H&M isn’t sweating online competition
H&M’s New Zealand boss says the Swedish fast-fashion retailer is not threatened by Amazon or online shopping.
H&M country manager Hans Andersson, who has worked for H&M since 1988, welcomed Amazon into the market.
‘‘We think it’s good that Amazon comes because it’s good competition. It will drive quality and the offering, and drive the prices down. It means we have to try harder,’’ he said.
H&M will open its first Wellington store at Queensgate Shopping Centre in Lower Hutt on October 26. Although it will be New Zealand’s third physical store, H&M still has no online store here.
‘‘We’ve always wanted to establish our stores as brick-and-mortar in major cities first so customers can learn about our brand,’’ Andersson said.
RCG retail expert Paul Keane agreed that fears of Amazon and online shopping were overblown.
‘‘I don’t believe the internet has had such a big impact as people think or that the web is dominating. People are leaning on that when a store closes,’’ he said.
H&M opened its Christchurch store last month to about 800 shoppers lining up around the block, but Keane said the key is keeping people coming through the door when the hype dies down.
‘‘They have to make sure the merchandise is what the local people want,’’ he said.
Andersson said Kiwi shoppers were no different from the rest of the world. ‘‘Stockholm, New York, Sydney or Wellington – fashion is the same everywhere around the globe, more or less.’’
But Keane said not knowing the Kiwi shopper was one reason why Topshop went into voluntary receivership this month.
‘‘I think it’s a mixture of a whole lot of issues built around the fact people who come here really don’t understand our market.’’
Keane said Kiwi shoppers were bargain hunters, so price was always a factor. ‘‘The price points [for international brands] are probably a bit higher than what people anticipate.’’
But that was no problem for Andersson: ‘‘We have been around for 70 years … We know where to buy, what and how to get products out very quickly. We have no middlemen so can keep prices down.’’