Core Viewpoint - COS, a brand under H&M, was launched in 2007 to create a distinct high-end identity separate from the main brand, aiming to mitigate risks and expand market reach [3] Group 1: Brand Development and Market Positioning - COS quickly gained recognition, with its U.S. launch in 2013 being highlighted by VOGUE as a highly anticipated brand [3] - In 2017, COS's revenue surpassed $1 billion, accounting for 5% of H&M Group's total income [3] - The brand faced challenges during the pandemic but has recently regained growth momentum as consumer trends shift back to rationality [3] - In Q1 2025, COS ranked sixth in the LYST's top ten hottest brands, being the only non-luxury brand on the list [3] Group 2: Pricing Strategy and Target Audience - COS's pricing strategy positions it between high street fashion and luxury brands, with products like a shearling collar jacket priced around £1,000 (approximately ¥9,770) [4] - The brand targets aspirational consumers who seek quality and design at a more accessible price point, filling a gap left by rising luxury prices [6] - COS is increasingly compared to high-end designer brands rather than mid-range ones, reflecting a shift in its market perception [6] 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 [7][9] - The opening of the first store in Xi'an marks a significant milestone in COS's expansion strategy in China [9] - The rise of brands like COS is partly attributed to the consolidation of luxury brands into a few major groups, which has shifted focus from product quality to profit [9] Group 4: Industry Trends and Designer Movement - Many designers are leaving traditional luxury brands for fast fashion groups, indicating a trend where creative talent is increasingly attracted to larger fashion companies [10] - COS's management emphasizes a lifestyle attitude rather than targeting younger generations specifically, focusing on cultural sensitivity and urban thinking [11]