Tag: h&m

  • Zara Vietnam flagship nearly ready

    Zara Vietnam flagship nearly ready

    Zara Vietnam’s flagship store is taking shape at Vincom shopping mall in Ho Chi Minh City, and is expected to open soon.

    The Spanish fast-fashion brand announced in May that it would expand to Vietnam this summer, setting its debut store’s opening date for this month. However, posters in the city say the store opening is next month. It is expected the store will have two storeys.

    Zara-Vietnam

    Fast-fashion brands are popular in Vietnam, and Zara has a huge customer base there. After ordering online and having items brought in from overseas, Vietnamese customers have been eagerly anticipating the arrival of its stores.

    However, the brand would need to look at its pricing. Vietnamese consumers have found that while some brands are considered economical in the West, once they enter Vietnam their prices double or even triple, with Mango and Topshop typical examples.

    Mango Mega store VN

    Zara is aiming to open up to 360 stores globally this year, and in Vietnam is sharing the market with other international fashion like Gap, Nine West and Ralph Lauren.

    Meanwhile, Mango is planning to open a men’s store in Vietnam, and H&M is said to be considering expansion in Vietnam.

  • Uniqlo Canada stores about to launch

    Uniqlo Canada stores about to launch

    Japanese lifestyle retailer Uniqlo Canada is close to opening its first two stores, in Toronto.

    Uniqlo Canada COO Yasuhiro Hayashi says the autumn collection to feature at the stores has special technology to provide warmth in Canada’s icy winter. The brand’s Heattech innerwear features moisture-wicking fabric that retains heat, and also has anti-odour properties.

    Women’s and men’s collections range from casual to dressy, including a variety of cashmere sweaters as well as lightweight down jackets and vests.

    Uniqlo’s first Canadian store will open in late September or early October at CF Toronto Eaton Centre. Between fashion retailers Nordstrom (opening on September 16) and H&M, which has had a major expansion, the Uniqlo store will cover about 28,000 sqft (2600 sqm) over two levels.

    Uniqlo’s second Canadian store will open at Yorkdale Shopping Centre in October, in a new $331 million 300,000 sqft wing anchored by Nordstrom. Uniqlo will occupy about 24,000 sqft over two levels and be a neighbour with fellow Japanese lifestyle retailer Muji.

    Hayashi says Uniqlo’s Canadian store expansion will be gradual, with the company seeking to create brand recognition before moving into new markets.

    Uniqlo’s Canadian broker, Jeff Berkowitz of Aurora Realty Consultants, says Toronto was picked as the brand’s introductory market, and he is now looking real-estate opportunities in western Canada.

    Retail consultancy HRD Advisory president Farla Efros says she thinks Uniqlo will be a big success in Canada as it fills a void in the retail landscape between upscale boutiques and fast-fashion.

    Meanwhile in Japan, Uniqlo’s same-store sales last month increased by 4.5 per cent year-on-year while own-store sales grew 4.7 per cent. Total sales, including online, rose 6 per cent. The company attributes the increases to higher temperatures this year.

  • H&M collaborates with Caitlyn Jenner for its newest athleisure range

    H&M collaborates with Caitlyn Jenner for its newest athleisure range

    A new H&M athleisure wear range is to be launched in July, developed with input from the Swedish Olympic team and fronted by personalities including Caitlyn Jenner.

    The launch of For Every Victory makes H&M one of the first major multinational fashion brands to make a serious foray into the booming athleisure wear market, to date dominated by fast-growing specialist brands including Lululemon, UnderArmour and 2XU.

    H&M -For Every Victory

    H&M For Every Victory – described by the H&M as “high fashion performance sportswear made to inspire” has been developed with input from the Swedish Olympic team, and the campaign is fronted by inspirational personalities who have all achieved their own victories, whether in sport or life.

    H&M -For Every Victory 1

    The athletes advised on design, performance and wearability. H&M also designed outfits for the Swedish Olympic and Paralympic team for Rio 2016, including the opening ceremony uniform, selected competition pieces and the prize ceremony outfits.

    “This is a collection about performance with great style and the input of the Swedish Olympic team has been invaluable in the creation process,” said Pernilla Wohlfahrt, design and creative director at H&M. “The result is high fashion technical sports pieces for everyone to wear.”

    The For Every Victory collection has a similar visual expression and technical knowledge to the Swedish Olympic team collection, with its own colour palette in black, grey, dusty pink and gold. It is centered on performance T-shirts, running shorts and leggings, as well as sports bras for women.

    H&M -For Every Victory 3

    The quick-drying, breathable materials help to optimise performance and recycled polyesters prove that high-function sportswear can also be conscious and more sustainable − all showing that there’s no compromise on either fashion or performance.

    H&M -Olympic collection

    Among the personalities fronting the new range are Caitlyn Jenner with her Olympic gold medal in the decathlon; Chelsea Werner, a gymnast who has never let Down Syndrome halt her progress; surfer Mike Coots who still takes to his board even though he lost his leg in a shark attack and boxer Namibia Flores who has fought against prejudice to pursue her dreams.

    The new range and brand will be launched globally on July 21.

  • Indonesia shines for retail investment

    Indonesia shines for retail investment

    Southeast Asia’s largest economy, Indonesia, is ranked the world’s fifth most-attractive market for retail investment in AT Kearney’s 2016 Global Retail Development Index.

    In previous years it has ranked in the top 20.

    It is an exciting time to be investing in Indonesia’s retail sector, the index says. The country scores 64.3 in market size (out of a 0-100 scale) and low in country risk (38.9) – lower than the top three markets, China, India and Malaysia. Urgency to enter the market is rated at 68.9, and the overall score of 55.6 is just one point behind Kazakhstan.

    “Despite its relatively low retail sales per capita and currency volatility, Indonesia’s huge population and cities make it quite attractive to foreign retailers, which see untapped potential in the country and are investing heavily in new development,” says the report, which covers 30 developing countries that represent more than half of total global retail sales.

    This is reflected by burgeoning foreign retail investments in the country, reports the Jakarta Post. It cites Dubai-based Lulu, which opened its first hypermarket in Indonesia this month with an investment plan of US$500 million covering nine hypermarkets and a warehouse. Meanwhile, Singapore’s Courts, South Korea’s Lotte, and Ikea and H&M from Sweden all have a presence and expansion plans in Indonesia. Courts plans to open four stores by next March to add to its existing five, and has seen its sales growth double since opening in 2014.

    Indonesian convenience stores Alfamart and Indomaret have also been expanding. Indomaret plans to add 1600 outlets this year to its 12,210 stores, while Alfamart is aiming for six-fold sales growth this year driven by its upgraded online presence.

    The government has opened up eCommerce to foreign ownership where the business value is more than Rp100 billion (US$7.49 million). According to the Indonesian eCommerce Association (Idea), eCommerce transactions are expected to reach $24.6 billion this year, three times more than in 2013.

    Indonesian retailers Matahari and Mitra Adi Perkasa have launched online shopping, while grocers Alfamart and Happy Fresh are extending their online offering.

  • Japan’s Uniqlo targets global stature with fashion identity

    Japan’s Uniqlo targets global stature with fashion identity

    Japanese clothing chain Uniqlo has leveraged its prowess in mass production to build a fashion empire filled with shelves upon shelves of affordable, good quality items like down jackets, underwear and T-shirts.

    Now the 17-nation, 1,734-store retailer is on a quest to beat Western giants like Gap, H&M and Zara to become the world’s biggest apparel maker.

    In the overcrowded, highly competitive casual fashion market, size is important but no guarantee of success: analysts say Uniqlo’s challenge is to carve out a brand identity of its own, going beyond its formula of delivering no-nonsense quality at good prices.

    “To win over consumers and break through the clutter, Uniqlo needs to get even more personal,” says Stuart Green, chief executive of Asia Pacific at Interbrand, which consults and ranks brands.

    “It will be critical for Uniqlo to maintain product quality and, most importantly, create a deeper, more emotional connection with its customers to drive brand loyalty,” he said.

    Interbrand ranks Uniqlo as Japan’s most valuable retail brand, and eighth among Japan’s global brands, including Toyota, Sony and Nintendo. The company’s founder and chief, Tadashi Yanai, is Japan’s richest man, according to Forbes magazine.

    Analysts say that to move it to its next stage of growth, Uniqlo also needs to beef up its digital presence and adapt to non-Asian markets. Winning over the huge market of suburban American shoppers will be crucial.

    Consumers these days are picking brands on digital platforms and social networks, as they increasingly shop online. To cope with the mind-boggling volumes of information online, consumers now rely on brands to serve as filters and curators, Green said.

    To help drive its global expansion, Uniqlo is tapping outside talent.

    It just hired Christophe Lemaire, formerly of Hermes and Lacoste, who started his own Uniqlo line last year, to head its Paris research center.

    In 2014, it brought in a global branding expert, John Jay. An American of Chinese origin, he who worked on ad campaigns for Nike, Coca-Cola and Microsoft, and a fleece campaign for Uniqlo, at U.S. marketing company Wieden+Kennedy.

    “Whether they’re in Beijing or New York, there is a commonality to young people and what they want in life,” Jay, whose title is president of Global Creative at Uniqlo’s parent company Fast Retailing, said at a recent Tokyo event, centered on Uniqlo’s second fashion show ever.

    “We have barely scratched the surface. Our potential is amazing,” he said.

    Uniqlo is still relatively small, with 44 stores in the U.S., 449 stores in China and 846 in Japan, its biggest market. Retail giant H&M of Sweden has 4,000 stores around the world, Gap Inc. of the U.S., 3,700 stores, and Inditex of Spain operates 7,000 Zara, Bershka and other brand stores.

    H&M and Inditex have posted healthy financial results recently, but Gap, which has the Old Navy and Banana Republic brands, is struggling, slashing prices to draw buyers and closing dozens of stores, including some in Japan. The Standard & Poor’s credit rating agency recently downgraded Gap’s debt to junk status.

    Uniqlo’s profits also have slowed recently, hurt by a warm winter that slowed sales of its down jackets, HeatTech underwear and other winter apparel.

    Fast Retailing, with 100,000 employees, forecasts a profit of ¥60 billion ($560 million) for the fiscal year through August, down 46 percent from the previous fiscal year, mainly because of falling profits at Uniqlo.

    Yanai’s turnaround plan includes sweeping cost cuts, improved efficiency, pricing reviews, and, perhaps most importantly, greater flair in the company’s fashion offerings, building on collaborations with designers.

    The company asked Nigo, a Japanese DJ with a reputation for innovation who created The Bathing Ape clothing line, to add more flair and edge to his T-shirts.

    Nigo added to the T-shirt line motifs from pop artist Andy Warhol, music producer and singer Pharrell Williams and from traditional Kabuki theater, in addition to old-time favorites like Mickey Mouse.

    A partnership with Carine Roitfield, former editor-in-chief of Vogue Paris, has brought into Uniqlo stores chic designs unlike most anything else you’d find.

    The company has strengthened its sportswear, signing on tennis stars Kei Nishikori and Novak Djokovic.

    Uniqlo also has partnerships with labels like Liberty London, with its colorful flower-pattern fabrics, and Hana Tajima, a designer who specializes in Muslim clothing such as head scarves and long dresses.

    “Uniqlo has a smart format, which stands out from most of the mass fashion retailers. Less concerned on fashion trends, and more focused on ‘basics’ or ‘investment pieces’ of good fabric and quality,” said Luca Solca, analyst with BNP Paribas. “They are trying to spice this up with designer collaborations.”

    Uniqlo executives believe fashion is globalizing, and people around the world, from China to New York, more or less want the same thing — quality for reasonable prices, and clothes that suit their lives.

    On a recent weekday, the company’s 12-story Ginza store was crowded, as tourists milled around snapping selfies in front of what has become a city landmark.

    Olga Symonenko, an IT worker from the Ukraine, said she had heard about Uniqlo from friends who had been to the store in the U.S.

    “The prices are good, and the quality,” she said, happily clutching two blue dresses. She said she and her husband planned to pick up 20 items.

  • The Philippines Set a New World Record Thanks to this Retail Brand

    The Philippines Set a New World Record Thanks to this Retail Brand

    As Swedish retail brand H&M continues to dominate the Philippine shores, it seems that they also got a prestigious award along the way.

    Last year, H&M Philippines unveiled a 50 x 50 foot coat hanger in Ayala Center Cebu during the opening of their largest South East Asian branch to date. Not only was it a sight to see for local mall-goers, it also recently got the Guinness World Record for the World’s Largest Coat Hanger.

    Yes, there is such a record. I was as surprised as you. Also, I wonder how many clothes can we hang on that?

    What do you think about that? Leave your comment!

  • New beauty range in H&M Singapore

    New beauty range in H&M Singapore

    Fast fashion chain H&M Singapore is to launch its beauty range in its city stores.

    The Swedish company made its debut in the category late last year and in the third quarter of this year Singapore will be the first market in Asia where beauty products go on sale.

    The product line-up includes cosmetics, body, skin and hair care products. The full range will go on sale in the H&M Orchard Building store and H&M Raffles Place will stock make-up.

    “We are very excited to be the first market across Asia to carry the much-anticipated beauty concept,” said Fredrik Famm, country manager of H&M South-east Asia.

    “The H&M philosophy is all about offering shoppers the latest styles and quality fashion while staying affordable, and the upcoming beauty range will stay true to our mission. Similar to our fashion, we hope the extensive selection of our beauty range will allow fans to have fun exploring and creating any kind of look they want.”

    Singaporeans will be able to choose from more than 700 beauty essentials, from nail products to beauty tools.

    Internationally, H&M is about to launch two additional collections within the beauty range: A premium body care line and the Conscious branded range of sustainable products which are Ecocert-approved.

  • Chinese sports brands back in the race

    Chinese sports brands back in the race

    A government-backed campaign to encourage healthy living is helping give Chinese sports brands traction again in the domestic consumer market.

    After three tough years with the slowing economy and over-expansion following the Beijing Olympics in 2008, the brands are ready to compete again, thanks to cutbacks in store networks and more choice in online sales channels.

    When Beijing was preparing to host the Olympics, sportswear companies began to expand aggressively, with leading brands adding nearly 1000 points-of-sale each every year between 2007 and 2011, according to Hong Kong brokerage and investment group CLSA analyst Dawei Feng.

    However, sales were undermined by cheap knock-offs and competition from expanding overseas fashion chains such as H&M, Uniqlo and Zara.

    Between 2012 and 2013, China’s biggest sports brand Anta closed 900 shops across the country. Also cutting stores from 8255 to 6133, Li Ning became profitable last year after three years of losses.

    Anta has been working with its stores on marketing, says Bloomberg Intelligence analyst Catherine Lim. It also started a children’s brand after China scrapped its one-child policy.

    Anta, which holds distribution rights to the Fila brand in China, is the official sportswear sponsor of the Chinese Olympic Committee.

    China’s five publicly traded sportswear companies have a combined market value of about $9.4 billion, or less than a 10th of Nike, the world’s largest sporting-goods maker.

  • Zara India cuts prices as rival arrives

    Zara India cuts prices as rival arrives

    To be more affordable for the market, Zara India has cut its merchandise prices by 10 to 12 per cent.

    The Spanish fashion brand took this move to coincide with the entry of rival H&M into India, reports the Business Standard.

    Established in India for six years in a joint venture with Tata’s Trent, Zara has 16 stores and is planning to open more. H&M has three stores after arriving late last year.

    Though it has become the fastest fashion brand to achieve $100 million revenues, Zara has seen a slowdown in sales growth. Its prices are reportedly 30 per cent higher than H&M. It has 7013 stores internationally, while H&M has about 3900 in 61 markets.

    Both brands are in malls in India’s National Capital Region, such as Select City Walk in Delhi and Mall of India in Noida. In Mumbai, H&M is planning to open a store next to Zara in High St Phoenix and in Phoenix Market City, Kurla, where Zara also has a store.

    Zara’s sales in India were down from 43 per cent in 2014 to 23 per cent last year, according to the Trent annual report.

  • H&M India opens Swedish brand’s 4000th store

    H&M India opens Swedish brand’s 4000th store

    Bollywood actress Parineeti Chopra hosted the grand opening of Swedish fashion brand H&M India’s newest – at the Mall of India in Noida, near Delhi.

    The shop is the 4000th globally to bear the famous red H&M logo.

    Covering 37,000 sqft (3437 sqm), the store has four floors, each devoted to apparel and accessories for women, men, teenagers and children respectively.

    parineeti chopra h&m india 1

    H&M country manager Janne Einola, area manager Mikko Alatalo and store manager Varun Pratap Singh cut the red ribbon to officially open the store.
    A queue formed ahead of the opening, with the first 10 customers receiving a gift card worth Rs 4000 (US$60), while the next 200 in the queue each received a goodie bag and gift card worth Rs 500.

    parineeti chopra h&m india

    DJ spin-offs were a feature of the launch, as well as dance and fashion contests for the customers.

    Parineeti Chopra was clearly impressed: “I’ve always liked H&M’s exciting and affordable fashion- there is plenty of inspiration in store to create your personal style. The opening was incredibly fun!”

  • Bloom time for kids’ fashion

    Bloom time for kids’ fashion

    Mrs Madelaine Wong buys new clothes for her three children every fortnight.

    The 37-year-old, a regional director of sales, shops for them during lunch time or after work.

    While Mark, six, Lauren, four, and Jude, one, are at a stage of their lives where they outgrow their clothes quickly, Mrs Wong admits that she also buys them new clothes because she feels guilty about not spending enough time with them. She thinks that shopping for them is a way for her to show affection.

    She spends about $100 on each shopping trip and is a regular customer at mass market-label stores such as Cotton On and H&M.

    “I get suckered into shopping at Cotton On’s online store when the brand is having a 20 per cent discount storewide. I go online and think to myself, ‘Okay, I think they need some more pyjamas’, or I will see a pretty dress and add it to the shopping cart.”


    Lauren Wong may be only four, but her wardrobe is bursting at the seams, thanks to her mother buying her new clothes every fortnight. PHOTO: DIOS VINCOY JR FOR THE STRAITS TIMES

    While parents and grandparents may have grown up with a culture of saving as much as possible… they may now feel that they could be a bit freer spending on their children and grandchildren.

    DR SESHAN RAMASWAMI, associate professor of marketing education at Singapore Management University

    Thanks to indulgent parents like her, the children’s clothing market has become the one bright spot in the weak retail sector.

    The range of children’s clothes has expanded in recent years, with the arrival of new brands and the expansion of existing ones.

    Australian label Seed Heritage, which carries clothes for women and children (from babies to teenagers), debuted with a splash in Singapore last year by opening three stores in Parkway Parade, VivoCity and Wisma Atria.

    The label’s general manager, Ms Denise Haughey, says that the 16-year-old brand had received regular inquiries from mothers living here before it opened in Singapore. She declines to give sales figures, but says: “Singaporean parents really enjoy dressing up their little ones.”

    Seed Heritage clothes feature plenty of whimsical prints and stylish pastel colours and are priced between $7.95 for three pairs of boy socks and $59.95 for a girl’s embroidered dress.

    Israeli high-street label Fox, which carries clothing for women, men and children, has enjoyed an “overwhelming” response to its children’s and baby collection.

    A spokesman for Wing Tai, which distributes the brand here, says the good response can be seen from the large number of members who sign up to collect points for discounts. The brand has accumulated 120,000 members since opening here in 2004.

    The spokesman adds: “We’ve noticed parents are becoming more trend-conscious when it comes to dressing up their children and this has helped spur the childrenswear industry.”

    Popular Swedish high-street fashion label H&M revamped its flagship store at Orchard Building in 2014 to devote the fourth floor to its children’s clothing department.

    The department previously shared space with its men’s fashion.

    H&M’s clothes for children, aged from newborn to 14, include T-shirts, jeans and cotton dresses.

    Like in the adult range, the children’s clothes are priced competitively, ranging from $19.90 for a white lace top for girls to $59.90 for a cotton blazer for boys.

    Ms Abby Wee, public relations manager for H&M Singapore, says the brand has also expanded its childrenswear range to include sportswear, swimwear and dancewear because of strong sales in childrenswear.

    Japanese casual wear label Uniqlo carries children’s clothes in 20 of its 24 stores in Singapore.

    Another popular Japanese label, Muji, sells its children’s collection at three of its nine stores here.

    Ms Jasmine Sng, general manager for Muji (Singapore), says the label had received many requests to bring in childrenswear. Muji shirts and dresses for children range from $12.90 to $59.

    Ms Sng says the sales of children’s and babies’ clothes have grown from 7 per cent of total garment sales in 2014 to about 10 per cent.

    The expansion in children’s labels is also mirrored in the luxury end of the market.

    The Shoppes at Marina Bay Sands expanded its children’s section late last year.

    Italian label Dolce & Gabbana Junior opened a 1,400 sq ft space in October. The outlet is the brand’s first junior store in the region and its collection carries clothes for children aged newborn to eight years old.

    Designer multi-brand retailer Club 21 opened standalone Armani Junior and French label Bonpoint stores at Marina Bay Sands in December.

    Other children’s labels at The Shoppes include Baby Dior, which opened a 900 sq ft store in 2014 and Ralph Lauren Children, which opened its largest standalone store for childrenswear in South-east Asia in the same year. The flagship store for the American label spans 1,985 sq ft.

    The designer label clothes for children can cost $550 for a boy’s shirt and a couple of thousands of dollars for a party dress.

    Paragon shopping mall also has a floor populated with childrenswear stores, including French brand Petit Bateau, international brand Nicholas & Bears, British brand Burberry Children, Filipino label Gingersnaps and multi-label store Kids 21.

    Retail experts interviewed say growing affluence and smaller families have led to the strong growth in the childrenswear market.

    Mr Samuel Tan, course manager (diploma in retail management) at Temasek Polytechnic School of Business, says: “With fewer children a household, parents or even relatives are willing to spend more on the kids.

    “With generally higher disposable incomes and more affluent dual-income families, design, look and quality of clothes are prioritised over price.”

    He adds that parents who are loyal customers of a brand are also more likely to shop for their children at the same store.

    “With the growing popularity of brands such as H&M, Uniqlo and Cotton On, the line extension is a logical move.”

    Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, says that retailers may be targeting the children’s fashion market to fend off online competition.

    He adds that today’s parents have higher incomes compared with those of previous generations and are more willing to spend on their children.

    “While parents and grandparents may have grown up with a culture of saving as much as possible and have grown used to spending less on themselves, they may now feel that they could be a bit freer spending on their children and grandchildren,” he says.

    Manager Jonathan Heng, 38, admits that he shops more for his two sons than for himself.

    “It is more because of necessity. They grow so fast and outgrow their clothes and shoes quickly,” says Mr Heng of Caleb, four, and Zachary, three months old.

    “My wife and I probably shop for them every other month. As parents, our lives are about our kids now anyway,” he adds.

    Ms Sharon Yeoh, a senior consultant at the Civil Service College’s Institute of Leadership and Organisation Development who has two daughters aged six and three, says she also shops more for her children than for herself. “It is more fun shopping for them. The clothes are so cute and pretty.”

  • H&M suppliers’ Bangladesh factories ‘unsafe’

    H&M suppliers’ Bangladesh factories ‘unsafe’

    Labour rights groups are calling on H&M to do more to protect garment workers in Bangladesh, after a review of strategic H&M suppliers revealed “severe delays” in urgent building repairs.

    The Clean Clothes Campaign, the International Labor Rights Forum, the Maquila Solidarity Network and the Worker Rights Consortium say the lack of action leaves “tens of thousands of workers at risk of death and injury”.

    The agencies were witness signatories to the Bangladesh Accord on Fire and Building Safety, and have published an update to an initial report into delays in safety repairs at 32 of H&M’s most strategic Bangladesh suppliers. The update, based on a review of publicly-available documentation carried out in January 2016, shows that all but one of H&M’s strategic suppliers remain behind schedule in making repairs and that over 50 per cent of them are still lacking adequate fire exits.

    “More than two and a half years into the process of the Bangladesh Accord every single mandated repair at H&M’s suppliers should have already been completed. However, the sad reality is that hardly any of H&M’s supplier factories in Bangladesh can be called safe,” said Scott Nova of the Worker Rights Consortium.

    The report does demonstrate some progress. Although the overall number of outstanding fire, electrical and structural renovations remains high at 37 per cent, the number of items reported as “behind schedule” at these 32 factories has decreased. However, the authors point out that, while this reflects actual progress in some cases, it is largely the granting of deadline extensions to factories rather than the completion of renovations that explains the improvement.

    “We are pleased that the pressure placed on H&M following our last report has resulted in some recent improvements, but are shocked that so much remains left to do,” said Liana Foxvog of the International Labor Rights Forum.

    “We urge H&M to provide meaningful funding for lifesaving safety renovations in order to put an end to the persisting delays.”

    Furthermore, the renovations required to ensure workers can safely exit a factory in the case of a fire are still subject to some of the most severe delays. In 13 per cent of the factories (compared to 16 per cent in September) lockable doors have not yet been removed; 38 per cent of the factories (compared to 55 per cent in September) still have not removed sliding doors and collapsible gates; and 55 per cent have failed to install fire-rated doors and enclosed stairwells (compared to 61 per cent in September. Any of these hazards could result in garment workers being trapped in a burning building, as has happened repeatedly in Bangladesh, including at H&M supplier, Garib & Garib, where 21 workers died.

    “H&M is able to increase profits in an extremely competitive climate, but yet the company is apparently incapable of getting all of its suppliers to carry out even simple actions such as removing a lock,” said Sam Maher of the Clean Clothes Campaign. “This is totally unacceptable.”

    Further information on the Accord on Fire and Building Safety in Bangladesh can be read here.

  • Downturn won’t dent H&M China confidence

    Downturn won’t dent H&M China confidence

    Despite feeling the pinch from an economic slowdown in China, Swedish fashion giant Hennes & Mauritz (H&M) says it plans to continue to bet big on the country.

    It blames an 11 per cent drop in quarterly net profit on adverse currency swings and mild November weather across several divisions, especially H&M China.

    This fell to 5.53 billion Swedish kronor (US$649 million) for the three months to November 30 from 6.22 billion kronor for the same period a year earlier. Revenue grew 14 per cent to 56.5 billion kronor in the fiscal quarter from 49.7 billion kronor. Excluding value-added tax, sales totaled 48.7 billion kronor.

    While acknowledging that sales growth in China has slowed dramatically – coming in a 4 per cent in local currencies for the quarter compared with 34 per cent – CEO Karl-Johan Persson says his faith in the country’s long-term prospect is unshaken.

    “We will open most new stores in China this year,” he says. The company plans 425 new stores globally in the fiscal year, with China and the US its main expansion markets.

    Persson says his confidence in China is based on the belief that the country will gradually pivot toward a consumer-driven economy, creating vast opportunities for retailers.

    Affluent shoppers 35 years and younger as well as internet users are still propelling the consumer market there, which is expected to jump to $6.5 trillion in sales by 2020, an increase of 54 per cent from last year, according to the Boston Consulting Group.

    H&M also plans to continue online expansion, with plans to open online stores in Japan and in eight other markets this year.

    The group’s gross margin has slipped to 57.5 per cent from 60.4 per cent, mainly because of the stronger dollar. H&M sources most of its clothes in Asia, where it pays in dollars.

  • H&M expected to account for 10 per cent of Hang Lung Properties

    H&M expected to account for 10 per cent of Hang Lung Properties

    Fast fashion chain H&M is estimated to contribute 10 per cent of Hang Lung Properties’ rental income in Hong Kong this year but the developer faces a decline in retail rents in the mainland.

    The US investment bank estimated the developer’s rental income in Hong Kong would edge up 4 per cent to HK$3.7 billion this year.

    H&M alone would boost Hang Lung Hong Kong rental income by 3 per cent, it said.

    The Swedish fast fashion chain opened two outlets at two shopping malls owned by Hang Lung Properties in three months.

    The chain opened its largest flagship store in Asia, with shop area of 47,000 square feet, at Hang Lung Centre in Causeway Bay at a monthly rent of HK$11 million, or HK$213 per square foot in early November, according to market sources.

    The chain also opened a 55,000 square feet shop at Gala Plaza in Mong Kok in January at an estimated monthly rent of HK$9 million, or HK$194 per sq ft, people familiar with the deal say.

    However, the developer, which owns eight shopping malls on the mainland, would see its retail rental on the mainland fall 7.3 per cent from last year to HK$3.88 billion this year, Morgan Stanley said. It owns shopping malls in Shanghai, Shenyang, Wuxi, Dalian, Tianjin and Jinan.

    Morgan Stanley attributed the fall in mainland rental income to negative rental reversions in second-tier malls and said renovation of Hang Lung’s two Shanghai malls could affect sales.

    In Shanghai, renovation at Plaza 66 started in September and is scheduled for completion by mid-2017, while Grand Gateway 66 will start refurbishment later this year.

    “The two Shanghai malls accounted for 50 per cent of mainland rental income in the financial year 2015,” Morgan Stanley said in a report.

    No new mall opening until 2018 would also affect short-term revenues and earings per share growth.

    The next mall due to open will be Spring City 66 in Kunming, which is scheduled for completion in 2018.

    In addition, rental income at Forum 66 in Shenyang fell 21 per cent year on year in the second half of 2015 and Center 66 Wuxi registered a fall of 37 per cent.

    Both malls saw negative rental reversion and retail sales declined 3 per cent year on year , it said.

    Morgan Stanley said it expected Hang Lung Properties’ core earnings would fall 6.6 per cent to HK$4.09 billion this year.

  • H&M Conscious Foundation 2015 Gift Card Holiday campaign raised 4,9 million

    H&M Conscious Foundation 2015 Gift Card Holiday campaign raised 4,9 million

    The Gift Card Holiday campaign 2015 is now completed and thanks to our customers, the donation amounted to a total of €4,9 million! This donation from the H&M Conscious Foundation will go to a program run by UNICEF and will benefit 480,000 marginalized and vulnerable children, aged 5-14 in Myanmar. These children will get increased access to school and improved quality of education.

    “This fantastic result would never have been achieved without the substantial engagement of H&M customers! Through a simple mean; the purchase of a gift card, we will be able to give 480,000 vulnerable children a better future. It shows that small means certainly can take you far!”, says Diana Amini, Global Manager of H&M Conscious Foundation.

    The program includes children in formal schooling, children living in camps for internally displaced people and children who will be reached through non-formal education initiatives. UNICEF will work on multiple levels to influence changes in policy, in education management and in schools and communities. Children, parents, teachers, head masters and policy makers will be involved in creating better schools for children.