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Full disclosure: I have never visited an H&M store in my international travels, but have been to plenty here stateside, so this article looks at why H&M is falling out of favor with American fashionistas. To put it simply H&M’s online shopping clothes fashion supply far exceeds its demand. And while the company has been slow to migrate sales online and sees a fix in expanding its online presence, uninspired fashion isn’t going to sell any better online than it does in the stores. “Consumers have felt that H&M has been somewhat drab and not on trend as much as competitors,” says Michael Dart, co-author of Retail’s Seismic Shift and an AT Kearney partner. “With slower supply chain (unlike super-fast Zara), they have not responded as quickly to rapid shifts in taste and increasing fragmentation in the consumer market online shopping sites for electronics with many more small segments. As a result, they have had more markdowns, promotions and less inspiration for the consumer. It’s a formula for sagging results.” Shelley Kohan , assistant professor at the Fashion Institute of Technology, sees getting the product right as the key element that will sustain the company long term. “H&M needs a laser focus on product assortment and to ensure products in the market are meeting the needs of their customer in terms of content and availability.” And all that unsold product in the stores needs tending, which this recent shopper, Solange Strom , who also happens to be managing partner and co-founder at Infranext Capital and a former retail executive, tells me makes shopping there singularly unappealing. “I went shopping over the holidays with my 22-year-old son (a pure millennial) and despite being a keen online aficionado, he prefers to go to a physical store when he wants to buy clothes. We entered the H&M store and exited within seconds,” she shared. “My son told me there was no way he was shopping there as the store was an absolute mess, clothes everywhere left by clients and with no merchandising to talk about and even less customer service.” They ended up instead at Uniqlo where he made all of his purchases. “Clean store, nice merchandising (good lighting too) competent staff and simple, well-cut basics,” was what they found there.
For the original version including any supplementary images or video, visit https://www.forbes.com/sites/pamdanziger/2018/02/04/why-fast-fashion-hm-is-losing-favor-with-american-fashionistas-its-a-mess/
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