In March of this year, H&M, as a “prominent player”, made some wrong moves and was strongly boycotted by Chinese consumers. Now nearly six months have passed, H&M seems to be very nostalgic for the Chinese market and is preparing to use “cross-dressing” to re-enter the Chinese market.
According to the latest media reports on Thursday (September 23), H&M plans to implement A new plan is to introduce some new brands to form new stores Arket and & Other Stories to expand the company’s market share in China, and will first test the waters in Beijing and Shanghai. According to market analysis, this is just a “little trick” used by H&M. Although it is a new store, the core is still H&M. Many uninformed consumers will regard it as a new brand for consumption.
You must know that since making the wrong move, H&M has been labeled as a “double-sided enterprise”. The company’s online products have been relegated to the “Ignore” and have been criticized by large e-commerce platforms such as Tmall and JD.com. Removed from shelves. In addition, life is not easy for the company’s offline stores. More than 10 stores have been closed, and the stores that are still open are also very deserted. They can only rely on crazy discounts to attract consumers.
What’s even worse is that in the second quarter of this year, H&M’s sales in the Chinese market fell sharply. It fell 28%, with a loss of US$74 million (equivalent to about 470 million yuan). The Chinese market also retreated from the company’s third largest overseas market to its sixth largest market.
On the other hand, my country’s national fashion sportswear companies are highly sought after by Chinese consumers. Statistics show that from January to June this year, the net profit of domestic sports brands reached 1.96 billion yuan, a year-on-year surge of 187%.
Actually, the Arket and & Other Stories planned to be launched by H&M are not new brands Yes, the markets that these two brands focus on are different from the hypermarkets that H&M is targeting. They mainly target the mid-to-high-end market. There are currently 21 Arket stores around the world. These two stores had already conducted sales tests on the online platform before entering the Chinese market, and the results attracted the attention of more than one million Chinese consumers.
I believe that H&M also decided to focus on the big picture after seeing the preferences of the test sales data. Stores are shifting to the mid- to high-end market. However, according to market analysis, Chinese people still have resistance to H&M. If consumers know that the “big boss” behind these two brands is H&M, will they still pay for it?
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