H&M Has Suffered Setbacks In South Korea And Will Expand Its Stores In China

Last year, Swedish fashion brand H&M's operating profit in South Korea dropped significantly. Critics claim that H&M's products are not in line with the local consumers' aesthetic standards. H&M argues that the main reason for the sharp drop in profits is blind expansion and excessive investment in new branches, rather than consumer dissatisfaction with products.

According to Financial Supervisory service (FSS), H&M lost its operating profit in 2014 to 3 billion 300 million won (about 3 million US dollars), and the difference between 2013 and 6 billion 200 million won was huge, although the sales revenue of H&M increased to 138 billion 300 million Han Yuan in 2014 and only 122 billion 600 million won in 2013.

After reaching its peak in 2012 (operating profit of 13 billion 400 million won), H&M's operating profit has declined for two consecutive years.

But in China, H&M has developed rapidly. In February, H&M landed for the first time. Taiwan area It has caused consumers to rob, and the momentum is no less than rush to buy "kidney 6". In the morning, there were about 100 people in the shop. Before the 10:00 opening shop, 1200 people were queued up, and Miss Liu, who grabbed the head of the fragrance, was queuing up from February 10th night for 3 days and 3 nights, only to get 8000 yuan (New Taiwan dollar, the same below) shopping, and the top 2000 limited tot bags were sent out in 1 hours.

Taiwan flagship store is divided into women and men's clothing. Children's wear With the HOME series, most of them are women's wear, one to two floors are women's wear, and the flagship store is nearly 900 Ping. According to reports, Magnus Olsson, general manager of H&M Greater China, said that in recent years, parity has grown rapidly in the Asian market. Since its entry into mainland China in 2007, there are now 230 stores. This year, apart from the Taiwan market, it will also open its first store in Macao.

　　 H&M group In its latest earnings report, the group will continue to promote long-term investment. In 2015, it plans to open 400 stores in the global market dominated by the United States and China, and extend products to make-up, body care and hair care products.

For the group's new store opening plan, reporters yesterday asked the H&M public relations officer in China about the number of shops planned specifically in China, and the other said it was not disclosed at the moment.

"In 2015, we will have a longer term long-term investment, which will be between 400 million and 600 million Swedish kronor (or 48 million 500 thousand US dollars and 72 million 700 thousand dollars at the current exchange rate)." Nils Vinge, head of H&M investment, told analysts at a conference call on Wednesday afternoon that the company did not disclose the overall investment figures. "In 2015, we are in a period of intensive investment, which will last until 2016." Jyrki Tervonen, chief financial officer, added.

It is understood that by 2015, the H&M brand will launch e-commerce in nine new markets, including Belgium, Bulgaria, Czech Republic, Hungary, Poland, Portugal, Romania, Slovakia and Switzerland. The company will also focus on improving the existing market of e-commerce functions and improving its full channel experience and services, such as scanning and purchasing.

H&M plans to open 400 new stores this year. The figure is 379 in 2014, and will continue to expand the existing market, especially in the US and China, and open the first stores in Taiwan, Peru, Macao, South Africa and India.

"We expect the resistance of US $2015 in the fiscal year to keep the profit margins under pressure. Increasing the level of long-term investment plans is related to IT capital expenditure, and the cost increase in Asia and the option to reduce costs in stores are less." Analysts wrote.

H&M said sales in January are expected to grow at 14% local currencies. "Strong sales in December and January have made a good start. Although the increasingly expensive US dollar will affect our purchasing cost, we will ensure that we provide the best prices for customers in all markets, "Persson said.