Hennes & Mauritz , the world’s second biggest clothing retailer, is launching a new sportswear line with the help of Sochi-bound Swedish Olympians in a bid to outpace discounters like Primark that are snapping at its heels.
The global sportswear market will grow more than 7 percent in 2014, outpacing 5.8 percent growth for broader apparel, according to Euromonitor. H&M hopes that by muscling into a market seen to be worth USD220 billion this year it can move away from the cut-throat budget fashion area and towards higher-margin products could help it copy the success of Inditex’s mid-market fashion chain Zara.
While unlikely to pose a serious challenge to pricey performance gear dominated by Nike Inc and Adidas AG, H&M could chip away at their sales of casual and fitness wear.
(Source: CNBC)