Strategy Case Study - HMV Takes on Clothing Diversification
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Catching up on some news clippings from the last couple of weeks, I came across this excellent example of a retailer looking to diversify into new markets…
We reported on one part of HMV’s diversification strategy back in October 2009 - when the music retailer announced plans to open a series of cinemas.
Now HMV is attempting to grab a share of a niche segment in the clothing market. It is targeting the “entertainment-inspired” clothing market.
According to the article, HMV’s move into fashion will initially consist of a range of clothing, with iconic rock and film imagery aimed at the 18-30 year-old male market. Launching in 200 of HMV’s 313 stores by July, 40 stores will receive a full clothing department called The Studio.
This sounds like a tough task for HMV. It might take some time for consumers to associate HMV with clothing, and it is sure to face pretty stiff competition from the likes of Topshop, River Island and the many fast-fashion chains who compete intensely for a share of the 18-30 fashion spend on the high street.
However, given the weakness in sales experienced by HMV recently, perhaps the diversification strategy is a sensible option to broaden the base of the business.
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HMV Strategy - Death of a Billion Downloads [24 Apr 2011]
What strategy should HMV employ next? [6 Jan 2011]
HMV Diversifies into Cinema [26 Oct 2009]
SWOT analysis for Britain’s leading high street retailers [30 Dec 2008]
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