Core Viewpoint - COS, a brand under H&M, was established in 2007 to create a distinct high-end identity separate from the main brand, aiming to mitigate risks and expand market reach [4][5]. Group 1: Brand Development and Market Position - COS quickly gained recognition, with its U.S. launch in 2013 being highlighted by VOGUE as a highly anticipated brand [5]. - By 2017, COS's annual revenue surpassed $1 billion, accounting for 5% of H&M's total revenue [5]. - The brand faced challenges during the pandemic due to reduced foot traffic and a decline in online growth, but has recently regained momentum as consumer trends shift back to rationality [5]. Group 2: Pricing Strategy and Target Audience - COS's pricing strategy positions it between luxury and fast fashion, with products like a shearling collar jacket priced around £1,000 (approximately ¥9,770) [6]. - The brand targets aspirational consumers who seek quality and design at a more accessible price point, filling a gap left by rising luxury prices [8]. - COS is increasingly compared to high-end designer brands rather than mid-tier brands, reflecting a shift in its market perception [8]. Group 3: Expansion and Market Strategy - COS has accelerated its store openings in China, with new locations in major cities, indicating that China remains its largest market [9][11]. - The brand's entry into the northwest region of China with its Xi'an store marks a significant milestone in its retail network expansion [11]. Group 4: Industry Trends and Designer Movement - The luxury goods industry has seen a consolidation into a few major groups, leading to a shift in focus from product quality to profit maximization [11]. - Many designers are leaving traditional luxury brands for fast fashion groups, indicating a trend where creative talent is increasingly attracted to larger fashion entities [12]. Group 5: Consumer Demographics and Brand Identity - COS's management emphasizes a lifestyle attitude rather than targeting a specific younger demographic, focusing on consumers who are culturally aware and urban-minded [13].