H&M teams up with Versace
Jeremy Hobson: The cheap chic clothing company H & M said today its profits fell last quarter — but not by much. And next month, the company will become the latest mid-range retailer to team up with a big name in fashion. H&M will be launching a collection
designed by Versace.
And as Sally Herships reports, the company would be well-advised to study the ups and downs of Target’s recent collaboration with Missoni.
Consumers want to buy their aspirations, which they tried to do when Target offered a discount line of Missoni products. Shoppers were angry about hard-to-get goods, but when high fashion meets mass market, the real risk is to the luxury brand being available at a discount for too long.
Paul Swinand is a retail analyst at Morningstar.
Paul Swinand: Once you’ve done that deal with pennies, it would be tough to go back upscale as a high-end brand in Nordstrom and Saks.
Versace and H&M’s solution? Fast fashion — move the line in and move it out.
In New York, I’m Sally Herships for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
