H&M is one of the low-price champions of the high street but is now setting its sights a little higher with new range Collection of Style.

Also nicknamed Cos, the range will be of premium quality and with higher prices. It will be launched in the Regent's Street store on March 16th.

Nils Vinge, the firm's investor relations manager, said: "We've been trying to upgrade for a while and our design collaborations show that we can operate at that level and higher.

"There are a lot of customers that don't shop at H&M for whatever reason and we want them."

He added that Cos will benefit from logistics and economies of scale so that H&M can keep its costs low.

This is in addition to H&M's new ethical clothing range which features organically grown cotton separates for women, teens, children and babies.

In the US some 105 of the brand's stores now stock their designer collaboration range including the Karl Lagerfeld and Stella McCartney lines with M for Madonna starting next month.