H&M China Stores To Launch An Integral Membership System In Response To The Slowdown In Performance

Following Japan

After the introduction of membership system, according to the world clothing and shoe net, recently, H&M China stores also launched an integral membership system H&M Club. Consumers can enjoy the first 20 percent off discount immediately after they join.

Prior to this, H&M Xidan Joy City store closed shop sparked a huge discussion, the industry believes that due to radical expansion, resulting in H&M growth slowed.

According to the latest 2017 fiscal year's first three quarters earnings report, according to local currency calculation H&M group report period tax revenue sales grew 4%, an increase of 2 percentage points over the same period last year.

Today, when H&M enters the 10th anniversary mainland of China, the introduction of membership system will change the trend of H&M performance slowdown.

The stalemate of market development.

Introduction of membership system for the first time

Membership system has always been the publicity of various trades.

One of the most important means, but rarely mentioned in the fast fashion field.

In October 19th, H&M officially launched its membership service in China, and put the publicity of H&M Club in the eye-catching position of the official website.

According to H&M, members who join H&M Club can enjoy 20 percent off discount. Online shopping consumers can also enjoy postal service. H&M Club members adopt integral system, 1 yuan is equal to 1p score, and online and offline shopping can accumulate points.

In addition, members can enjoy special offers and discounts and are invited to participate in exclusive activities.

Reporters experience found that the current 1000p points can be replaced online shop discount of 150 yuan, 50 yuan discount.

In fact, China is not the first country to introduce membership system into H&M. As early as 40 years ago, Switzerland set up a membership system and developed membership system in over 10 European countries.

In October 12th, H&M Club was launched in Japan, and Japan became the first country to introduce H&M members outside Europe.

With the introduction of membership in China, H&M has opened its membership system in the two largest markets in Asia.

H&M official said that under the background of data age, the introduction of membership system can help enterprises understand the consumer demand of consumers online and offline, so as to provide consumers with more targeted services and additional benefits.

However, the industry believes that this is a signal that the opening of the H&M membership system may be to make up for the gradual slowdown in the Asian region, and the future membership system will become the standard of fast fashion brands.

Coping with slower growth in performance

In September of this year, the news of Xidan's joy city's withdrawal of shops made the industry an uproar. Although H&M was given the reason for internal decoration and fire protection, the announcement did not specify the specific time for the re opening of H&M.

According to a senior commercial real estate personage, the main reason for the closure of H&M is that the mall wants to adjust the H&M's store area, thereby reducing the amount of H&M used.

Some experts also said that H&M has not been able to bring better economic effect to the Joy City, which reflects the attractiveness of fast fashion brands from the side.

According to Japanese media reports, the US fast fashion brand Forever 21 was also closed in mid October in the first flagship store in Japan.

The analysis points out that the reason for closing Forever 21 is also due to the reduction of passenger traffic volume.

In addition, GAP, a fast fashion brand, has closed many stores in Japan.

The personage thinks, fast fashion enters store closing tide is because of fast fashion field enterprise performance slow down or decline.

H&M announced the first three quarters of fiscal year 2017 financial report shows that the first three quarters of 2017 sales tax fell 2 percentage points over the same period last year.

According to industry experts, H&M has only opened membership in China and Japan due to the slowdown in Asian performance.

In the field of fast fashion, there are not many enterprises involving membership system, fast fashion products never lack sales, uniqo has not introduced membership system in China, and H&M competitive product ZARA has not set up membership system.

Therefore, the introduction of H&M membership system in China means that H&M wants to increase user stickiness through membership.

Collect user big data

Guo Yan, Professor of China World Trade Center Department of Beijing Institute Of Fashion Technology, believes that the introduction of the H&M membership system is aimed at enhancing user stickiness. In addition, H&M may also want to make products that are more suitable for Chinese consumers by collecting big data, so as to ensure a steady increase in performance.

Guo Yan said that fast fashion has been developing rapidly in the Chinese market without worrying about sales, so there is no need to introduce membership system.

However, due to the slow growth of performance in recent years, the development strategy needs to be adjusted.

At the same time, the selection of membership system in China can better open the mainland market and drive sales in Hongkong and Taiwan.

Guo Yan predicted that H&M could be introduced into Hongkong and Taiwan in succession.

It is also the performance of H&M's deep excavation of the Chinese market after many years of entry into China.

In addition, the development of e-commerce also determines the development strategy of fast fashion.

Another industry expert said that the foreign fast fashion self operated electricity supplier is different from China. They are mainly complementary and different from China's antagonistic relationship.

Guo Yan said that the closure of H&M and other fast fashion brand shops will not have much impact, and the closure of physical stores will even save the cost of shops.

In Guo Yan's view, the physical store has brought more experience to consumers. Consumers can place orders online and pick up goods at stores.

This form has realized the unification of online and offline, and has also opened up the platform of enterprises.

She believes that the trend of fast fashion shops is not due to the slowdown in performance, because whether online or offline, the ultimate beneficiary is the enterprise itself.

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