Sign In

Delhi News Daily

  • Home
  • Fashion
  • Business
  • World News
  • Technology
  • Sports
  • Politics
  • Lifestyle
  • Entertainment
Reading: H&M seeks to lure US shoppers as fast-fashion rivals hike prices due to tariffs – ET Retail – Delhi News Daily
Share

Delhi News Daily

Font ResizerAa
Search
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Delhi News Daily > Blog > Fashion > H&M seeks to lure US shoppers as fast-fashion rivals hike prices due to tariffs – ET Retail – Delhi News Daily
Fashion

H&M seeks to lure US shoppers as fast-fashion rivals hike prices due to tariffs – ET Retail – Delhi News Daily

delhinewsdaily
Last updated: June 27, 2025 4:09 am
delhinewsdaily
Share
SHARE


Contents
Join the community of 2M+ industry professionals.Subscribe to Newsletter to get latest insights & analysis in your inbox.All about ETRetail industry right on your smartphone!

H&M is trying to win shoppers from rivals in the United States by holding prices steady while Zara and Shein raise theirs, as U.S. tariffs disrupt the fast-fashion industry that relies on imports of low-cost clothes from China, Vietnam, and other Asian countries.

H&M CEO Daniel Erver said on Thursday constantly changing tariffs had created turbulence, with the world’s second-largest listed fashion retailer planning for multiple scenarios.

In an interview, he told Reuters that the challenge in the coming months is “to understand the consumer sentiment, which we see has dropped in the U.S. due to all the turbulence… with the fact that some will be forced to raise prices more, and what (that creates) as an opportunity”.

“Different competitors are acting in different ways, some more aggressively, some more cautiously,” he added.

H&M has around 500 stores across the U.S., its second-largest market after Germany in terms of sales, accounting for 13 per cent in 2024.

As U.S. tariffs add to costs for retailers, relative price positioning is front of mind for executives, and the timing of price increases is key, with companies watching the competition closely to see who will blink first.

For H&M, which is trying to improve its profitability, sticking to current prices for longer carries risks as rising costs eat into margins.

But it also provides an opportunity to take market share from rivals.

“Maybe they are going to raise prices in the U.S… but just to a lesser extent as compared to competitors,” Pareto Securities analyst Alexander Siljestrom said.

H&M can also mitigate the tariff impact by shifting production of U.S.-bound clothes from China, which faces the highest tariff rate, to Bangladesh and elsewhere, he said.

Across categories including dresses, jeans, and shirts, the average U.S. price at H&M’s bigger competitor Zara was up by 28 per cent this month from a year ago, according to data from price tracking firm EDITED, while prices at H&M in the U.S. were on average down 3 per cent year-on-year.

Zara prices were up across the board in June compared to January this year, EDITED found, while H&M has kept prices more or less stable, even though its chief financial officer Adam Karlsson said in March that price hikes were likely to offset tariffs.

Shein, which sends clothes direct to U.S. shoppers from factories in China, has also had to raise prices and suffered weaker customer growth since Trump ended the “de minimis” duty-free treatment of low-value parcels.

SOURCING FROM FEWER, CLOSER SUPPLIERS

As it aims to improve its supply chain and get new styles to stores faster, H&M has spent the last 18 months consolidating its supplier base, Erver said, aiming to order more from a smaller number of big suppliers who also operate factories in multiple countries.

“We look at each individual order to decide what’s the best sourcing market depending on the craftsmanship, the skills, the pricing situation, but also now more than ever the geopolitical situation with trade barriers,” he told Reuters.

“That has led us in certain cases to take the decision to move things to different markets.”

H&M also aims to be below full capacity with all of its suppliers, so it can easily increase production if needed when an item sells well, Erver said.

As part of its “nearshoring” strategy of sourcing products from suppliers closer to main consumer hubs, H&M is looking to increase its supplier base in markets like Turkey, Egypt, Jordan, and Morocco for Europe, Erver said.

H&M will also add suppliers in Brazil, where it is opening its first stores in the second half, he added.

  • Published On Jun 27, 2025 at 08:20 AM IST

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about ETRetail industry right on your smartphone!






Source link

Share This Article
Twitter Email Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Operation Midnight Hammer: Tehran confirms nuclear sites suffered ‘serious’ damage; mulls ending IAEA access – Times of India – Delhi News Daily
Next Article ‘Will attack more US bases if …’: Iran’s Ayatollah Khamenei issues threat; first public comments after US strike – Times of India – Delhi News Daily
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Conflict brings increased sexualized violence to DR Congo – Times of India – Delhi News Daily
  • EU strikes new trade deal with Ukraine covering farm imports | World News – Times of India – Delhi News Daily
  • Trump admin sues Los Angeles: Feds accuse mayor of blocking ICE, fueling riots; target ‘sanctuary city’ policies – Times of India – Delhi News Daily
  • OpenAI’s high-profile IITian employee quits, to join Meta: Who is Indian-origin researcher Trapit Bansal? | World News – Times of India – Delhi News Daily
  • Jaiswal Moved Out of Slips | Ryan ten Doeschate Explains Fielding Changes – Delhi News Daily

Recent Comments

No comments to show.

You Might Also Like

Fashion

My brand is respected in India because everyone panders to the rich; we do not: Sabyasachi – ET Retail – Delhi News Daily

SabyasachiJust back from the Met Gala, where he dressed Shah Rukh Khan; attending luxury conferences in London and New York;…

25 Min Read
Fashion

Indore: 2 textile cos acquire land in the region – ET Retail – Delhi News Daily

In a significant boost to the textile industry, Arvind Ltd acquired land in Budhi Barlai village in Indore district, with…

2 Min Read
Fashion

Zen Diamond looks to open 100 stores in India in 5 years – ET Retail – Delhi News Daily

Diamond jewellery brand Zen Diamond plans to open 100 stores across India by 2030, especially in quality malls, a senior…

3 Min Read
Fashion

Prada’s brand CEO Gianfranco D’Attis to quit – ET Retail – Delhi News Daily

Gianfranco D'Attis Prada's brand chief executive officerPrada's brand CEO Gianfranco D'Attis will leave the Italian luxury firm at the end…

2 Min Read

Delhi News Daily

© Delhi News Daily Network.

Incognito Web Technologies

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?