H&M launches its ‘other’ brand in Australia, as retailers chase exclusivity

Global fashion brands wanting to enter the Australian market are increasingly choosing exclusive deals with retail partners over opening their own stores and “.com.au” channels, which was the dominant method during the 2010s influx that brought in the likes of Zara, UNIQLO and Sephora.

From tomorrow, The Iconic will be the only place in Australia customers can buy from brand & Other Stories, described as Swedish fast-fashion giant H&M’s more sophisticated, feminine older sister. It has three million Instagram followers, and celebrity fans including Meghan, Duchess of Sussex, who wore one of the brand’s dresses during her 2018 tour of Australia, and actresses Emma Roberts and Selena Gomez.

The benefit of such deals are twofold: for the retailer, the strategy is a way of testing a market without having to invest in bricks and mortar. But what’s in it for the consumer?

For starters, there’s the knowledge the same dress won’t be available on every street corner, but there’s also greater certainty around price, says The Iconic’s chief commercial and sustainability officer, Gayle Burchell. This is particularly important for The Iconic’s Gen-Z customer base, which is the e-tailer’s fastest-growing segment, she says.

A selection of styles by &Other Stories is already available on e-tailer ASOS, but this is the first time the brand will be sold through an Australian retailer, which will radically reduce shipping time. The Iconic will carry about 250 pieces, curated to the Australian market, in the launch phase. Prices range from $50 to $350.

“The exclusivity [arrangement] … means our customers don’t have to shop around,” Burchell says. “There isn’t going to be a lot of price comparison … and they can trust us we are going to bring the best assortment for them.”

Still, she’s quick to reassure consumers that Australia won’t be getting last year’s cast-offs. “A lot of European brands have realised that’s not how to best get a result in this market,” she says.

As fashion retail moves towards a “phygital” model – a hybrid of physical and digital, where practically anyone with high-speed internet can become a player – exclusivity is becoming a more valuable commodity, especially for legacy operators. It’s how Mecca founder Jo Horgan built her cosmetics empire (Mecca declined to be interviewed for this story), and what underpins David Jones’ tag line: “Available at no other department store”.