The news is more than a sensation. Certainly, Karl Lagerfeld has, aside from his work for Chanel, created fashion for the small purse before; for the German dress maker Steilmann and for the mail-order establishment Quelle. But those were regional excursions into the mass business. And before Karl Lagerfeld, Pierre Cardin Couture had already democratized fashion and opened the door to chic and good appearance for millions. But that was a long time ago and under different circumstances.

Hennes & Mauritz, or H&M, like the company also calls itself, mixed up the market massively. It is an attack on all competitors who say they are taking up the center of the market with their names and products. It is an attack on all competitors, who operate without a profile at the lower end of the market. It is an attack on all competitors, who are located in the premium segment of the market, but claim to make luxury a little more affordable.

Hennes & Mauritz is making luxury truly affordable, by sharing the creativity of Karl Lagerfeld with Chanel and therefore positioning itself in the PremiumEconomy segment of the Waisted Rectangle©2004 (our picture of current and future sales markets) above their own previous competition with a touch of luxury.

Adidas and Puma, the manufacturers of formerly simple soccer shoes, have dared to leap successfully into the brand first league with Yamamoto and Jil Sander (when Jil Sander was still the synonym for pure luxury). The man who gave new life to Chanel is making the jump possible for H&M. They will show the whole world, literally the whole world, that creative fashion can be top and inexpensive.

We recently wrote that the future belongs to the strong brands of the PremiumEconomy segments of current and future sales markets. H&M has obviously recognized that and conducts an upgrade to the advantage and delight of their customers. It does not take a prophet to realize that more and more businesses are going to take the chances comprised in the PremiumEconomy segment.