What Is The H&M Of The Fast Fashion Brand Under The Environment Of Collective Decline?

Recently, the third quarter results of H&M released by Sweden fast fashion group show that, as of the third quarter of August 31st this year, H&M sales increased 12% to 62 billion 570 million kronor (about 45 billion yuan), pre tax profit rose 24.9% to 5 billion 11 million Swedish kronor (about 3 billion 600 million yuan), and its pre tax profits eventually increased after the eight consecutive quarterly decline. In the environment of fast fashion brands being collectively weakened, what did H&M rely on?
According to the reporter, in order to enhance the performance, H&M has carried out a series of strategic adjustments. The most interesting thing is that since last year, H&M has moved the marketing scene to the online business and promoted the business of e-commerce on a global scale. At the same time, H&M also launched the next day delivery service, and trial delivery service in some areas.
H&M China company responsible person in an interview with the China Daily News reporter said, H&M's e-commerce business in the Chinese market is developing more rapidly. Last March, H&M officially landed on Tmall, expanding its marketing model from a single entity store to an electronic business. As of October 9th this year, the number of fans in H&M Tmall flagship store has exceeded 9 million 600 thousand. In order to improve the stickiness of fans, H&M launched the H&M loyalty program in the Chinese market. Consumers can join members and enjoy various benefits, services and activities. The official said that at present, H&M is implementing China's localization operation and opening up new websites for China, and will continue to attach importance to the development of the Chinese market in the future.
While expanding the electricity business, H&M is also trying to adjust its offline stores. It is reported that H&M closed 140 stores in the global market last year. In the strategic plan, the company said it would continue to optimize its store portfolio, with only about 130 stores remaining. However, it is deduced that the company will further reduce the number of stores. Earlier, Kaljohn Persson, chief executive of H&M, has said that the company is cutting excess capacity in Europe and will reduce the number of H&M stores in the European market this year.
Earlier, foreign media broke out that in order to deal with inventory, H&M will burn a lot of clothing every year, which will also cause environmental pollution, the company once questioned. In order to change the consumer's impression of H&M, last year, H&M launched a discount e-commerce platform Afound, specializing in the sale of discount fashion products to solve the inventory problem. In August this year, H&M launched the clothing rental service and garment sewing business. H&M said that carrying out garment leasing and sewing business is an important step towards sustainable and circular development.
It is worth noting that H&M also realized that its own products alone had been unable to meet the growing consumer demand of consumers and began to close to the design sense. Recently, H&M launched a series of ANGEL CHENxH&M cooperation products, inspired by Chinese Kungfu, and made Chinese costumes. According to the person in charge, the series is the first H&M series to cooperate with Chinese designers. In the future, more products will be produced in line with China's local cultural products. Prior to that, H&M also launched products that collaborated with Japanese designers, which once triggered consumer buying upsurge. In order to attract more consumers, H&M launched the new Internet platform Itsapark beta in April this year. Consumers can exchange ideas and suggestions on fashion modeling around the platform.
Selling other clothing brands also seems to be a step in the new H&M strategy. In September this year, H&M said on a recruitment website that it would open up to external brands to increase brand vitality. On the H&M side, the complementarity between external brands and internal brands is expected to attract new consumers. This is a new attempt by H&M.
In fact, after the overall decline of the fast fashion industry, all brands are adjusting their own development strategies in order to save the declining trend. Some analysts believe that timely transformation, and seize the electricity supplier in line with the H&M globalization and rapid sales strategy, brings the group a new round of rebound, and also brings more possibilities of brand promotion and sales.