Fashion retailer downplays impact of internet behemoth
H&M’s New Zealand boss says the 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 and it keeps us on our toes.’’
H&M will open a third New Zealand store in Wellington on October 26. As yet it has no online store in this country.
‘‘We’ve always wanted to establish our stores as brick-andmortar in major cities first so customers can learn about our brand, and then online will follow,’’ Andersson said.
RCG retail expert Paul Keane agreed that talk of Amazon and online shopping threatening New Zealand retail 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.
‘‘I know people in the younger age group are shopping on the web, but not for everything.’’
H&M opened its Christchurch store at The Crossroads last month to about 800 shoppers lining up around the block, but Keane said keeping customers coming back after the hype faded would be a constant challenge.
‘‘They have to make sure the merchandise is what the local people want,’’ he said.
Andersson said that was not a problem for H&M because it received new stock almost daily.
‘‘The idea is having constant flow, instead of having spring and summer seasons with clothes in the store for the next four months.’’
He also said Kiwi shoppers were no different from the rest of the world.
‘‘Fashion and quality at the best price works around the globe, it works in 70 countries. Stockholm, New York, Sydney or Wellington,’’ he said.
‘‘Fashion is the same everywhere around the globe more or less.’’
But Keane said not knowing the Kiwi shopper was one reason why international retailer 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,’’ he said.
Keane said Kiwi shoppers are bargain hunters, so price was always a factor.
‘‘People want to buy international brands cheaper than what they’ve traditionally had them in this country, and I think that’s where the problem is.
‘‘The price points are probably a bit higher than what people anticipate.’’
But that was no problem for Andersson.
‘‘We have been around for 70 years, we are in over 70 markets, we know where to buy, what and how to get products out very quickly.
‘‘We have no middle men so can keep prices down.’’