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    Bigger Expansion May Be Fast Fashion H&M Self Built E-Commerce Platform

    2017/4/6 16:15:00 38

    H&MFast FashionE-Commerce Platform

    Online stores have covered 35 markets.

    Since the launch of the online store in 2014,

    H&M

    Sales growth in electricity suppliers far exceeded expectations, especially in the Chinese market.

    Magnus Olsson, general manager of H&M Greater China, said earlier: "more people are willing to shop online, whether in physical shops or H&M online stores, we have seen Chinese consumers' enthusiasm for H&M and fashion."

    However, unlike ZARA, UNIQLO, GU, GAP, FOREVER 21, C&A, TOPSHOP, SPAO and other fast fashion brands, H&M is not currently stationed in any e-commerce platform, but by developing website hm.com to build online businesses.

    In 2016, H&M launched 11 new H&M online stores in Japan, Greece, Canada and South Korea.

    (others include Ireland, Croatia, Slovenia, Estonia, Latvia, Lithuania, Luxemburg and other countries).

    In the 2016 fiscal year, H&M group opened 4351 stores in 64 global markets, and opened 35 online stores in 35 of them.

    Self built e-commerce platform, both advantages and disadvantages

    Self built online store enables the brand side to have a higher degree of freedom in user interface and content design, and also helps H&M maintain a unified and clear international image. At the same time, it will also be more rapid in acquiring relevant data, and the trend of analysis will be more rapid and agile.

    But there are advantages and disadvantages. The practice of relying on self built channels to develop electricity providers is considered "too conservative" by the industry.

    Earlier, Tmall apparel Liu Xiuyun has revealed that 90% of the world's fast fashion brands have entered Tmall's flagship store.

    And now most of the fast fashion brands are basically laying a number of e-commerce sales platform.

    Cooperation with e-commerce platform without "traffic capacity" will naturally affect brand communication.

    In this regard, Magnus Olsson believes that multi-channel development is

    Fast fashion

    One of the future trends of the industry is, "compared with other countries, Chinese consumers have been very advanced in terms of payment, communication and interaction." but at present, H&M hopes to form a multi-channel sales platform through self built platform and physical stores.

    H&M group of Hong Kong, Macao and Taiwan businessmen is expected to open its performance report for the first quarter of February 28th as of 2017.

    The report shows that H&M group has more than 4400 branches in 65 global markets.

    The H&M group plans to expand the Internet market to six new regions, including Turkey, Taiwan, Hongkong, Macao, Singapore and Malaysia this year.

    At the same time, it launched its brand new Arket in 2017 to promote sales. H&M group has high hopes for ARKET, because in the opening of Arket London's first store, the brand will launch online stores in 18 European countries at one go.

    About H&M:

    H&M was founded in 1947 by Erling Persson in Sweden.

    Today, H&M sells clothing, accessories and cosmetics in 1500 stores all over the world.

    The old H&M store in Stora Gatan street, Sweden, is the world's first H&M store.

    The brand name of H&M is from "Hennes" (Swedish "she" means). The women's clothing is combined with the "Mauritz" men's brand, and each takes the first letter as "H&M".

    Price is the way H&M has always chosen.

    Founded in 1947, the founder is the father of current chairman Pearson (Stefan Persson).

    At that time, H&M featured a par price. As Sweden's retail industry was the same as most European countries, it had always been dominated by expensive department stores, so H&M suddenly launched a big red market in the market.

    When Pearson joined the company in 1972, he hoped that the company could add popular and quality features beyond its only low price.

    Although many people believe that these characteristics can not exist in a brand at the same time, Pearson believes that the company can do it.

    Then H&M 's "best price, popularity and quality" is a real shot in the company's success.

    H&M copied the three in one formula successfully to other markets.

    Although H&M is from Sweden, the largest market is in Germany.

    According to Forbes magazine, in 1982, when Pearson took the company from his father, H&M had only more than 100 branches, and most of them were in Sweden. Forbes

    Today, the company's ambition has been burning from Europe to the Americas, with more than 800 branches in fourteen countries, and 88% of its turnover last year came from foreign markets.

    The number of new stores opened in 2003 is expected to reach ninety.

    The expansion rate of the company in the past 6 years is about 75%, and the goal now is to enter a new country every two years.

    In April 12th, the Swedish fashion giant H&M brand store officially opened in Huaihailu Road, Shanghai. According to H&M, its single store turnover has reached a maximum of 2 million yuan per day, which is equivalent to the total sales of 200 Chinese clothing brands.

    Keith Wills, an American retail market analyst, commented: "no European retailer can expand abroad so rapidly and successfully."

    Pearson told a business week interview that his father had questioned whether the company's expansion policy had gone too far. Sometimes he would ask Pearson, "Why are you so anxious?" after all, his father set up his first foreign branch in London 29 years after he founded the company.

    Pearson said that the answer he gave his father was very simple, that is, "when you are hot, you can not stop to cool the heat."

    Besides strategy, the execution of details is also an indispensable factor for H&M's success.

    Nathan Cockrell, a retail analyst in London, said: "the way H&M is run is by comparison."

    Pearson looks and talks more like a financial expert than a retail magnate.

    He controls the company's expenditure in person.

    In order to reduce costs, in 1990s, Pearson even confiscated his staff's mobile phone. Nowadays, only a few top executives in the company have mobile phones, and companies encourage employees to take business class and taxis only in exceptional circumstances.

    Although it is necessary to save money in small areas, the company is willing to do so in matters of great importance.

    H&M has invested 4% of its annual revenue in marketing expenses. Advertising has hired famous photographers.

    The company believes that

    H&M

    Shopping must be very easy and interesting, so the company attaches great importance to store design and product layout details.

    For example, the message conveyed by the window display, the information on the clothes, the design of the changing room, etc.

    In order to make it easy for customers to find the storefront, the company will find the best location at any cost without planning the location of the new branch.

    For more information, please pay attention to the world clothing shoes and hats.

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