& Other Stories cements H&M’s fashion forward stance but widens its pricing architecture away from the value end of the market – attracting shoppers with higher disposable incomes.

& Other Stories cements H&M’s fashion forward stance but widens its pricing architecture away from the value end of the market – attracting shoppers with higher disposable incomes or those that want to trade up for added value.

The new fascia will widen H&M’s appeal to consumers in their 30s and 40s – better competing with Zara’s mix of fashion and strong tailoring. This will give H&M greater insurance against demographic shifts as well as changing patterns in spending power, particularly as younger consumers remain under significant pressure due to high youth unemployment and poor economic prospects.

H&M’s move to launch & Other Stories via physical stores and an e-commerce site simultaneously is logical and will enable the retailer to gauge demand for new stores. It shows how its online strategy has advanced – though there is still room for further enhancements. H&M has created significant buzz around the new brand, with social media content on Facebook, Twitter and Tumblr to generate excitement and give consumers a taste of the brand.

& Other Stories must have its own clearly defined brand personality and be sufficiently differentiated from its sister brand Cos – which has a stronger design aesthetic than other brands in H&M’s portfolio. However more of a focus on accessories such as shoes, bags and jewellery, and complementary items such as makeup and skincare, means & Other Stories can carve its own niche in the UK.

Despite formidable competition from Zara, Reiss and Whistles, & Other Stories has sufficient clout and brand awareness to make an impact. With a successful brand launch expected, H&M must take advantage quickly and roll out the concept with greater confidence than its cautious approach with Monki and Weekday.

Kate Ormrod is a retail analyst at Verdict Research