Fast Fashion Giant H&M Officially Combined With Tmall, A Local Electricity Supplier

Ten years after entering China, from Sweden

Giant H&M formally and locally

Tmall combined.

"H&M has been in China for ten years, and we are aware of the pformation of fashion retailing.

In China, many people prefer to use online platforms and mobile phones to shop.

This is not to say that investment has not been enough, but because of environmental changes. "

Recently, when H&M announced its entry to Tmall, Magnus Olsson, general manager of H&M Greater China, said in an exclusive interview that the development of China's electricity providers is very fast. "But customers do not like shopping in physical stores, because the e-commerce platform can bring more convenient shopping experience.

Due to changes in the environment, we will facilitate a better integration of online platforms with physical stores. "

According to the world clothing shoes and hats net, in March 21st, Hennes&Mauritz (H&M) banner.

Tmall HOME (H&M) has officially entered Tmall (Tmall). According to the data from reporters in H&M, Tmall flagship store opened more than 10000 single products online on the first day of its opening, with over 1 million fans and exceeded 3 million to shop visits.

"Every enterprise is looking for new growth points. Even in the face of China's huge market, these international fast fashion giants are starting to grow feeble.

The layout of online second and second tier three tier cities has basically been completed, and there has been little growth.

Roland Begg senior partner Ren Guoqiang told reporters, "although H&M has been doing its own business, there is still a problem of diversion. Tmall is something that must be done at a certain stage."

Digital fast fashion

According to H&M's 2017 earnings report, the total sales of H&M group in fiscal year 2017 amounted to SEK 231 billion 771 million, increasing by 3% in local currency.

As of fiscal year 2017, H&M has opened 8 new H&M online markets and 5 new H&M entity stores.

In the financial year, H&M group opened 4739 stores in 69 markets around the world, and opened online stores in 43 of them.

The Chinese market contributed 11 billion 30 million Swedish kronor sales in fiscal year 2017, up 3% in local currency, ranking one of the top five H&M markets in the world.

In fiscal year 2017, H&M opened 62 new stores in 52 cities in mainland China, of which 22 were the first H&M stores in the newly opened cities.

At present, H&M has 455 stores in 138 cities in mainland China, and Karl-Johan Persson, CEO of H&M group, said that the rapid development of digital penetration has become more and more popular in the garment industry. H&M also said that its digital pformation is the opportunity for future growth. "Tmall is an important complement to our existing physical stores and online stores.

We have seen the great potential for growth in the future, and Tmall will become an important part of this development. "

In 2017, H&M online sales accounted for 12.5% of total sales, while online sales accounted for 22% of the total operating profit. It is expected that online sales will continue to grow by 20% every year, and 45% of the group's total investment will be applied to the development of e-commerce platform.

"We will not cooperate with other e-commerce platforms for the time being. The current goal is to integrate seamless channels between online and offline channels."

Magnus Olsson believes that "we still have confidence in the management of physical stores, and at the same time, the technological development of physical shops can share online e-commerce platforms to reduce inventory pressure."

Compared with its old rival, UNIQLO, Zara and other brands, H&M is believed to face more pressure from pformation.

Ten years after entering China, fast fashion giants bid farewell to the era of high growth, and the overall decline of the clothing industry in the entity seems to have not changed, but H&M seems to have slowed down.

At the end of October 2017, H&M launched its digital customer loyalty project H&M Club in China. "H&M Club can help us better understand customer's consumption habits and provide targeted discount, while enhancing customer's brand preference."

The project leader Cathrine Bergstrom has told reporters earlier that the H&M Club project has been running for two or three years and has been launched in 13 countries. Previously, H&M membership system was only implemented in European countries. "H&M Club is relatively mature and has been successfully launched in Japan. It is the first Asian market to launch H&M Club, and now we are ready to extend it to the Chinese market."

For the future strategy in the Chinese market, Magnus Olsson said that from the long-term goal, "first will continue to develop entity stores, we will develop new physical stores in more potential cities; second, develop e-commerce platform to achieve seamless connection between offline and online; third, continue to brand concept, and hope H&M has a good reputation in the eyes of consumers, and provide them with fashion and quality in a sustainable way and preferential prices."

The fast fashion of "conservative"

McKinsey's "double click" Chinese consumer recently pointed out that China's consumption accounted for more than 60% of GDP in 2016, from a productive society to a consumer society.

Today, the rise of channel platform and the abundance of Commodity services, how retailers redefine product mix and build the logic and chain of production, sales and service, and understand the psychology and behavior of consumers is the key to winning.

In 2017, the global fashion industry was warmer. McKinsey predicted that from 2016 to 2018, the growth rate of industry sales will rise from 1.5% to 3.5% to 4.5%, an increase of nearly three times.

Judging from the category, global clothing and footwear sales continue to rise.

Sportswear grew fastest, with a year-on-year increase of 7.5%-8.5%. In the 2014-2016 year, UNDER ARMOUR sales doubled in two years in a row.

The whole channel layout has become the "standard" of clothing enterprises. At present, the online purchase of popular clothing is very mature, and online sales account for 30%-35% sales.

NIKE launches Nike+ membership system and Nike Run and other functional APP to improve user stickiness.

High-end sports and feather clothing brand MONCLEAR, the first step in China launched a micro store.

The rest, such as online retailer YOOX, light asset luxury electronic business platform FARFETCH, high tech start-up company STITCH FIX, and numerous digital business models create better investment returns than traditional brands and operators with innovative consumption patterns, inventory models and high-tech algorithms.

With the active development of e-commerce channels and digital marketing, the pressure of offline shop pformation is still plaguing most retailers, including H&M, UNIQLO and Zara.

Ren Guoqiang said, "down the line, some tier markets do not support fast fashion shop conditions, mostly for local franchisees.

But the international fast fashion giant is hardly able to make an opening up in China. The multinational clothing enterprises in the past two years are still very embarrassed in the Chinese market: they seem to have huge population base and increasingly strong consumption power, but the growth point and market growth can not be achieved by the current business model.

On the other hand, the threat seems to come from the rise of local enterprises. The reporter combed the earnings performance of many listed companies in Shanghai and Shenzhen and Hong Kong stock market, and the performance of local garment enterprises in 2017 has been improving as a whole.

Anta, Semir, Taiping bird, seven wolves, Jiangnan Buyi and other brand revenue growth reached two digits. Anta benefited from the growth of its FILA and children's clothing business, and the market value soared 40 billion yuan, becoming the world's largest sports giant after Nike and Adidas; in brand building and innovation, Lining triggered the social network hot debate by product pformation landing in New York fashion week, which directly boosted its stock price.

"It is a global problem that clothing enterprises can't open shop at a certain stage, and the growth point is hard to find. Brand wants evergreen needs more diversified attempts, such as developing second and third brands, and constantly innovating."

Ren Guoqiang pointed out that the clothing brands with better performance in recent years all developed new brands to drive growth. "Clothing is still a necessity for everyone, but the tastes of consumers are changing all the time. Whether old brands can adapt to the process, especially whether the external clothing brands can carry out business model innovation in the Chinese market, and the large clothing enterprises must also have a continuous sense of crisis."

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