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H&M and LVMH Are Chasing Gen Z With New Investments

H&M and LVMH sit on opposite ends of the fashion spectrum, but they've got the same goal.
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@Madhappy

· less than 3 min read

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Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

LVMH and H&M are at opposite ends of the fashion spectrum, but they went shopping for the same customer this week.

At LVMH...Luxury Ventures, the conglomerate’s venture capital arm, led a $1.8 million funding round for the streetwear label Madhappy. It’s not the usual LVMH brand: Madhappy primarily sells hoodies and sweatpants. It’s generated $1 million in revenue since opening in 2018.

At H&M...it invested just over $5 million for a majority stake in Sellpy, a resale platform that processes and sells used clothing. It’s hoping Sellpy can become a global secondhand fashion site.

The common thread? Gen Z. LVMH and H&M’s investments focus on streetwear and resale, two retail trends e-girls and e-boys love.

  • Trendalytics values the streetwear market at around $309 billion, and its top brands are hugely popular with 15.8 year olds.
  • In a thredUP survey, at least one in three Gen Z respondents said they expect to shop secondhand this year.

My takeaway: Millennials, our time to shine with retailers is over. Gen Z’s $830 billion in spending power is the new shiny object.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.