What: H&M doubles down on a marketplace approach which differentiates it from Zara.

Why this is important: Beware of brands turning into retailers to attract more traffic.

Swedish fashion conglomerate H&M is planning to add more third-party brands to its stores and online platforms in an effort to attract a larger customer base.

This strategy, initiated last year, is in response to competition from retailers like Shein and Zalando. The company has already incorporated 70 external brands into its platform across six markets, a move that resulted in better-than-expected profits last quarter.

This approach differentiates H&M from Zara, which typically collaborates with other brands only for exclusive collections.

H&M adds more third-party brands online and instore to attract shoppers