H&M DESIGNER COLLABORATIONS 1
INTRODUCTION 1
Table of Contents 2
Table of figures 2
H&M DESIGNER COLLABORATIONS SUMMARY 3
The images below summarize each of the designer collaborations 3
H&M's financial performance varied for each collaboration 6
DRIVERS BEHIND THE DECISION TO COLLABORATE 8
The demand for luxury has increased 8
The demand for masstige is driven by the increasing velocity of modern society 8
H&M's designer partners had a range of incentives for working with the retailer 8
H&M DESIGNER COLLABORATIONS IN FOCUS 10
The first H&M designer collaboration with Karl Lagerfeld had the greatest impact 10
The first H&M collaboration was high profile and offered consumers a semblance of exclusivity 10
The collaboration provided a means for H&M to generate financial growth 10
The collaboration enabled male and female consumers to access affordable luxury 10
The collaboration received a high profile advertising campaign 10
The Lagerfeld collaboration achieved outstanding financial success for H&M 13
The Stella McCartney collaboration failed to replicate the exclusivity of Lagerfeld 14
The Stella McCartney collaboration lacked the profile and exclusivity of the Lagerfeld collection 14
The collaboration sought to recreate the publicity and financial success achieved by Lagerfeld for H&M 14
The collaboration provided the opportunity to purchase replica McCartney designs at value 14
The collaboration was the first to make use of a launch party to promote a collaboration collection 14
The less established reputation of McCartney was reflected in the inferior packaging 16
The collection increased sales on the previous month but failed to match Lagerfeld's success 16
The Viktor & Rolf collaboration matched the success of the Stella McCartney collection 18
The Viktor & Rolf collection provided consumers with a sense of exclusivity 18
The third designer collaboration sought to maintain the higher earnings of the previous two years 18
The Viktor & Rolf collection for H&M provided customers with poor value 18
The launch party for the Viktor & Rolf collections was the most lavish to date 19
The collaboration was accompanied by a heavily themed store environment 20
The collaboration enabled H&M to maintain the sales figures generated by the McCartney collection 21
The Roberto Cavalli collection marked a return to high profile and exclusive collaborations 23
The Cavalli collaboration epitomised masstige 23
The collaboration marked H&M's attempt to repeat the success of the Lagerfeld collaboration 23
The Roberto Cavalli collaboration for H&M was the highest priced to date 23
Like Lagerfeld, the in store launch entailed promotions 23
Visual merchandising and packaging were used to create a luxurious shopping experience 24
The collaboration was one of the most successful financially for H&M 26
The Marimekko collection was the least successful of all H&M collaborations 27
The collaboration marked the start of a shorter designer collaboration cycle 27
Marimekko was given an opportunity to increase brand awareness amongst young consumers 27
The size of the Marimekko collection undermined the consumer's experience of exclusivity 27
The Marimekko collaboration was accompanied by a low key launch 28
Up market packaging was used to justify higher prices for a collection designed by H&M 28
The Marimekko collection was highly unsuccessful, resulting in a decline on the previous month's sales. 29
The Comme des Garçons collaboration was the first to be used to enter a new market 31
The collaboration provided consumers with a sense of exclusivity 31
The collaboration provided H&M the an opportunity to improve its profile in Japan 31
The price differential between Comme des Garçons' H&M range and its standard designer range was low 31
The collaboration was launched first in Tokyo to celebrate the opening of a new store 32
In store visual merchandising was used to perpetuate a sense of exclusivity and luxury 32
The collaboration resulted in an increase in sales on the previous month 34
The Matthew Williamson collaboration was the most successful collection after Lagerfeld 35
The Williamson collaboration was the first to consist of two collections 35
The collaboration provided H&M with a high profile entry into the Chinese market 35
The High Fashion collaboration provided female consumers with Williamson's designs at excellent value 35
Launch parties were used to mark both phases of the collaboration 35
Up market packaging was used to create a luxurious shopping experience 37
The success of the Williamson collaboration varied between the first and second phase 38
The Jimmy Choo collaboration was a disappointment for H&M 39
The Jimmy Choo collaboration was high profile and provided consumers with exclusivity 39
The collaboration marked H&M's attempt to recreate the success of previous high profile collaborations 39
The high price of the Jimmy Choo range did not sit well with the recessionary climate of the collaboration 39
The collaboration was accompanied by a high profile advertising campaign and launch party 39
Visual merchandising & packaging were used to justify the collaborations higher prices 41
The collaboration failed to meet expectations 41
The Sonia Rykiel collection proved that designer collaborations have longevity 43
The Rykiel lingerie collection marked the first collaboration to be sold outside of H&M stores 43
The Sonia Rykiel collections significantly increased the intensity of the designer collaboration cycle 43
The Rykiel collaboration was the first to focus exclusively on lingerie 43
A high profile launch party was used to mark the first phase of the collaboration's release 44
Luxury packaging was used to create an up market shopping experience 45
The Rykiel collaboration overcame the recessionary attitudes of consumers to increase sales dramatically 46
A number of key drivers are responsible for the success of H&M's designer collaborations 47
Key factors driving the success of the H&M designer collaborations 50
STRATEGIC ACTION POINTS 51
For Retailers 51
For Designers 51
APPENDIX 52
Definitions 52
Methodology 52
Further reading 52
Ask the analyst 52
Verdict consulting 52
Disclaimer 52