Daniel Ervér will replace Helena Helmersson as H&M chief following loss in profits | Why is the brand failing?

Helena Helmersson, 51, has worked for the Swedish clothing brand for over 26 years,and explained the decision to step down wasn’t “easy” and she felt it was “time to leave the role” according to the Financial Times. 

Daniel Ervér will step into his new role with immediate effect. The 42-year-old has worked for the company since 2005 when he began as a summer trainee. During the press conference, Daniel said: “I am both honoured and very happy for the board’s confidence and motivated and humbled by the task.” H&M has reported a drop in profits over the past few years and the retailer has previously said it is prioritising profitability over sales. 

The fashion brand recently faced backlash over the inappropriate marketing campaign that featured two young girls advertising school uniforms. 

Is this the end of H&M? 

It was once the go-to clothing brand for high end fashion at affordable prices, but over the past few years H&M seems to be losing its fanbase. As for high-street stores, H&M was always in competition with Spanish retailer Zara. Both had very similar styles and target audience, but H&M was always the more affordable option. 

I think shoppers have changed the way they think about buying clothes. We seemed to be heading towards a more sustainable and ethical way of shopping before the COVID pandemic and cost of living crisis. But now it seems shoppers have regressed and fallen back into shopping more for less. Even me someone who is a life-long fan of H&M has been lured away by cheap clothes and buying more.

Primark is always a good example for how consumers shop fast fashion but since 2020 Shein has seen its profits skyrocket. The company sees shoppers wanting more for their money and when it comes down to the quality, sustainability or ethics of a product, it seems it is not their priority. The Chinese fashion company has even taken over online brands such as Pretty Little Thing and Boohoo as one of the biggest online retailers in the world. 

What does H&M need to do to make a comeback? 

In 2023, the Swedish brand collaborated with luxury fashion houses Mugler and Rabaane. The collections sold out quickly due to the low price for luxury fashion although it seemed expensive for H&M. 

If they do another collaboration, it needs to be different. The first ever collaboration was with Stella McCartney in November 2005, it had never been done before and people were queuing round the block. That is the kind of H&M we need to have back thinking outside the box, not just doing collab after collab every year because it worked well once. 

H&M need to get their target audience back and lure them away from fast-fashion brands. How they will do that, well that will be up to Daniel Ervér who hopefully has a plan to get the brand back on top, otherwise we will see another high street store closing down. 

Natalie Dixon is NationalWorld’s Lifestyle reporter. If you liked this article and want to read more about fashion and beauty you can follow Natalie Dixon on X (Twitter) here.