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H&M IN LA


6MT

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Quote:

SO MORE WAITING.......

I WONDER HOW THEY DO IT, HIRING DESIGNER LIKE KARL AND STELLA, AND YET SELL IT FOR THE PRICE IT IS......

--- Original message by 6MT on Oct 27, 2005 11:02 AM

H&M thrive by doing catwalk type stuff but much lower quality. It actually works OK because it'll last a few months and that's about as long as some of the more fashionable stuff would be worn for anyway.

They do some OK stuff but I'm not quite sure how the prices would work since cheap in England is pretty pricey by US standards, for example a Gap tee that costs about $15 will be about £15-16 in the UK (just under $30).

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having been to H&M NYC, i think it's a cool store with a better men's section than women's

the women's section kinda exists already in LA as Forever 21...not that it's the same stuff but it's almost the exact same stuff...esp if you compare it with the Beverly Center Forever 21

the men's section is far better than women's....the suits are actually nice for $249...super 100 wool, slim fitting...you could do a lot worse for the price. their basics are cheap and reasonably good quality. their denim line even had a dark one rinse super slim low rise for $39. there's def a reason it's packed with people and stuff is sold so quick. it's cheaply priced, prolly wont last more than a couple years, but it's a lotta bang for the buck

i'm shocked there isnt one in LA yet....as far as i know there isnt plans for one yet, just SF

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Quote:
Quote:

SO MORE WAITING.......

I WONDER HOW THEY DO IT, HIRING DESIGNER LIKE KARL AND STELLA, AND YET SELL IT FOR THE PRICE IT IS......

--- Original message by 6MT on Oct 27, 2005 11:02 AM

H&M thrive by doing catwalk type stuff but much lower quality. It actually works OK because it'll last a few months and that's about as long as some of the more fashionable stuff would be worn for anyway.

They do some OK stuff but I'm not quite sure how the prices would work since cheap in England is pretty pricey by US standards, for example a Gap tee that costs about $15 will be about £15-16 in the UK (just under $30).

--- Original message by generic_guy on Oct 27, 2005 11:09 AM

thats not what i meant,

what i'm trying to say is how do they manufacture all these clothes and sell it for the price it is, between the material they use and the design staff they keep, just dont seem balance as far as the whole operation goes.

but i guss u have point there, since i never actually saw any piece clothing from them.

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I'm guessing, and I am probably right, that H&M's business model relies on volume, not price. That means, they will be selling lots and lots of clothes at a low profit margin to make a profit. Production costs is definitely low for them, as their manufacturers supply to their stores worldwide, so there's economy of scale, which means, the more items you make the lower the cost is... by a combination of both, they make, well, a lot of money.

As for hiring Stella and Karl Lagerfeld, H&M pays them a one off design fee and it is probably not too much in relation to the hype and sales volume that they are able to generate from this extra attention. don't forget, high fashion is only high fasion because of the cut and and quality. H&M, in Stella's and Karl's cases, has the design and cut but not the quality. However, the publicity they generate will account for lots of profits and so that's why H&M can sustain and thrive.

I hope this makes sense

This is all random.......

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Quote:

I'm guessing, and I am probably right, that H&M's business model relies on volume, not price. That means, they will be selling lots and lots of clothes at a low profit margin to make a profit. Production costs is definitely low for them, as their manufacturers supply to their stores worldwide, so there's economy of scale, which means, the more items you make the lower the cost is... by a combination of both, they make, well, a lot of money.

As for hiring Stella and Karl Lagerfeld, H&M pays them a one off design fee and it is probably not too much in relation to the hype and sales volume that they are able to generate from this extra attention. don't forget, high fashion is only high fasion because of the cut and and quality. H&M, in Stella's and Karl's cases, has the design and cut but not the quality. However, the publicity they generate will account for lots of profits and so that's why H&M can sustain and thrive.

I hope this makes sense

--- Original message by Caramel on Oct 27, 2005 03:05 PM

Good post...accounting class all over again heh.
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