Image source: http://www.thesun.co.uk/sol/homepage/news/3943479/Donatella-Versace-launches-new-collection-at-HM.html
As one of world leading multinational retail clothing company, H&M has successfully maintained its sales and performance through out the years of operation.H&M is well known for its fast updated design for men, woman, as well as kids. What makes H&M highly demanded by the society is their relative low price, modernize style which satisfied the needs and wants of the targeted market.
What differs H&M from its competitor such as ZARA and Gap is they have seasonal guest designer collaborations. Each year, H&M managed to collaborate with high-end designers such as Karl Lagerfeld, Versace,Lanvin, Alexander Wang, and many more.In this partnership, the designers will release their design which manufactured by H&M themselves. The products ranging from hand bags, to coat. The price will be higher than usual H&M product, but a lot more cheaper than the original price of the brand itself. However, through out the years, collaborations product has been highly demanded by the market, often customers used to line up outside the stores on the day that product is released.
As a H&M consumer, I think the collaboration not only add value to H&M but also helps customer to purchase high end branded product with lower price And for H&M, a good number of customers benefit from buying high-end design at a reasonable price, also, creating this kind of excitement to customers greatly boosts the sales and profit for H&M. Highly-brand conscious customer will tend to expect more and more designer product and therefore helps H&M to keep their sales high. Since the number of each item in this collection is limited that makes this product line also be valuable, precious and collectable.