H&M Group'S Online Sales Rose 30% In The Third Quarter.

On October 6th, the "electricity business" learned that, in the third quarter of August 31, 2019, H&M Group sales rose 12% to 62 billion 570 million Swedish kronor about $6 billion 520 million, net profit rose 25% to 5 billion Swedish kronor about $500 million, gross profit increased 13% to 31 billion 800 million Swedish kronor about 3 billion 180 million dollars, gross profit margin also increased, from 50.3% to 50.3%.
In order to adapt to the fast changing consumption habits, H&M focuses on digital expansion. Financial reports showed that H&M group's online sales rose 30% in the third quarter. Karl-Johan Persson has predicted that the growth rate of online business will be about 20% from 2019 to 2022, with the income from online revenue reaching about 75 billion kronor in five years from the perspective of the measures such as the establishment of Afound and the establishment of a discount e-commerce platform.
In early 2018, H&M group held its first capital market day activities to make specific plans for the transformation of the company. The transformation plan focuses on the development of online channels, as well as enhancing the user experience of core brand H&M, including quality, price, practicality and fashion, while allowing online and offline integration.
Subsequently, the Swedish group carried out a series of actions, including entering the platform under the banner, responding to the online payment and installment payment of the younger generation of consumers, investing in the financial technology company Klarna Bank AB to enhance the consumer experience, and introducing other brands to test the water comprehensive electricity supplier in the H&M business platform recently.
In addition to the Chinese market, H&M, which also has nearly 1 billion 300 million people, is regarded as a new potential market by the brand. The brand also opened business in the early March of last year. In August this year, H&M group entered into cooperation with Myntra, a fashion supplier, to further enhance its share in the electricity supplier market.
H&M group has also begun to promote the next day delivery service worldwide. It has been launched in 15 markets and trial delivery service in some areas. In addition, American consumers have been able to buy H&M brand products directly on Instagram. The group's brand Monki is also about to launch live shopping projects, and consumers can interact with each other through the official website.
The Swedish group said that the annual net increase in stores is expected to further decrease from 130 to 120.
In addition, Karl-Johan Persson, chief executive of H&M group, said that in order to make the consumer experience more inspiring and simple, Swedish companies increasingly integrate digital and physical channels, including through continuous online ordering, offline pick-up and return services, to search, more flexible payment methods and faster delivery speed.