Brands Exploring New Homes: Smart or Selling Out?
H&M made an announcement several months ago: Jimmy Choo shoes and handbags would be making their way to H&M stores across the globe.
Let’s start with H&M – H&M isn’t a new retailer. The first store opened in Norway in the late 60’s. They began expanding throughout counties in Europe and then into other counties worldwide. I remember when I went to Europe in early 2000 thinking, “What an awesome store.” Looking back, I think much of the appeal had to due with the fact that there weren’t any locations in the US at the time. They are now everywhere – over 169 stores across the US.
The store showcases trendy styles, along with classic pieces that can be worn to the office – all at very reasonable prices. I have never thought of H&M as a “high-end” store” – quite the opposite actually. My impression seems to be confirmed by the company’s mission statement, “Fashion and quality at the best price.”
Now onto Jimmy Choo: Jimmy Choo is best known for his exquisite hand-made women’s shoe line worn by Hollywood’s elite, fashionistas worldwide spotlighted throughout the Sex and the City series. Of course, these shoes come with a price tag. You’d be hard pressed to find a pair of Choos for under $350. The brand is definitely associated with luxury.
So, H&M will soon be carrying a Jimmy Choo line, exclusively created for the retailer.
“We are privileged to be among the fashion greats who have been affiliated with H&M so far, and to be designing a collection appealing to fashion savvy, street smart women, and to be including some great pieces for men, too. Jimmy Choo will bring to H&M a sophisticated, fashion forward, accessible and glamorous collection – the perfect party pieces to buy now and then wear out that night!” Tamara Mellon, Founder and President, Jimmy Choo.
This type of “exclusive designer line” isn’t a new concept. Sigerson Morrison did it with a shoe line at Target. Vera Wang did it with an apparel and accessory line at Kohl’s. Even further, H&M has a history of this – they’ve already showcased lines from Stella McCartney and Madonna in their stores.
But, I have a few questions…
One: Is creating a less expensive version of a coveted brand that is associated with luxury and exclusively a smart tactic in that it is attainable by a broader audience or does “cheapen” the brand and make it less appealing to people who desire the exclusivity factor?
Two: Kohl’s reported an increase in third quarter earnings, part of this has been attributed to the Vera Wang line it carries. So, if a company brings in a designer line are they therefore dependent upon carrying this type of line to sustain growth?
On a larger scale, I was thinking of this is terms of other industries…
When a swanky, high-end restaurant creates a dollar meal, how do core customers react? Might they not be as inclined to take a client to the restaurant in fear of looking “cheap?”
What about automakers? Toyota and Lexus are both owned by the Toyota Motor Corporation, but each is completely separate under the brand umbrella – each its own unique identity, each sold at designated dealerships and each offer completely different makes and models. Would the corporation be the same if all cars were referred to as Toyotas and some were just more expensive than others? I admit, this is not direct parallel to the Jimmy Choo and H&M relationship, but something to think about perhaps….
I’d love to hear thoughts, theories and opinions about this topic…


Northwestern’s Medill was a pioneer in the creation of the
Management
I just finished a wonderful book by Naomi S. Baron –