The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
STOCKHOLM, Sweden — Fashion chain H&M is acquiring a stake in Swedish fintech company Klarna, the Financial Times reported.
The world's second-largest clothes retailer is paying SEK 185 million (£15.6 million) for a stake of less than 1 percent in Klarna, which is issuing new shares to H&M, people involved in the transaction told FT.
The deal will start in 14 European countries, starting with the U.K. and Sweden, but has the scope to expand to the U.S. and Asia, according to Klarna, the FT reported.
The deal promises to simplify H&M's returns and delivery processes which has been a source of frustration to many customers as well as combining its in-store, online and mobile payments, the newspaper added.
ADVERTISEMENT
Klarna Chief Executive Sebastian Siemiatkowski told the Financial Times that the deal would be the company's largest partnership following similar deals with UK retailer Asos and furniture giant Ikea.
Traditional retailers like H&M have been facing increased competition in the online fashion market from e-commerce giants like Amazon.com Inc.
H&M and Klarna were not immediately available for comment.
By Rishika Chatterjee; editor: Sunil Nair.
The algorithms TikTok relies on for its operations are deemed core to ByteDance overall operations, which would make a sale of the app with algorithms highly unlikely.
The app, owned by TikTok parent company ByteDance, has been promising to help emerging US labels get started selling in China at the same time that TikTok stares down a ban by the US for its ties to China.
Zero10 offers digital solutions through AR mirrors, leveraged in-store and in window displays, to brands like Tommy Hilfiger and Coach. Co-founder and CEO George Yashin discusses the latest advancements in AR and how fashion companies can leverage the technology to boost consumer experiences via retail touchpoints and brand experiences.
Four years ago, when the Trump administration threatened to ban TikTok in the US, its Chinese parent company ByteDance Ltd. worked out a preliminary deal to sell the short video app’s business. Not this time.