Fast-fashion giant H&M recently unveiled the autumn/winter 2024 collection from its atelier spinoff H&M Studio. The limited-edition fashion drop signals the brand is “returning to its roots and reconnecting with its community through a global ‘re-ignition’,” H&M’s head of design Eliana Masgalo told Vogue Scandinavia. But what does that really mean for the fast-fashion brand’s broader business? “We’re going back to our core,” Masgalo stated. “We have such a
Fast-fashion giant H&M recently unveiled the autumn/winter 2024 collection from its atelier spinoff H&M Studio. The limited-edition fashion drop signals the brand is “returning to its roots and reconnecting with its community through a global ‘re-ignition’,” H&M’s head of design Eliana Masgalo told Vogue Scandinavia.But what does that really mean for the fast-fashion brand’s broader business?“We’re going back to our core,” Masgalo stated. “We have such a strong heritage, and we’ve been on the market for many years. We’re not rebranding, but re-igniting, re-energising, and re-boosting what we’ve always stood for: fashion.”An increasingly competitive fast-fashion sphereH&M is one of the world’s largest apparel brands, with over 4000 stores spread across the globe, but thanks to growing competition from fast fashion players, it has been struggling to hold onto its once-primary position. “H&M has been through a difficult time. The brand has become stale and feels tired, as such it has been hit fairly hard by the slowdown in apparel and much more intense competition in the fast fashion space,” Neil Saunders, managing director and retail analyst at GlobalData, observed. H&M is caught in an awkward space where it is not able to produce clothing at rates as quickly or as affordably as players like Shein and Temu, nor does it entirely have the elevated image of competitors like Zara, which can command higher prices. Between 2019 and 2023, H&M’s sales were virtually flat, totaling about $23 billion last year. To provide a point of comparison, in that same period, Inditex, which owns Zara, saw sales expand by 27 per cent, to roughly $40 billion last year.To combat this, H&M is attempting to embrace a middle-of-the-market value proposition and “reignite” its image via a full 360-degree rebranding mission.This includes a sleek, image-led overhaul of the company’s site, renovations of 250 of the brand’s some-4000 stores in the coming calendar year, and increased local manufacturing capabilities to improve the company’s ability to chase trends.The apparel retailer will also be implementing radio frequency identification (RFID), in an increasing number of stores to allow for better inventory visibility and more efficient product replenishment.In an interview with the Business of Fashion, H&M’s CEO Daniel Ervér, commented, “As a customer, you will feel that H&M has a different confidence, a different level of inspiration and a different level of energy than you might have felt in the past.”How H&M is trying to channel “Brat” energyTo celebrate the launch of H&M Studio’s latest collection, the fast-fashion powerhouse enlisted the help of British musician Charli XCX to channel a bit of her Brat energy. The “Boom Clap” singer is part of H&M Studio’s editorial campaign, which also features model Lila Moss wearing pieces from the collection. Charli XCX kicked off a three-month-long series of celebrations with H&M, which will include pop-up shops and live music performances, with a performance at London Fashion Week. While the performance, which was open to the public, was a runaway hit with the crowd, some fans and fashion critics have disapproved of the partnership, noting that it’s not very “brat” of Charli XCX to endorse the fast-fashion giant. One open critic is “your favourite artist’s favourite artist” Chapell Roan, who seems to reflect the more sustainably-minded values of Gen Z. The “Pink Pony Club” singer explained why she is saying “no” to most brand deals: “I’m like, ‘Does it fit in this world?’ No, H&M does not fit in this world.”It will take more than a cool concert and a spiffy marketing campaign to convince younger consumers to go to H&M for their next fashion fix. How can H&M stand out amongst its competitors?Retail experts like Melissa Minkow, a director of retail strategy at CI&T, are wary of H&M’s strategy of establishing a “middle ground” in the fast-fashion market. Minkow noted, “I feel as though H&M’s positioning is already pretty solidified as ‘upscale fast fashion,’ or middle market.”Minkow also pointed out that “mid-range apparel struggled for a long time as income bifurcation expanded the gap between lower and higher income consumers so drastically”.The retail strategist observed that H&M’s competition in this space includes mid-range brands like J Crew, Gap, and Abercrombie & Fitch, which have also been diving into their comeback campaigns. She also pointed out that consumers who care about sustainability are unlikely to perceive H&M as anything but fast fashion.“The price point and a spokesperson [like Charli XCX] wouldn’t be what changes perception, Minkow advised. “Perception will change if they overhaul their sustainability efforts to a standard that is respected by the consumer. There would have to be much more transparency surrounding their sourcing and manufacturing approaches.”Saunders told Inside Retail that H&M’s collaboration with Charli XCX is part of a bigger effort to enhance its “cultural relevance” and “put it back on the consumer radar”.“In a way, it is H&M going back to its roots by doing something bold and imaginative,” he said. “The fact that the new line has been launched with a number of high-profile events underscores the importance H&M attaches to it.”However, Saunders warned that “one collaboration alone will not be enough”. “H&M has to reimagine the in-store experience and increase the quality and frequency of new fashion drops on an ongoing basis. This is one step in a much longer journey,” he said.