The Great Recession changed Millennials spending habits. It made them less trusting and reliant on credit cards and debt than previous generations, and gave rise to fast fashion brands like H&M which offer stylish clothing at reasonable prices. But as the generation finds their wallets swelling a decade on, these brands are finding they’re losing their cachet with the coveted demographic, and are looking to ways to recapture their attention.
The Balancing Act of Price and Quality
Enter Nyden, H&M’s answer to this downward trend of millennial interest in their products. The name itself is a portmanteau of the Swedish words for “new” (Ny) and “it” (den), which offers a clue into what they’re going for branding-wise. Details about what the brand will include are sparse so far, but MaryLeigh Bliss, chief content officer at Pulse told Glossy the brand will look to strike a balance between price and quality, owing to Millennials’ increased interest in buying fewer, higher-quality items than in recent years.
The spin-off brand will target the generation’s up and coming thirst for quality goods that feel and look luxurious and trendy without the hefty price tags that often accompany such clothing. H&M has also been revamping its online presence in an effort to draw in more Millennials, for whom shopping online is a more frequent occurrence than other older generations. Millennials also have a big interest in sustainability, which is something fast-fashion brands have been known for in the past and Nyden could be looking to incorporate into their business model.
Fast Fashion Competition is Heating Up
The concept of fast-fashion is to bring clothing from runways to store shelves in a short period of time, getting a jump on the competition for offering hot new looks at reasonable prices. As the Millennial set finds themselves joining the ranks of the gainfully employed, and their amount of disposable income increases, these inexpensive yet stylish versions of high-fashion pieces are being supplanted by higher-quality, pricier items, albeit purchased in smaller quantities.
Fast Fashion has been very hot in the retail world over the last decade or so, but luxury brands like Burberry, Tom Ford, Michael Kors and others have begun to speed up their supply chains to offer their latest products to consumers faster than ever before. This has made Millennials’ highly sought-after middle ground between price and luxury easier to reach, and is forcing fast fashion brands to rethink their strategies to improve quality while keeping price points reasonable to accommodate for the more discerning, and monied, Millennial shopper.