A long black woollen coat by Karl Lagerfeld at H&M

Swedish group Hennes & Mauritz (H&M) is set to topple Marks & Spencer (M&S) as Europe's biggest clothing retailer.

According to a study by market research group Mintel, Hennes could snatch the top spot from M&S next year if its recent strong sales growth continues.

Among the clothing hanging on the racks of H&M's bargain basement this autumn is their secret weapon - fabulous design on the cheap.

Designs include those by Chanel's Karl Lagerfeld.

So why has the company become so successful and is it fair to compare it with M&S?

Fashionable

"Hennes is responding to the demand in the market," says Richard Perks, director of retail research at Mintel.

"They can really produce the fashionable designs and get them on the street very quickly at low prices.

Richard Perks of Mintel

"That's exactly what the young people want these days.

"And if you add to that the good quality, low price basics they produce, then they have a very powerful offer that they are rolling out around Europe," adds Richard.

All eyes are on M&S to see if the company's share price can reach that promised in a recent takeover.

Comparison

Things are changing quickly, but is the comparison with H&M fair? Not everyone thinks so.

Richard Hyman of Verdict Research

"I think H&M are stealing a march on M&S in several ways," says Richard Hyman of Verdict Research.

"This is probably most notable in kids wear, where the company is particularly strong and M&S is particularly weak.

"H&M also do well in the general area of price.

"The company very cleverly structures its price ranging and it does that in a way that M&S has yet to learn.

"And in that sense it is certainly stealing a march on M&S.

"However, it's not fair to compare them because M&S is trading in one or two countries whereas H&M is trading across mot countries in Europe," adds Richard.

On the street

But if you ask shoppers to make a comparison they don't shy away from the challenge.

In general young buyers seem to feel that H&M offer more choices and at better prices.

Older buyers feel the company's stock is aimed at younger people and seem to prefer the larger sizes and more traditional appeal of M&S.

It looks like a battle that will run and run.

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