H&M Aims to Outsmart Rivals by Holding Steady Amid US Tariff Turbulence

H&M plans to hold its prices steady in the U.S. as rivals like Zara and Shein raise theirs due to tariffs. By doing so, H&M seeks to capture more market share amid the fast-fashion industry's challenges related to shifting consumer sentiment and production strategy adjustments.

In a strategic move to capture market share from rivals, H&M is opting to maintain stable prices in the United States, defying the price hikes initiated by competitors such as Zara and Shein. This decision comes amid disruptions in the fast-fashion industry, driven largely by fluctuating tariffs on imports from Asia.

H&M CEO Daniel Erver acknowledged the turbulence caused by these tariffs, which has forced the Swedish fashion giant to prepare for various business scenarios. In a recent interview with Reuters, Erver emphasized the importance of gauging U.S. consumer sentiment, which has waned due to the economic uncertainty linked to tariff changes.

Amid the price war, H&M is also adapting its production strategy. The company plans to shift some of its manufacturing away from China, which faces high tariffs, to more cost-effective regions like Bangladesh. This realignment aims to ensure competitive pricing and improve supply chain efficiency.

(With inputs from agencies.)