H&M's play with developing COS has been fascinating to watch from a business perspective. It seems that mature companies typically hit an impasse where they either stick to what they're comfortable with, or they pivot. Stay the course too long, and they need to do a massive restructuring when the industry bottoms out (I think of GE). Pivot too early, and they lose the brand's backbone.

Liquid companies --sometimes known as successful companies-- have cash available to buy startups and spin off startups in an effort to catch the next wave, rather than messing with their core business. This is what H&M did with COS back in 2007. To me, that COS is now generating north-of $625M isn't even the impressive part. What I find amazing is that H&M, a company that's making over $21.7B, is putting so much effort in to a division that accounts for less than 3% of revenue. I understand that margin comes in to play here, but still.

Leadership at H&M is preemptively establishing brand awareness, and I would imagine that most consumers don't even know COS is a subsidiary.

Brandon Cohn