Tag: h&m

  • Fashion giant H&M’s sales recover in March as stores reopen after lockdowns

    Fashion giant H&M’s sales recover in March as stores reopen after lockdowns

    Sales at fashion group H&M fell slightly less than expected in the three months through February and rose in the first half of March as pandemic restrictions were eased in some markets, allowing hundreds of stores to reopen.

    The world’s second-biggest apparel retailer said on Monday net sales fell 27% from a year earlier, or 21% when measured in local currencies, to 40.1 billion crowns ($4.72 billion).

    Analysts had on average forecast a 30% decline in net sales for the period – the Swedish group’s fiscal first-quarter – according to Refinitiv SmartEstimate.

    “Sales development was significantly affected by the COVID-19 situation, with extensive restrictions and at most over 1,800 stores temporarily closed,” H&M said in a statement.

    “Since the beginning of February, a number of markets have gradually allowed stores to reopen and at the end of the quarter around 1,300 stores remained temporarily closed,” it said, adding that online sales had continued to develop very well.

    RBC analyst Richard Chamberlain, who has a “sector perform” rating on H&M’s shares, said the figures implied that online sales had provided a stronger-than-expected boost in February.

    H&M said sales in the March 1–13 period were up 10% in local currencies as many countries, including single-biggest market Germany, began allowing some stores to reopen. However, about 900 of H&M’s approximately 5,000 stores remained closed due to pandemic lockdowns as of March 13.

    Chamberlain said most stores should be open by mid-April bar new lockdowns in Europe, H&M’s main market.

    “As such, we see the potential for a strong sales recovery in the remainder of the year, with potential for gross margin to surprise on the upside, due to the weaker U.S. dollar,” he said.

    Market leader Inditex, the owner of Zara, last week forecast a return to healthy sales as soon as lockdown are lifted, as it reported a 70% fall in profit for its fiscal year through January. It predicted all its shops would be open by mid-April.

    H&M, whose full December-February earnings report is due on March 31, is bracing for a loss in the quarter after the pandemic slashed 2020 profits by 88%.

    Shares in H&M were up 3% in early trading, taking a year-to-date rise to 32%

  • Fashion giant H&M pauses placing new orders in Myanmar

    Fashion giant H&M pauses placing new orders in Myanmar

    Sweden’s H&M, the world’s second-biggest fashion retailer, said on Monday it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country.

    Police and military have killed more than 50 people to quell daily demonstrations and strikes against a Feb. 1 military coup, according to the United Nations last week.

    H&M has around 45 direct suppliers in Myanmar, it said on its website, and has sourced in the country for seven years.

    “Although we refrain from taking any immediate action regarding our long-term presence in the country, we have at this point paused placing new orders with our suppliers,” Serkan Tanka, Country Manager Myanmar, said in an email.

    “This is due to practical difficulties and an unpredictable situation limiting our ability to operate in the country, including challenges related to manufacturing and infrastructure, raw material imports, and transport of finished goods.”

    Two protesters were killed by gunshot wounds to the head in Myanmar on Monday, witnesses said, while shops, factories and banks were closed in the main city Yangon as part of the uprising against the country’s military rulers.

    Tanka said H&M was extremely concerned about the situation in the country and that it was in dialogue with UN agencies, diplomatic representatives, human rights experts, trade unions, and other multinational companies.

    “These consultations will guide us in any future decision in relation to how we as a company can best contribute to positive developments in accordance with the will of the people in Myanmar,” he said.

    Myanmar’s garment industry is smaller than that of neighboring countries Bangladesh, China and Thailand. However, its around 600 factories are significant employers, providing jobs for around 450,000 workers in 2020, according to the Myanmar Garment Manufacturers Association.

  • H&M’s full year profit slides despite positive growth in online sales

    H&M’s full year profit slides despite positive growth in online sales

    Hennes & Mauritz released stronger-than-expected fourth-quarter results on Friday but flagged ongoing challenges in trading conditions, with more than 1,000 stores temporarily closed.

    “The ongoing restrictions along with the many temporary store closures will have a substantial negative impact on the first quarter,” said chief executive officer Helena Helmersson, speaking on a phone call with analysts to discuss the company’s full-year performance.

    The company said 36 percent of its sprawling retail network is temporarily closed, or 1,800 stores. Sales in the Dec. 1 to Jan. 27 period were down 23 percent in local currencies compared with the same period last year.

    The company posted a profit of 2.48 billion Swedish kronor, or $300 million, in the fourth quarter, from Sept. 1 to Nov. 30, and executives touted a strong financial position at the end of the year.

    “With strong, profitable online growth and good cost control we succeeded in ending the year in profit and with a strong financial position,” Helmersson said.

    Analysts said fourth-quarter results were better than expected thanks to lower operational expenditure than forecast but noted the sales update was weaker than expected.

    “Recent trading is in line with our fairly cautious estimate,” said Richard Chamberlain of RBC, noting the outlook was “tough.”

  • Arket bound to open its first retail store in China this autumn

    Arket bound to open its first retail store in China this autumn

    H&M-owned Arket has announced plans to open its first physical store in China this autumn.

    The flagship store will be located in Beijing and will stock a mix of the Stockholm-based brand’s wardrobe staples and seasonal fashion drops for both women and men.

    The store will also feature an Arket cafe and stock an assortment of beauty and home items.

    “We are incredibly happy to announce our upcoming opening in Beijing and we are looking forward to finally meeting our many Chinese customers in person,” said Arket managing director Pernilla Wohlfahrt in a statement.

    “The new store gives us an opportunity to welcome people into our world and invite them to experience the rich diversity of our collections – from beautifully-made fabrics and fashion designs to nature-inspired interiors, sustainable childrenswear and contemporary Swedish cuisine.”

    The physical store is the latest step of the Nordic band’s expansion into Asia. The company made its debut into the Chinese market in August with the launch of its digital flagship store on Alibaba Group’s B2C e-commerce platform Tmall.

    In late 2020 the brand also announced plans to open its first store in South Korea early this year.

  • H&M sales dampened by second Covid-19 wave

    H&M sales dampened by second Covid-19 wave

    H&M said its net sales were down by 10% year-on-year in the fourth quarter, as a direct result of the coronavirus pandemic’s second wave. Shares ticked 0.14% lower on Tuesday morning in Stockholm.

    The world’s second-largest global clothing retailer said the first wave of the pandemic hit it the hardest, impacting its Q2 results due to “extensive social restrictions involving temporary store closures and large drops in customer footfall to physical stores.”

    It managed to gain some momentum in the third quarter, but “the recovery transitioned into a new slowdown as a result of the pandemic’s second wave.”

    For the 2020 financial year, net sales decreased by 18%.

    The group’s net sales were 52.5bn Swedish crowns ($6.2bn, £4.7bn) in Q4, down from 61.7bn Swedish crowns a year earlier.

    Its full-year report for the 2020 financial year will be published 29 January 2021.

    Meanwhile, rival Inditex, owner of Zara, posted a 14% fall in sales in the three months from August to October.

  • H&M recycles old garments into new clothes

    H&M recycles old garments into new clothes

    Fast fashion chain H&M wants to turn discarded clothes into something new to wear again — within five hours. The Sweden-based retailer is about to start giving consumers at its Stockholm store the option to turn in used garments that it will then transform into one of three different clothing items.

    Once the program begins Monday, customers will be able to bring in a garment they don’t want, which will be cleaned and put into a machine called Looop. The machine will disassemble it, shredding it into fibers that are then used to create new clothing. The effort comes amid a rising volume of global clothing waste and growing concern over fast fashion’s contribution to it.

    H&M is unveiling a garment-to-garment recycling system called Looop at its store in Stockholm. The company said the recycling process, which can handle more than one garment at a time, doesn’t use water or chemicals and sometimes might need “sustainably sourced” raw materials added in, but it hopes to make “this share as small as possible.”

    The entire process takes about five hours and is visible to shoppers. For now, customers can choose one of three items to be made — a sweater, a baby blanket or a scarf for a fee of $11 to $16.

    “We are looking to expand the range available as we get to know Looop better,” the company said in an email.

    The Looop machine dissembles old clothing, shreds it, turns it into yarn, which then is used to make new clothing. H&M said the system is currently only available in Sweden, where H&M is based. It declined to reveal what future plans it may have to expand Looop, if any. While the Looop system could help spread awareness about clothing waste and recycling, for now, it lacks the scale to make any widespread impact on the volume of clothing waste generated annually.

    According to the Environmental Protection Agency’s website, 16.9 million tons of textile waste was generated in the United States in 2017, the latest data available. The recycling rate was just 15.2 percent, with 2.6 million tons recycled.

    “Fast fashion has had an impact on this because so much of the clothing is not well constructed or made with synthetic materials that can’t be easily recycled,” said Jackie King, executive director of the Secondary Materials and Recycled Textiles Association, a trade group for the textile recycling industry.

    H&M and other fast fashion sellers like Zara have taken some steps to curtail textile waste.

    In 2013, H&M launched a global garment collecting program in all of its stores and has set a goal of having all clothing sold in its stores be made from recycled or sustainably sourced materials by 2030. That figure currently stands at 57%, according to the company.

    Similarly, customers can drop off used clothing, footwear and accessories in more than 1,300 Zara stores. Last year, Zara announced that all of the cotton, linen and polyester used by the company will be organic, sustainably sourced or recycled by 2025.

    “One of the biggest drivers of clothing overconsumption are fast-fashion sellers,” said Deborah Drew, analyst and social impact lead with the global research non-profit World Resources Institute. “Large companies like H&M and Zara can have a really big, transformational impact on the industry and on consumers if they lead the way in facilitating change.”

  • H&M India sales face first profit decline ever

    H&M India sales face first profit decline ever

    Though H&M reported lower sales during the nine-month from December 2019-August 2020 loss, it returned to profitability in September as sales recovered in many of its markets. The brand’s sales decline narrowed to 5 percent year-on-year in September. Currently, 166 of its stores are closed, although a large number of stores have opened with local restrictions and limited opening hours.

    From June-August, net sales of the Swedish fashion retail giant fell by 16 percent in local currencies to SEK50.87 billion. Its gross profit for the quarter dropped to SEK24.85 billion from SEK31.81 billion in the prior year’s Q3it. This corresponds to a gross margin of 48.9 percent.

    Profit after financial items was SEK 2.36 billion. Excluding IFRS 16, profit after financial items plunged to SEK2.26 billion from SEK5 billion. The brand’s sales during the nine-month period were significantly affected by the COVID-19 situation. Its net sales fell to SEK134.48 billion from SEK171 billion a year ago as Q2 included the height of the pandemic.

    The company made a loss of SEK1.613 billion during the nine months and a net loss of SEK1.24 billion. Excluding IFRS 16, its loss was SEK1.847 billion, much worse that the profit of SEK11.98 billion a year earlier.

    The firm is on a recovery trajectory even though it’s far from business-as-usual as fashion sales remain challenged globally.

  • Uniqlo joins Zara, H&M in tackling waste problem

    Uniqlo joins Zara, H&M in tackling waste problem

    In an effort to help the homeless restart their lives, UNIQLO Malaysia recently launched a clothing corner at Kuala Lumpur’s Homeless Transit Centre (Pusat Transit Gelandangan KL), a government initiative to help those on the streets get back on their feet. With the help of the centre, those who seek jobs can access proper attire as they embark on their new lives

    The clothes include casual wear, sports attire, and workwear – all of which are donated by UNIQLO’s customers.

    Many praised the company for its initiative in restoring hope for those in need

    UNIQLO’s All-Product Recycling Initiative encourages customers to donate old clothing, which is then recycled into new products

    If the clothes are wearable, they will be donated to refugees, disaster victims, and the underprivileged.

  • H&M launches E-commerce initiative on Zalora Philippines

    H&M launches E-commerce initiative on Zalora Philippines

    Global Fashion Group (GFG), the leading online fashion & lifestyle destination in growth markets announces the launch of a two-month partnership between H&M and ZALORA Philippines.  ZALORA is the first e-commerce platform H&M has worked within the region.

    The two-month partnership with global fashion brand, H&M will be available from 1 October to 30 November 2020 on the ZALORA Philippines website where customers can shop a diverse range of H&M apparel, shoes, bags, and accessories ranging from Ladies, Young Ladies, Men and Kids.

    “We are delighted to collaborate with ZALORA on this new journey that we are exploring in the Philippines. For us to meet new and existing customers where they are and when they want is something we have been looking forward to. They will be happy to find stylish and basic essentials that are affordable and friendly to our planet, true to our business idea of offering all our customers fashion and quality at the best price in a sustainable way. ZALORA’s values and culture align well with ours and we admire their commitment to providing good and trustworthy customer experience, something that we deeply commit to at H&M,” shares Sylvain Crouzat, Country Sales Manager for H&M Philippines.

    This partnership is not only ZALORA’s biggest brand launch in 2020 to date but also broadens access to innovative options for the conscious shopper. H&M’s Ladies Fall Collection will feature sustainable pieces built around recycled materials—giving new life to old PET bottles, old garments, or textile off-cuts. All the pieces from the Kids Category are also made with 100% sustainably sourced cotton and zero harmful chemicals. Shoppers may easily search for these sustainable finds by using ZALORA’s Earth Edit filter on the website and app.

    “In true ZALORA style, we are kicking off the final quarter of the year with a bang through this very exciting partnership with H&M. Since we launched ZALORA, H&M has been among the most sought-after brands by our customers so we’re excited to allow them to conveniently shop their favorite brand from the safety of their homes, especially during this time,” shares ZALORA Co-Founder and CEO, Paulo Campos III. “As advancements in technology continue to push fashion to more progressive heights, H&M and ZALORA are at the forefront of this endeavor. The collaboration reflects how both brands are committed to expand opportunities and options for shoppers in the digital age,” he adds.

    H&M is now available on ZALORA at  zalora.com.ph/hm with prices starting at PHP 299.

  • H&M to close 250 stores globally as customers move online

    H&M to close 250 stores globally as customers move online

    The world’s second-biggest fashion retailer, Sweden’s H&M, says it plans to cut 250 of its stores globally. The closures will come next year after the firm said the Covid-19 pandemic had moved more shoppers online. Although it said sales had continued to recover in September, they were still 5% lower than the same month in 2019.

    The firm has 5,000 stores worldwide, but it is not yet clear how many closures will be in the UK.

    It said it was “too early for us to give any details on this, the numbers will differ from national market to market”.

    H&M has the contractual right to renegotiate or end leases on about a quarter of its stores every year. The retailer said that it planned a “net decrease of around 250 stores” next year.

    While its pre-tax profits fell to 2.37bn Swedish krona (£210m) for the nine months to 31 August, this was better than analysts had expected.

    However, it said 166 of its stores worldwide remained closed, and a large number still had local restrictions and limited opening hours

    Analyst Richard Lim of Retail Economics said: “What we have seen generally over the past few months of the pandemic has been a step-change in the number of sales going online.

    “That has affected all parts of the industry, but particularly clothing and footwear.”

    He also said that in terms of consumers physically visiting stores to do shopping, there had been a move from High Streets and shopping centers towards retail parks.

    “People can go in their cars instead of using public transport, and they are also able to buy in bigger bulk at retail parks,” Mr Lim said.

    H&M said it would now accelerate its plans to increase digital investment to cope with growing online demand.

    The Stockholm-based firm said it had taken “rapid and decisive action” to manage the impact of the coronavirus, including changes to purchasing, investments, rents, staffing and financing.

    Chief executive Helena Helmersson added: “Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger.”

    Sofie Willmott, from analytics firm GlobalData, pointed out that H&M’s sales in September “fell just 5% demonstrating the relevance of its product offer as shoppers start to feel more confident returning to stores”.

    But she said the firm “must enhance its online proposition given the importance of digital channels, to succeed in a very tough market”.

    In addition, Ms Willmot said H&M should consider “more significant changes” with regards to shop closures, or it will “continue to be hindered by its excessive store estate”.

  • H&M says it’s straightening its back from Covid-19

    H&M says it’s straightening its back from Covid-19

    Global fashion retailer H&M had warned its preliminary third-quarter results may well be below that of the previous corresponding period – but it beat profit forecasts and has recovered much faster than expected.

    The company’s pre-tax profit for the quarter to August 31 was US$227.3 million, well below the $570 million from the previous corresponding period. H&M attributed the success to selling more goods at full-price, combined with strong cost controls.

    “As a result of appreciated collections together with rapid and decisive actions, the H&M group’s recovery is better than expected,” the retailer said in a statement.

    For the period, H&M group’s net sales decreased by 16 percent in local currencies compared with the corresponding period last year.

    The company said the improving sales through the quarter reflected the Covid-19 situation: at the beginning of the quarter, about 900 of the group’s more than 5000 stores were temporarily closed. At the end of the quarter, the other stores had reopened and only about 200 stores remained temporarily closed.

    The final results for the third quarter will be published on October 1.

    Meanwhile, the company denied it had any ties with a Chinese yarn producer over accusations of “forced labor” that involves ethnic and religious minorities from China’s Xinjiang province, according to a report.

    The report stated the fashion retailer specified it didn’t work with any garment factories in the area and would no longer source cotton from Xinjiang, China’s largest cotton-growing region.

  • H&M’s Cos launches online reseller marketplace

    H&M’s Cos launches online reseller marketplace

    H&M’s subsidiary Cos has launched a pre-owned fashion platform called Resell.

    Resell allows the brand’s customers to buy and sell their used Cos pieces, “re-inventing their wardrobe in a considered and sustainable way,” according to a statement from H&M.

    The launch is part of the brand’s program of developing circular fashion and renewable solution strategies.

    “Resell reinforces Cos’ ambition and journey to becoming fully circular and renewable, developing innovative ways to continue the brand’s commitment to quality and longevity by re-imaging the lifecycle of each pre-loved piece,” the company said.

    Resell will charge a 10-per-cent commission to cover “operational costs” for every item sold on the platform. The digital platform is now available in the UK and Germany and will go global this Autumn.

    “By extending the life cycle of your Cos item, we believe we can work together to make better environmental choices,” the company said.

  • H&M has created a jacket that gives the wearer a hug

    H&M has created a jacket that gives the wearer a hug

    Much has been made of the way technology has helped people stay connected since the introduction of social distancing measures and travel bans due to the global coronavirus pandemic.

    But anyone who has been separated from a loved one knows that even a video call falls short of the feeling of being together in real life. Many people have spoken about just wanting to give their friends or family members a hug.

    With a new jacket created by H&M Lab, the fast-fashion giant’s innovation hub in Berlin, they just might be able to.

    Earlier this month, the lab unveiled a new denim jacket with flexible sensors built into the shoulder areas, which gives the wearer the feeling of being hugged when the sensors are activated.

    Every jacket comes with a registration code that the user can share with their loved ones via an accompanying app. Only those with the registration code will be able to activate the sensors to let the jacket-wearer know they are thinking of them. Contacts can also create an individual touch pattern, so it’s clear who the hug has come from. The sensors are activated via the app by Bluetooth.

    The lab is calling the concept “Wearable Love”. It released a video about the invention earlier this month, but it is not yet clear when or where the jacket will be available for purchase, or how much it will cost.

    H&M is not the first apparel brand to explore the possibilities of wearable technology. Levi’s has also put sensors in a denim jacket, but they were geared towards more functional tasks, such as answering a phone call without having to take your mobile device out of your pocket. The context of the coronavirus has created an opportunity to explore new use cases for wearable tech.

    “Whether long-distance relationship or social distancing – no matter why you can’t have your loved ones around you: wearable love helps you to overcome boundaries and brings together what belongs together,” H&M Lab said on its website.

    H&M Lab created the Wearable Love jacket together with Boltware, a Berlin startup whose mission it is to turn analog garments into modern tech devices.

  • H&M suspends employees over use of racial slur

    H&M suspends employees over use of racial slur

    Fashion giant H&M says it has suspended a number of employees over the use of a racial slur relating to the name of a hat to be sold at stores of its & Other Stories brand.

    CNN Business, which first reported the incident, said that the slur, in an internal H&M document, related to a hat that appeared on a list of items and accessories to be sold in the autumn/winter collection.

    “We are deeply sorry to have discovered that one of our brands, & Other Stories, used a racist slur in an internal product overview,” H&M spokeswoman Ulrika Isaksson said in a written comment to Reuters.

    “We take the use of racially offensive language extremely seriously. While internal and external investigations are taking place, we have suspended the team and managers responsible for this area of the business.”

    H&M, the world’s second-biggest fashion retailer, did not say how many employees had been suspended.

    In 2018, the Swedish company was forced to apologize for an advert that was widely perceived as using racist language and in its statement on Thursday H&M acknowledged that it had “challenges with the diversity of some of our own teams”.

    It said it would also take further measures including specific targets for boosting diversity in its major markets by the end of 2020 and the creation of an external advisory council to consult on its business direction.

    According to H&M’s website, & Other Stories has 70 stores in 17 markets in Europe, the United States and Asia.

  • How H&M got glocal in Asia

    How H&M got glocal in Asia

    ‘Glocalisation’ is a trend retail chains have been embracing for more than a decade. It’s the art of fostering a local appeal to a globalised retail offer, empowering regional decision making in the hope of creating a bond with people in communities of consumers a world away from the company’s head office, but continuing to enjoy the advantages of critical mass in production, logistics and other back-of-house operations.

    But the fashion industry, trapped in the pressure cooker of seasonality-driven product design and release, has been slow to respond on a global scale. While luxury brands have always found an insatiable audience of consumers in markets like China, where wearing a brand is a sign of status and success, some mainstream global fashion brands have foundered abroad. Gap failed in Australia, Victoria’s Secret had mixed success after discovering its styles, fits and sizes weren’t really a natural match for typically petite Asian physiques. River Island and Banana Republic never took off in Singapore, Marks & Spencer quit Mainland China – and labels like Forever 21 and Macy’s struggled to make any headway on the mainland.

    And that’s before you consider some of the public-relations disasters in recent years by brands large and small who were tone deaf to cultural differences and regional geopolitical tinder points (think Versace, Coach and Givenchy, who learned the hard way not to project Hong Kong, Macau and Taiwan as territories separate from China…)

    Given that context, H&M has begun to stand out from its peers by steadily building affinities with local personalities, influencers and designers – and most recently models. Not just in China, but regionally, one of the few continents where the company is aggressively expanding its store networks as growth wanes in Europe and North America.

    The move has been subtle and undertaken without fanfare (H&M declined to comment for this feature) but it gained momentum last year when the company appointed musician and artist Lay Zhang Yixing as its spokesperson for its menswear collection in Greater China.

    Most recently, the company assembled a group of models from around Asia for a photoshoot for its up-scale H&M Studio Spring Summer 2020 collection, choosing women well known in their home markets. While H&M has long embraced diversity in the talent modelling its new lines, this was something quite unique for the label.

    From Gotland to Sumba

    While top international models posed in the new collections on beaches and sand dunes in America, far away on the island of Sumba in Indonesia, five Asian models created a very different look for the range. The five were Quynh Anh Shyn of Vietnam, who has her own fashion line, Iman Fandi Ahmad of Singapore, and three Malaysians: designer Kittie Yiyi, blogger Rachel Wong and fashion and beauty entrepreneur Bella Kuan.

    The move drove widespread exposure for the brand and the range across Southeast Asia as the models-cum-influencers shared their experiences during the photo shoot, which one Vietnamese fashion magazine described as an “island boot camp”.

    “Free, colourful and bravery – adjectives to describe H&M Studio Spring Summer 2020 – are also adjectives easy to relate to Quynh Anh Shyn’s fashion style during the past year,” it wrote.

    That’s grassroots glocal praise for a fashion brand bedded in Sweden and a range inspired by a research trip to the Swedish island of Gotland, according to H&M creative advisor Ann-Sofie Johansson.

    “The SS20 collection muse is a forward-looking free spirit – someone who surfs, climbs, explores and who wants to experience new things,” she explained at the US launch. “The collection is both raw and refined: natural fabrics with raw edges are mixed with refined elements, such as shiny metallics and futuristic accessories. There’s a freedom in the way the collection can be worn, too: we want our customers to feel that anything goes.”

    Some of the new Studio pieces went on sale in February this year and the balance will be launched in late May.

    China focus

    Unsurprisingly, perhaps, a core focus of H&M’s ‘glocalisation’ in Asia is Mainland China.

    Lay’s appointment was a first for the brand’s menswear collection. The 28-year-old Chinese singer was a member of the South Korean-Chinese boy group Exo and has starred in films including The Island and Golden Eyes. Lay has also served as an ambassador for other global fashion brands, including Converse, Mac Cosmetics, Chaumet Paris and Ray-Ban. Last year he also signed on as Calvin Klein’s first Chinese global spokesperson and publicly terminated a similar contract with Samsung after the company violated the One-China policy.

    When he was signed with H&M, the company said in a statement that the move was aimed at continuing to enhance its market competitiveness and brand influence.

    “The brand is taking a bigger step developing further its business in Greater China based on its menswear products with design and quality.”

    “I hope everyone can see the versatility of H&M men’s wear through Lay’s interpretation,” added Magnus Olsson, GM of H&M Greater China, at the time.

    In late September, H&M released its first collaboration with a Chinese designer Angel Chen, which it says was inspired by the theme of “Kung Fu”.  “The collection portrays a surprising, unique east-meet-west street style via a groundbreaking combination of vivid colour and embroidery,” Chen’s publicity explained.

    Educated in London but now Shanghai-based Chen has her own successful label, which is now sold through 70 retailers around the world, including department stores Bergdorf Goodman in the US, Lane Crawford in Hong Kong, Galeries Lafayette in France and Selfridges in the UK. She has tailored garments for influential celebrities including Bella Hadid, Chris Lee and Fan Bingbing, all influential pop culture figures in Mainland China.

    Lunar New Year provides an opportunity for many international brands to plug in to a core feature of China’s culture and H&M is no different.

    This year, the brand released what was probably its most extensive range yet, spanning women, men and children. Celebrating the Year of the Rat, items featured motifs, bold red colour swatches and comfortable silhouettes, spanning more than 100 SKUs. The accompanying campaign and photography focused on families sharing time together, a core aspect of the festive season across Asia.

    H&M has a long way to go in its Asian journey. While it has an established presence in Southeast Asia, there was – before the coronavirus pandemic – a plan to open stores in smaller cities.

    India is H&M’s fastest-growing market globally, with 47 stores in tier-one cities (compared to Zara’s 22) and an online presence achieving 49-per-cent year-on-year growth last year. It is now targeting smaller cities and has announced a collaboration with local designer Sabyasachi Mukherjee to launch a new collection this year.

    With their rapidly rising middle class, parts of Asia represent a huge opportunity for global fashion brands. Using local models, influencers and celebrities is a sure-fire way to engage with consumers, adding local context to a global brand name.