In Austria, Swedish fashion retailer H&M is looking back on its most successful year in recent history. In 2014 the company’s annual surplus was €18 million, an increase of 44% compared to 2013. In the next quarter H&M Austria expects another slight growth in revenues. The good result is surprising to many experts because the fashion environment is becoming more and more competitive. In particular, the low prize segment makes it difficult for established companies such as H&M to maintain their market positions. Furthermore, online shops are attracting a growing number of customers.
Lars Riegel, a retail expert at Arthur D. Little, points out that the cooperation between H&M and leading star designers is a good way to create a unique brand and differentiate from competitors. He believes that presence at big fashion shows, such as in Paris, is mandatory for H&M. He also advises that H&M expand its online business. Worldwide internationalization is another key factor for a successful future.