H & M closed China's first store!Directly hit the scene →

On June 24, 2022, HM Huaihai Middle Road Store officially closed the store. The store opened in 2006 and was the first store in Mainland China. Huaihai Middle Road is a traditional business district in Shanghai, gathered in a large number of brand stores. On June 28, Observer.com went to two stores in HM stores to visit.

HM China First Store Original Site

HM dentation is clearly visible

Although the HM Huaihai Middle Road Store still exists in the official micro, the store posters and signboards have been withdrawn, and the windows, window, door and other places are covered with whiteboards. A few pedestrians will pay attention to the closure of this store, but the HM dentation on the plaque reminds that the shop has existed.

HM Crystal Center Store

Later, Observer.com went to the HM Crystal Center store in Jing'an Temple in Shanghai, Shanghai, and the store was comparable to other shops. Unlike other shops, the window does not show new seasonal products or endorsement posters. Instead, it is posted with a red and white poster that is posted with the words "Discounts at the end of the quarter, and starting now" and "as low as 50 % off". Most of the stores are labeled with discount promotion.

HM immediately responded to the closing shop, and it has been optimizing the store portfolio, which will be opened after the store is relocated.

Affected by the epidemic, HM's global performance is declining. The first quarter of the fiscal year HM2022 showed that as of February 28, the total number of stores decreased by 228 compared with the same period last year.

In addition, HM also lost the Chinese market. 60 stores have been closed, accounting for 12%of the total number of stores. In addition, the Tianyancha APP shows that HM -related companies Heine Smoris (Shanghai) Business Co., Ltd. has more than 600 branches in China, of which more than 100 of them have been canceled. On April 1st, HM's low -cost fast -fashion brand Monki issued a closed store announcement in Tmall flagship store.

HM's decline in the Chinese market on the one hand is quality issues. In order to save costs, HM chose foundries to produce, so that the quality of clothing cannot be guaranteed. From 2017 to 2022, HM's affiliated company Hanes Morris (Shanghai) Business Co., Ltd. was punished 32 times for reasons for unqualified product quality and false publicity. It was punished 10 times in 2021. In addition, HM has been recalled the corresponding products due to unqualified product quality.

On the other hand, the "Xinjiang Cotton Incident" accelerated HM's decline in China. HM stores have been removed from major e -commerce platforms, and the reputation of the corporate has also fallen to the bottom. In the second quarter, HM's sales in the Chinese market plummeted 23%. In the third quarter, China lost its list of its top ten markets in the world.

HM was pinched on both sides. Overseas market SHEIN, FASHIONOVA, Primark and other low -cost ultra -fast fashion brands have a great impact on HM brands such as HM. In China, with the rise of Li Ning and other brands, the national tide heat has greatly impacted HM. Independent economist Wang Chikun once said: "In the long run, foreign fast fashion brands such as HM will gradually be replaced by domestic brands. Especially in terms of sports brands, the Chinese market is highly mature. At the same time, the market is already in the era of stock and fierce competition. This is long, and domestic brands Li Ning and Anta should do a good job of occupying these international free markets. "

HM has also begun to actively rescue himself. HM pointed out in the financial report that in 2022, it will invest about 10 billion Swedish Krona to promote the transformation. In China, on the one hand, HM invests in the high -end products to get rid of the label of "cheap and low quality", and on the other hand, seeking specific consumer groups.

However, Cheng Weixiong, an independent analyst of the shoe and clothing industry, believes: "The iteration of international fast fashion products such as HM is weaker than the iteration update of local omni -channel brand products, and the online layout speed of such international brands is also weaker than local brands."

Source: Observer.com/Liu Dongfeng

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