H&M Holds Prices Steady in the US While Competitors Hike Them!
Have you noticed that while ZARA and Shein are hiking prices like there’s no tomorrow, H&M is keeping its prices steady? Yes, you read that right! The Swedish fashion giant H&M has decided not to chase inflation and tariffs but to play it smart and try to steal customers in the US market.
Tariffs and Prices – Chaos in the Clothing Market!
While competitors like ZARA have raised prices by a whopping 28% compared to last year, H&M has managed to actually lower its product prices by 3%! How? Thanks to smart supplier consolidation and supply chain optimization. While US retailers are complaining about higher tariff costs, H&M is balancing between increased costs and the desire to grab a bigger slice of the pie.
What Does This Mean for Shoppers?
Shoppers in the US can currently enjoy stable prices on H&M products, while competitors hike prices, making people wonder if they can afford new clothes. H&M is using this opportunity to increase its market share, as some competitors are already panic-raising prices, which could cost them customers.
How Is H&M Doing This?
H&M’s CEO, Daniel Erver, reveals that the company is reducing the number of suppliers and working with larger partners who have production facilities in multiple countries. Also, H&M is seeking suppliers closer to key markets, such as Turkey, Egypt, Jordan, and Morocco for the European market, and plans expansion in Brazil.
Shein and ZARA – What’s Going On?
Chinese brand Shein, known for direct sales from factories, also had to raise prices after the US ended the tariff exemption on small shipments. ZARA raised prices by 28% in June compared to last year, adding more pressure on consumers.
What’s Next?
The challenge for H&M in the coming months will be to understand consumer sentiment, which is getting more nervous due to market turbulence. While some competitors panic-raise prices, H&M tries to stay stable, but this carries the risk of reduced profit margins. Still, it might be the best move to capture a larger market share.
Conclusion
While the clothing world in the US is burning from inflation and tariffs, H&M is playing a cool game and keeping prices steady. Will this be a smart move or will it cost them dearly? One thing is sure – shoppers currently have a reason to smile. What do you think? Would you rather pay more for ZARA or stay loyal to H&M? Drop a comment, let the debate begin!
Source: Blic, Reuters, Edited