Experts Call For H&M To Improve Brand Quality Design

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< p > although the Swedish retailer H&M Hennes & Mauritz AB (HMb.ST) Hayne and Maurice harvest the best sales growth in November in three years, but then Reuters splashed cold water. Many analysts interviewed by Reuters said that a href= "//www.sjfzxm.com/ news/list.aspx. ClassID=101112107105" > //www.sjfzxm.com/ > should learn how to raise gross margin from this performance. < /p >
< p > H&M Hennes & Mauritz AB (HMb.ST) just released the results of November and fourth quarter of this month. In November, the same store sales increased by 10% over the same period last year, the biggest increase in 20 months, far exceeding the market expected 3-4%, and the total sales in November also increased by 21% compared with the same period last year (according to the local currency, including VAT value-added tax). As of the four quarter of November 30th, the total sales volume of the group was 42 billion 593 million Swedish kronor (about 6 billion 480 million US dollars), up 13% from last year's 37 billion 930 million Krona (by local currency, including VAT value-added tax), excluding VAT value-added tax, the total sales of 36 billion 480 million Swedish kronor (5 billion 600 million dollars) was higher than that of the Swedish market, and the same store sales grew by an increase of 13% over the same period last year. < /p >
< p > for the good sales in the November and the four quarter, H&M attributed the cold weather and the fourth quarter to more than a week in the performance report. As for the Isabel Marant pour H&M cooperation series launched in November, H&M still kept taboo. It did not disclose any data. According to the Santander Santander bank analyst Rebecca McClellan, the average sales of the cooperation series were 40 million euros, and the designer had to pay 10 million euros Commission for the designer. Therefore, compared with the annual sales of 18 billion dollars, the group did not contribute much to sales growth. Bertrand Chovet, director of Interbrand, Paris, a consultancy, said that despite this, H&M should learn a lot from the cooperative series: how to raise pricing and gross margins. < /p >
< p > as the second fastest fashion brand in the world, H&M has an average selling price of less than Zara besides income, which is also lower than Zara, which makes H&M's gross profit rate involved. Since 2010, the gross profit margin of H&M has decreased from 63% to 59%. On the contrary, the gross profit margin of Zara parent company Inditex SA (ITX.MC) has increased from 57% to 60% during the same period, and the comparison shows that H&M is insufficient. < /p >
Since its first collaboration with Karl Lagerfeld in 2004, in the past 10 years, it has launched 14 cooperation series with designers, celebrities, a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107107", luxury brand "/a" and fashion editors. The sales experience has also been different. The first collaboration series Karl Lagerfeld /a has been in short supply and received high attention, and has become one of the landmark events in fashion and apparel retailing. However, some other subsequent series are not satisfactory. Last year, it was reported that the production was the largest, but there was a phenomenon of unsalable sales. According to the latest reports from the US media, the sales situation was good, which led to the downtime of the US e-commerce website reservation system. < p > H&M The cooperation series does not always perform well for H&M. For example, in November 2011 and November 2012, the Versace for H&M and Maison Martin Margiela for H&M series were also launched in the two months, but sales fell 1% in the same month, while the sales of Lanvin for in November increased by 8% in 2010. Although the cooperation series itself contributes little to the sales growth of the group, the indirect increase of people's traffic can not be underestimated. This is the place where the H&M cooperation series takes the most bribes. On the contrary, the role of brand publicity and image has been declining year by year in recent years. < /p >
< p > because the cooperation series is usually 2-3 times higher than the price of the H&M series or even more. If the full price is sold, the high price can easily lead to a high gross profit margin, thereby preventing the decline of the gross margin of the H&M and will not widen the gap with the Inditex SA (ITX.MC). But after more than 10 years, H&M Hennes & Mauritz AB (HMb.ST) has not been successful, and the new brand of the new mid end brand "Mauritz" has just started in March. At present, there are only 10 stores that are not available, although the brand stores are expanding rapidly this year, they still lag far behind the flagship brands.
< p > according to a survey by Societe Generale, Societe Generale, the price of H&M apparel products has improved in recent years. The total price of 7 pieces of spring and summer H&M has reached 395 pounds, while in 2011 it was only 195 pounds, and the price rose by more than 1 times. Anne Critchlow, an analyst at Societe Generale Bank, said H&M raised prices for some products that were originally priced at high prices, which would help to balance cheap products to guarantee gross margins. In this regard, advertising agency Johannes Leonardo creative director Ferdinando Verderi said, H&M also need to improve the quality and user experience to balance the price increase. The quality of H&M and the bad experience in the shop have been complaining to consumers. Instead, Zara began to increase investment in its shops to enhance its image. It renovated dozens of major brands of "a //www.sjfzxm.com/news/list.aspx" ClassID=101112107108 "flagship store" /a, which made the store more like a high-end brand and a luxury store. "Zara" < /p >
< p > on the other hand, Primark, a cheap fashion apparel retailer under the British food processing and apparel retail group, will also have an impact on the basic products of H&M in other European markets and the upcoming expansion of the US market. There are still many things that H&M should do when it comes to being caught in the dark. The sales increase in November is fortunate, but it can not be deceived by the short favorable situation. < /p >