and why were these collaborations initiated? How successful have the collaborations been? What were the drivers of successful collaborations? How have collaborations impacted H&M and designer brands? Are H&M's collaborations with designers sustainable?
Table of contents
Catalyst
Summary
Analysis
H&M was established in 1947 as a single store
The company has grown into a large multinational retailer
H&M introduced designer collaborations in 2004
H&M and the designers each have their own reasons for collaborating
There has been increased demand for luxury
Designer collaborations are a means to financial growth for H&M
Designers have a variety of incentives for collaborating with H&M
The success of the collaborations between H&M and designers has been varied
The first collaboration with Karl Lagerfeld was hugely successful
The collaborations that followed did not replicate the success of the Lagerfeld collection
H&M used collaborations with Comme des Garçons and Matthew Williamson to aid expansion in smaller markets
Successive collaborations have had mixed results
The success of individual designer collaborations was driven by a number of factors
The reputation of the designer is important
The pricing of collections has proved to be significant
The limited availability of collections has contributed to their success
There is potential for a luxury brand image to be harmed by collaboration with a high street retailer
Collaborating with a high street store may damage a brand's exclusivity
Conclusions
It remains to be seen whether H&M’s success with designer collaborations can be maintained
Appendix
Sources
Further Reading
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Disclaimer
LIST OF TABLES
Table 1: Month and year of H&M designer collaborations
TABLE OF FIGURES
Figure 1: H&M’s rank in Deloitte’s Global Powers of Retailing
Figure 2: Billboard advertising for the Karl Lagerfeld for H&M collaboration
Figure 3: Percentage change in H&M like-for-like sales compared to corresponding period in the previous year
Figure 4: Percentage change in H&M like-for-like sales compared to corresponding period in the previous year
Figure 5: Percentage change in H&M like-for-like sales compared to corresponding period in the previous year
Figure 6: Percentage change in H&M like-for-like sales compared to corresponding period in the previous year
Related research categories
By company: H&M Hennes & Mauritz AB
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