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Tag: h&m

  • H&M Hong Kong plans new flagship

    H&M Hong Kong plans new flagship

    A newly built full-concept flagship store for H&M (Hennes & Mauritz) will officially open in Mongkok on January 29.

    The new H&M Hong Kong store spans three floors at Gala Place, a shopping destination known for young and trendy fashion. It will be the largest H&M store in Kowloon, offering a wide range of items for women, men, teenagers and children, as well as a home collection featuring Scandinavian designed bed linen, tableware, cushions and decorations.

    It is the second H&M home store for Hong Kong, and its LED facade will echo the neon lights of Mongkok.

    On its grand opening day, the first 100 customers in line will be rewarded with $100 gift cards and a limited-edition giveaway. Shopping hours will be extended until midnight, with normal hours (11am to 11pm) resuming from February 1.

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  • H&M India plans largest store yet

    H&M India plans largest store yet

    H&M India says it will soon open its first flagship store in the country – its largest yet.

    The new shop is under construction at the DLF Mall of India, the company said in a statement. It will comprise 37,000 sqft (3440 sqm) spanning four floors in the mall, and is expected to open in Spring.

    This year, the Swedish retailer also plans to open stores in Bengaluru, Gurgaon and Mumbai.

    H&M opened its first store in India on October 2  last year in New Delhi’s Select Citywalk mall.

    “After successful store launches last year, we continue the trend by expanding to some of the most exciting retail destinations across the country with H&M’s business concept of fashion and quality at the best price in a sustainable way.” said Janne Einola, country manager, H&M India.

    The company says it plans to open 50 stores in India after  gaining Foreign Investment Promotion Board approval to open mono brand stores in december 2013.

  • H&M blames weather for poor sales growth

    H&M blames weather for poor sales growth

    Hennes & Mauritz, the world’s second-largest apparel retailer, has reported a four per cent rise in sales in November.

    H&M says the increase was lower than expected due to unusually mild weather in the northern hemisphere, which lessened customer demand for winter clothing.

    Analysts are growing increasingly concerned about H&M’s margins, fearing they will come under pressure if stock has to be discounted to move inventory.

    Inditex, the world’s largest apparel retailer, last week reported sales in local currency terms increased 15 per cent in November, despite the weather.

    H&M’s net sales in September through November, the company’s fiscal fourth quarter, totalled 48.7 billion Swedish crowns (£3.83 billion), up from a year-ago 42.6 billion but below the mean forecast of 49.6 billion.

    Year on year, H&M has added 413 new stores, taking its global network to 3924.

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  • Bangkok retail market to increase more than 1 million sq.m.

    Bangkok retail market to increase more than 1 million sq.m.

    The entry of new local and international retailers, combined with a challenging economic outlook and weak consumer sentiment is all adding up to the mix.
    Despite a slowdown in retail sales, there is currently 1.1 million sq.m. of retail space under construction in Bangkok, which will bring the total completed supply in 2017 close to 8 million sq.m.
    Within the CBD, the latest major retail developments to open are EmQuartier and Central Embassy, intensifying competition for existing malls such as Siam Paragon, Gaysorn and CentralWorld.

    In addition, big developers continue to renovate their downtown retail centres such as Siam Discovery and MBK.

    Bangkok retail market, EmQuatier
    As the major retail centres are chasing after the same group of consumers, retail events and promotions have become ubiquitous

    As the major retail centres are chasing after the same group of consumers, retail events and promotions have  become ubiquitous leading to a cut-throat competition and heighted promotion campaigns, particularly gearing up to the festive season where consumer spending typically peaks.

    The expansion by major retail developers to suburban areas may also in part draw consumers away from CBD malls, although the impact may be limited.

    Bangkok’s suburban areas today are well served by quality retail centres, reducing the need for consumers to travel into the CBD.

    To the North, Zpell@Future Park has just opened on 27th November. Opened on the same day in Eastern Bangkok on Ekamai-Ram Intra is Central EastVille, adding competition to existing malls in the area such as Crystal Park and Crystal Design Centre.

    The Mall Group is also currently planning The Bangkok Mall on Bangna-Trad which is expected to be completed in 2017. To the West, CentralPlaza WestGate recently opened in August in the Bang Yai area, adding a major retail centre to an area where there have been limited retail developments.

    The Riverside will also get its own luxury shopping complex in 2017 with the opening of IconSiam which will comprise a 500,000 sq.m. retail and entertainment complex, part of which includes a 36,000 sq.m. 7-floor Takashimaya department store from Japan which will be Thailand’s first.Amidst this competition, the segment that will find most challenging is community malls.

    Community malls will be forced to adjust their strategies and have clear unique selling points and propositions to draw in consumers; otherwise they are likely to be overshadowed by major retail developments that have a bigger events and promotions budget.

    It is essential for community mall developers to understand their target consumers’ needs and retain anchor tenants in order to compete in the long-term.

    The plus side of the retail expansion is that it will create room for both domestic and international retailers to expand to suburban areas.

    International fashion brands such as H&M, Uniqlo, Aldo and Charles & Keith have already expanded to CentralPlaza WestGate.

  • Swedish fashion brand, H&M makes Cebu debut

    Swedish fashion brand, H&M makes Cebu debut

    SWEDISH retail brand H&M (Hennes & Mauritz) is opening its doors to Cebuano shoppers at the Ayala Center Cebu today. Top officials are confident the brand, which was long clamored for by Filipinos to enter the Philippine market, will get a positive reception among Cebuanos similar to long queues experienced during its opening day in Manila last year.

    H&M Cebu is the biggest H&M store in the Philippines to date. The store covers three floors that occupy 3,800 square meters of Ayala Center Cebu’s leasable space.

    “We are just so happy we are given this huge space for our first store in Cebu. We are very well received in the Philippines with the long queues and sold-out collections, which is really amazing. I trust we will get the same vibrance in Cebu,” said Fredrik Famm, H&M country manager for Southeast Asia, in an interview Wednesday. According to the press release, the first 300 customers in line will receive gift cards valued as high as P5,000 and opening offers that are up to 50 percent off.

    H&M Cebu is the 11th store in the country. By year end, the retail brand will have a total of 12 stores nationwide, the latest will be the second H&M store in Cebu at SM Seaside City in South Road Properties, which will open on Dec. 9. Famm sees the Philippines as a destination where there is much growth potential, citing its mature retail market reflected by the increasing number of commercial establishments being put up in key cities like Cebu.

    The country’s over 100 million consumers and well-travelled population, he added, also presents opportunities for international retail brands to thrive.

    A report obtained from the Philippine Retailers Association noted that as of the first quarter this year, consumer spending in the country hit an all-time high of P1.278 trillion from P1.259 trillion in the last quarter of 2014. For the month of May, 2015 alone, the report said that retail sales increased 1.5 percent over the same month last year. Consumer spending in the Philippines averaged P875.888 billion since 1998 up to January 2015. It also added that the country posted a record low of P581.662 billion in sales in the first quarter of 1998.

    H&M Ayala Center is a full concept store carrying ladies wear, mens wear, kids clothing and home accessories. Famm said the brand is a “combination of fashion, quality, price and sustainability.”

    “Every person who’s got an interest in fashion is our customer. Regardless of your personality, you will find something in our stores,” said Famm. More than just brining in high-quality and value for money fashion items, H&M will also introduce its Garment Collecting initiative in Cebu, were customers can donate their used clothes and get discount voucher at 15 percent to use for their next purchase.

    Famm said this initiative, which is implemented through its partner, I:Collect, a global recycling company, is the company’s way of protecting and preserving the environment.

    H&M is said to be the first fashion company to launch a global collection initiative. This initiative, Famm said, “can help reduce waste at the same time give old and worn out garments a new life.”

    “Of the thousand tons of textiles that people throw away every where, as much as 95 percent could be reworn or recycled,” the firm said in its website.

    “Of the used clothes, many things can still be redone. Like, can reuse it and turn them into other products like car seats and other purposes; we can also recycle by turning these old textiles to new fibers,” said Famm.

    This global initiative is being implemented all over H&M’s 3,900 stores worldwide. It has so far collected a total of 7,600 tons of used clothing or 38 million pieces of clothes. Last December, H&M collected 20 tons of used clothing in the Philippines. According to Famm, consumers’ interest on goods made out of sustainable processes is gaining popularity.

    “For H&M, this is a growing part in our production,” he said, adding that the retail brand is also one of the largest buyers of organic cotton in the world from suppliers who also adopt sustainable processes in their own operations. “In many markets, we get high demand of this type from our customers.” H&M products, which are made from sustainable materials, are identified in competitive green price tags.

    After Cebu, the officials are keen on looking at other interesting cities in the Philippines where they can set-up more H&M stores.

    “We see a lot of potential in all major cities in the country. We are looking for appropriate locations. We are kind of picky on that, but we want to be in areas where our customers are,” said Famm.

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  • Fashion brands targeted in Cambodian minimum wage push

    Fashion brands targeted in Cambodian minimum wage push

    Lobby group the Clean Clothes Campaign aims to shame the world’s large fashion brands into supporting a Cambodian minimum wage rise.

    The CCC says it is lobbying on behalf of a coalition of Cambodian unions that the multinational brands must ensure a minimum wage of US $177. Thousands of women and men in Cambodia and around the world, have worn stickers saying “brands must provide a living wage for workers!” in factories which produce apparel for major global brands such as H&M, Inditex, Levi’s and Gap.

    The campaign is co-ordinating ongoing action in Asia, the US and Europe.

    In October, the Labour Advisory Council (LAC), a tripartite wage-setting body, voted to approve a new minimum wage of $140, to be implemented in January 2016 for Cambodia’s 700,000 garment workers, despite objections from a number of unions.

    “This insufficient $12 wage increase is a slap in the face to workers who have been organising for over a year to demand a fair minimum wage of $177,” said the CCC.

    A coalition of Cambodian unions are joining together to demand that the brands immediately ensure a minimum wage of US $177 is paid in their Cambodian suppliers and negotiate directly with Cambodian unions a binding agreement to achieve living wages, decent purchasing practices, stable employment, and union rights for the long-term.

    “Some brands, such as H&M and Adidas, have made public statements that they support a living wage for workers in their supply chains. However, these assertions ring hollow to workers who often work excessive overtime and still cannot provide for the basic needs of themselves and their families.”

    Athit Kong, VP of C.CAWDU, an independent union in Cambodia, says the $12 increase does not reflect the real basic needs of the workers, “especially in light of the enormous profits of multinational brands”.

    “It is clear that the only solution to poverty wages in the garment industry is genuine collective bargaining between brands, as the principal employers, and the garment unions.”

    A Global Action Day is planned for December 10, International Human Rights Day. Workers and campaigners from all over the world will show support to the Cambodian workers with workplace actions, fashion mobs, catwalks, and other store actions.

    Mirjam van Heugten from CCC, says brands sourcing from Cambodia cannot expect the women and men working in their factories to accept “these bread crumbs”.

    “The workers effectively slave themselves at factories, only for the brands to make huge profits. The targeted brands such as H&M and Inditex must put their leadership claims into practice by making sure all garment workers receive a living wage.”

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  • Mango stops partnership JC Penney

    Mango stops partnership JC Penney

    Spanish fast fashion retailer Mango is to close 450 points of sale in the US after deciding not to renew a partnership agreement with department store JC Penney.

    The two companies had a five year contract where Mango operated concessions in 450 of the department stores, but they collectively account for just 0.5 per cent of the label’s global sales.

    The stores will close in February, leaving Mango with just seven stand alone stores in the US.

    But a spokesman for the company said it would not be exiting the US market. Instead it will look to open more of its own stores over time, in selected key cities such as New York and Miami.

    Privately-owned Mango is struggling to hold its own against its larger rivals, fellow Spanish brand Zara and Swedish label H&M, internationally, despite a presence in 100 countries. Its profit fell 11 per cent last year.

  • Sweden’s H&M opens doors in Sydney

    Sweden’s H&M opens doors in Sydney

    An artist’s impression of the H&M store in Pitt Street Mall’s Glasshouse building.

    The opening of Swedish fast fashion giant H&M Australia’s store this weekend in Sydney’s Pitt Street Mall will boost revenue for city retail landlords, agents says.

    It follows Forever 21, Zara and Uniqlo onto the strip. They were the first major international brands to put the area on the global map.

    CBRE said that with openings or leases secured on more than 30 new stores, the pace of first-time international brand entrants and expansion in Australia continued unabated.

    This compares with more than 35 new openings and lease deals for 2014, CBRE’s third-quarter 2015 Retail MarketView​ shows.

    CBRE’s senior research manager, Danny Lee, said Sydney and Melbourne had had the highest activity in 2015, followed by Brisbane and Perth.

    “Foreign brand penetration in Australia is fairly low in comparison to other countries at 28 per cent, which is a key attraction for these offshore retailers,” Mr Lee said.

    “It would take an additional 50 brands to enter the market to reach the same level as some Asian countries, such as Singapore and Hong Kong, with 90 more required to reach the UK’s level of 57 per cent.”

    CBRE’s head of retail tenant representation Australia, Tim Starling, said the low penetration rate in Australia served to minimise competition between foreign brands.

    “Other key attractions for foreign retailers include the fact that Australia is one of the highest-consuming developed nations, with consumption per capita growing at twice the rate of the US between 2008 and 2014,” Mr Starling said.

    CBRE’s head of retail brokerage leasing Australia, Leif Olson, said the impact on the market would also mean that super prime rents would grow by a forecast 4 per cent per annum over the next three years

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  • In Singapore, queue for Balmain x H&M launch starts 3 days early

    In Singapore, queue for Balmain x H&M launch starts 3 days early

    The queue to get into H&M’s flagship outlet at Orchard Building for first dibs of the Balmain x H&M collection started on Monday (Nov 2), three days before the actual launch on Thursday.

    There were nine people at the outlet just before midnight on Tuesday, many of whom were students holding their group’s place in the queue. First in line was 21-year-old Neo Jin Han, whose friend had started the queue at about 6.30pm on Monday evening.

    “(My friend) will take over at 8am tomorrow. After that we will wait out the night together until the launch,” said Mr Neo. He said that he was queueing as the collection was a way they could own something from the French label without having to part with large amounts of money.

    Another in line on Tuesday night was 25-year-old student Pei Wen, who was spending her time working on a school assignment.

    She told Channel NewsAsia she was aiming for an embellished dress and T-shirts, despite being let down by some of the T-shirt designs.

    “(The T-shirt collection) is quite disappointing,” she said. “The shirts have ‘Balmain Asia’ on them and Balmain is a French company. I think they were just trying to make it unique to this region.”

    Mr Neo begged to differ: “The T-shirts are what everybody wants.”

    The 109-piece collection, with tops starting from S$59.90 and dresses ranging from S$119 to S$899 a piece, will go on sale from 8am on Thursday. They will be available at the Swedish brand’s Singapore flagship store at Orchard Building, and its ION Orchard outlet.

    Despite it being understood that no queueing is allowed inside ION Orchard beyond the mall’s retail hours, a spokesperson for H&M said a queue has begun to form for the collection there as well.

    “During all our designer collaboration launches, we always have a systematic queue system with trained security guards and experienced store staff on standby to ensure the safety of all our customers,” said the spokesperson. “Queue poles will be set up once the first customer starts queueing.”

    The spokesperson added: “We worked closely with the management team of ION Orchard to ensure that the queue will be managed well and should customers choose to queue overnight, the same arrangements will be made.”

    According to the H&M app, purchases are limited to a maximum of one piece of each item per person to allow everyone to shop the new collection. It also stated that every group of 30 customers will be given a different coloured bracelet to determine when they will be allowed into the store. Each group only gets 10 minutes in the “shop-in-shop” area where the collection is displayed.

    “The allocated 10 minutes is implemented so that we can manage the crowd better, maintain fairness and shorten queue duration,” said the spokesperson. “The 10-minute window doesn’t include trying on of clothes and shoes as customers can do that at their own time when they exit the area.”

    According to H&M, more than 600 customers were in the line when the Alexander Wang x H&M collection opened last year.

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  • Western retail giants restrict travel to Bangladesh after attacks

    Western retail giants restrict travel to Bangladesh after attacks

    Business executives from global clothing giants H&M Inditex and Gap have canceled trips to Dhaka this month after the killings of two foreigners, industry sources said, causing anxiety for Bangladesh’s $25 billion garment export sector.

    Bangladeshi suppliers to the world’s top brands said they didn’t expect the disruptions to hurt their orders for the year-end Christmas season.

    But the attacks, claimed by the Islamic State, increase the pressure on an industry which faces competition from other low-wage countries and is trying to repair its safety image after several fatal accidents.

    The United States and Canada have asked their diplomats to restrict their movements, and Britain warned of more attacks after an Italian aid worker and a Japanese man were shot dead a few days apart. Australia canceled a cricket tour.

    Bangladesh’s government, however, rejected the claim by the Islamic State and blamed the growing violence in the country on its domestic political opponents trying to show it in poor light. The attacks on foreigners, while rare, follow the killings of four Bangladeshi bloggers this year by machete-wielding assailants, and have spawned fear among the foreign community.

    “Our Western buyers panicked after the killing of the two foreigners within five days. Some buyers canceled their visits during this peak time when they are supposed to place more orders,” said Siddiqur Rahman, chief of the Bangladesh Garment Manufacturers and Exporters Association.

    Shahidullah Azim, a garment exporter who supplies to Sears, Loblaws and Perry Ellis among others said one of his buyers asked him to come to Dubai instead, along with the clothing samples.

    Other foreign business executives asked for video conferences with their Bangladeshi counterparts, saying they couldn’t travel to Dhaka because of the warnings issued by their governments.

    “We are monitoring the situation in Bangladesh closely and we are taking the appropriate security measures. We are also in close dialogue with other brands regarding the situation,” H&M spokeswoman Anna Eriksson said.

    Marks & Spencer said the firm stopped travel to Bangladesh for seven days a few weeks ago. Travel has since resumed, a spokeswoman said, and added there was no impact on business orders.

    Gap declined to comment on a change in its travel plans. Tesco said it had not stopped business travel to Bangladesh, but had asked its employees to be vigilant and consider their movements carefully.

    MASKED MEN ON BIKES

    Bangladesh has deployed paramilitary soldiers on nighttime patrols in the diplomatic quarter of Dhaka and issued a nationwide ban on people riding pillion after the two attacks were carried out by masked men riding bikes.

    Home Minister Asaduzzaman Khan, who has dismissed claims that the Islamic State was operating in the Muslim majority country of 160 million, said on Wednesday that police were close to a breakthrough on the killings.

    “We have taken these attacks very seriously. We won’t spare the killers,” he said.

    Prime Minister Sheikh Hasina has blamed the rising tide of violence on the opposition Bangladesh Nationalist Party and its key ally, Jamaat-e-Islami, many of whose leaders are being prosecuted for war crimes during the 1971 war of independence.

    The opposition denies any involvement.

    A Dhaka-based garment manufacturer said the government had increased security in the area where foreigners lived, police had spoken to them and confidence was returning. Business was strong, but if there is another attack on a foreigner, it could hurt the sector.

    Azim warned of an even broader impact. “If this Islamic State issue persists for long it will not only hurt our businesses, it will destroy the country’s image,” he said. “The government should act promptly to bring the perpetrators to justice and let the world know that Bangladesh is safe.”

    The readymade garments industry is the economic lifeblood of the country, employing around 4 million people, most of them women. It is in the midst of a massive safety overhaul after the collapse of the Rana Plaza in 2013 in which more than 1,100 workers were killed and exposed the unsafe working conditions.

    In recent years, Bangladesh has also faced competition from Vietnam, Cambodia and Myanmar, although its wages remain low.

     

  • H&M Hong Kong flagship to be Asia’s largest

    H&M Hong Kong flagship to be Asia’s largest

    The new H&M Hong Kong flagship store set to open on October 30 will be the Swedish fashion brand’s largest yet in Asia.

    Hennes & Mauritz will open at the end of the month in Hong Kong, marking the fast fashion brand’s return to what is one of the city’s premiere downtown shopping district.

    The 47,000 sqm store will open at Fashion Walk in Causeway Bay.

    It will include an H&M Home section, marking the homewares spin-off’s first presence in Hong Kong. A highlight will be a global exclusive collection by Ximon Lee, winner of H&M’s Design Award 2015.

    H&M is steadily expanding its store network in Asia. On October 1 it opened a new store in Singapore’s Tampines shopping centre, a two storey shop with a floorspace of about 19,500 sqft.

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  • H&M backs China, India

    H&M backs China, India

    Sweden’s H&M has followed in the footsteps of archrival Uniqlo in voicing its confidence in the China market despite the economic slowdown.

    Like Uniqlo H&M is aimed at the mass market, not the high end luxury sector most hit by the tightened spending of Chinese consumers.

    H&M says it will open 70 stores in China in the year to November 30, taking its network up to just over 300.

    Like Uniqlo, the company says it sees itself appealing to cost-conscious shoppers.

    In an interview in Hong Kong on Monday, H&M country manager for Greater China, Magnus Olsson, said the brand’s customers say they enjoy spending with H&M and they plan to shop more in future.

    “Those signs we think override some other maybe noise in the marketplace right now. We’re humble but confident.”

    H&M will open its largest store yet in Asia in Causeway Bay, Hong Kong, on October 30.

    H&M group’s sales in the nine months to August rose 22 per cent globally; expressed in local currency, by 12 per cent.

    In the fourth quarter of this year H&M plans to open about 240 new stores – almost three per day.

    It will enter India and South Africa this autumn, with maiden stores in New Delhi this week and in Cape Town in October.

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  • New Disney park in China to bolster sales, Uniqlo chief says

    New Disney park in China to bolster sales, Uniqlo chief says

    Fast Retailing Co. Chairman Tadashi Yanai said Walt Disney Co.’s new park in Shanghai will help his Uniqlo casual clothing brand expand in China, shrugging off concerns over an economic slowdown in the Japanese retailer’s largest overseas market.

    “The opening of the Shanghai Disneyland gives both of us, Uniqlo and Disney, a business opportunity,” Chairman Tadashi Yanai told reporters in Shanghai, where Uniqlo will open a new Disney-inspired concept store. “Our business is getting absolutely no impact” from China’s slowdown, he said.

    Starting Sunday, Uniqlo will devote an entire floor at its six-story China flagship store in central Shanghai to products jointly designed with Disney. A human-sized Mickey Mouse statue greets visitors to the store, where T-shirts and toys depicting characters such as Tinker Bell, Woody of Disney Pixar’s “Toy Story” animated films, and Darth Vader from the Star Wars movies are on display.

    Japan’s richest person, Yanai plans to open 100 stores a year in China as Uniqlo competes with Hennes & Mauritz AB’s H&M and Inditex SA’s Zara to win over consumers in the world’s most populous country. The retailer’s design tie-up comes as Disney prepares to open its $5.5 billion Shanghai theme park next year, its biggest foreign investment and a bet on the country’s booming middle class.

    The Disney collaboration should help Uniqlo boost sales in China “as buzz builds around the opening of Shanghai Disneyland,” said Bloomberg Intelligence retail analyst Thomas Jastrzab. “Expanding store-specific limited edition merchandise offerings should help Uniqlo increase regular foot traffic and improve customer loyalty.”

    Fast Retailing rose 3.3 percent to ¥46,800 ($388.09) at the close of trading in Tokyo on Friday. The shares are up by 6.3 percent so far this year, compared with the 3.3 percent gain in the benchmark Topix index.

    Uniqlo has about 360 stores in mainland China, the most in any country outside Japan, where it has almost 850 shops. The company plans to expand its Greater China network, including mainland China, Hong Kong and Taiwan, to 1,000 outlets.

    China is a key market for Fast Retailing as Yanai attempts to turn Asia’s biggest clothing retailer into the world leader, with a target of ¥5 trillion in sales by 2020 from its forecast of ¥1.65 trillion for the fiscal year ended Aug. 31.

    Yanai said demand for Uniqlo products will increase amid an economic slowdown in China. Everyday clothes with basic designs and advanced materials that Uniqlo sells at affordable prices fit well as China shifts its focus to consumer purchasing from manufacturing, he said.

    “An economic slowdown in China could boost Uniqlo’s sales, particularly as shoppers increasingly look for value-for-money when purchasing clothing essentials such as T-shirts and pants,” Jastrzab said.

    China’s apparel and footwear market is highly fragmented, with market leader Bestseller AS, owner of brands such as Jack & Jones and Vera Moda, holding a 1.7 percent market share by value in 2014, according to Euromonitor International. Uniqlo ranks eighth with 0.6 percent, while Inditex is ninth with 0.5 percent and H&M is out of the top 10 with 0.4 percent.

    “Our concept of manufacturing is fundamentally different and unique,” said Yanai. “We don’t chase trends, but we would rather want to incorporate fashion into our basic clothes.”

  • H&M plans to open another 240 stores by end of the year

    H&M plans to open another 240 stores by end of the year

    Hennes & Mautitz AB (H&M), Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children plans to open an additional 240 new stores this year. In the third quarter, H&M opened 36 new stores, but in the fourth quarter 240 new stores are scheduled to open, most of which will be in China and the US. H&M already has 299 locations in China, but growth in the country’s apparel industry makes it a promising hotbed for retailers.

    China, in particular, will account for much of the expected growth, encompassing almost one-third of regional demand for clothing by 2018. As the Asian clothing and apparel sector is expected to grow rapidly over the next five years. Annual average expenditure growth on clothing and footwear, at 9.5%, will comfortably outstrip that of any other region, said PricewaterhouseCooper’s retail consultants in their 2015-2016 outlook report on the retail and consumer products sector in Asia.

    Beyond its traditional flagship brand, H&M also owns premium brand Cos. The company hopes to introduce Cos in China as well, catering to the country’s growing upper-middle class.

    Cheap prices and a continuous supply of new looks keep customers coming back to chains like H&M and Zara. And according to Ms. Paula Rosenblum, Forbe’s retail analyst. H&M’s success comes amid a growing demand for fast fashion.

    But despite fast fashion’s growth, chains including H&M are increasingly facing criticism over both environmental and social justice concerns.

    Though fast fashion offers consumers a wider variety of styles, the rising trend has also been tied to growing amounts of textiles in landfills. In the US alone, clothing, footware, and other non-durable textiles generated 12.4 million tons of landfill waste in 2013. Only about 15 percent, or 1.8 million tons of the textile waste was recovered for reprocessing or recycling, reported the US Environmental Protection Agency.

    Furthermore, many fast fashion retailers rely on cheap labor to produce high quantities of their products. Many laborers used to come from China, but with rising wage demands, companies have looked to Taiwan, Indonesia, Vietnam, and Bangladesh, among other southeast Asian countries instead.

    According to Bloomberg Business, H&M has seen significant growth this year, second only to the Spanish clothing retailer Zara in size. Third-quarter sales grew 16 percent, surging to nearly 46 billion Swedish kronor, with revenue coming in at 39 billion kronor.

     

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  • H&M positive to the uniform minimum wage set in Myanmar

    H&M positive to the uniform minimum wage set in Myanmar

    At H&M, It is positive to the uniform minimum wage that has been set by the Government. A uniform minimum wage across all industries is essential for the sustainable economic development not only for the textile industry but also for the country as a whole.

    H&M also believes that the minimum wage should be reconsidered through an annual review mechanism, which is inclusive of key stakeholders. It aims at laying the foundation for a vibrant tripartite industrial relation and wage level negotiations process based on transparency, inclusiveness and peaceful negotiation.

    The above has been addressed in two joint letters to the Government of Myanmar. H&M has also met with the Ministry of Labor and expressed the expectations about setting minimum wage levels and annual review mechanisms to ensure that workers receive a fair wage.

    H&M’s role is to contribute to a working environment in the factories where a skilled workforce has their wages annually reviewed and negotiated. It is believed that meaningful collective bargaining is very important and are looking at ways to strengthen it. Workers’ ability to organise and negotiate about their rights is key to improve working conditions. That is why   industrial relations has set as one of our main sustainability focus and will launch a project to strengthen industrial relations in Myanmar in 2015.

     

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