H&M teams up with Versace

Italian designer Donatella Versace, wearing a piece from the H&M/Versace collaboration, acknowledges the audience at the end of the Versace Spring-Summer 2012 Menswear collection on June 20, 2011 during the Men's fashion week in Milan.

Jeremy Hobson: The cheap chic clothing company H & M said today its profits fell last quarter -- but not by much. And next month, the company will become the latest mid-range retailer to team up with a big name in fashion. H&M will be launching a collection
designed by Versace.

And as Sally Herships reports, the company would be well-advised to study the ups and downs of Target's recent collaboration with Missoni.


Consumers want to buy their aspirations, which they tried to do when Target offered a discount line of Missoni products. Shoppers were angry about hard-to-get goods, but when high fashion meets mass market, the real risk is to the luxury brand being available at a discount for too long.

Paul Swinand is a retail analyst at Morningstar.

Paul Swinand: Once you've done that deal with pennies, it would be tough to go back upscale as a high-end brand in Nordstrom and Saks.

Versace and H&M's solution? Fast fashion -- move the line in and move it out.

In New York, I'm Sally Herships for Marketplace.

About the author

Sally Herships is a regular contributor to Marketplace.

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