H&M Leads Fast Fashion Brands To Accelerate China'S Retail Space

In addition to sticking to the main array, the next destination of the international fashion giant was moved to China.

In January 18th, H&M, an internationally renowned fashion retailing giant from Sweden, opened in eighty-eighth stores in China. Its number increased to 24 in 2011 in China.

Data from the Swedish Commercial Bank show that the number of H&M stores in China will increase three times from the beginning of this year in 3 years.

Karl John Persson, chief executive of H&M, replied to an interview with the daily economic news reporter that China will be the largest market for new stores opened by H&M in 2012.

Layout China

With the growth of sales from the Chinese market, the value of China as a strategic market is beginning to show.

According to data from INDITEX group, which owns ZARA and other brands, in the first half of 2011, sales accounted for 17% of the total sales in the Asia Pacific region, of which China

According to the information provided by market research firm Boston Consulting Group, Chinese consumers spend about 1150 yuan per person per year on clothing, only 1/5 of American consumers, but their desire for new clothes is increasing.

The group said that China's clothing sales in 2015 are expected to reach 800 billion yuan.

"Any brand's global strategy will not ignore China's huge market, but these fast fashion brands only focus on the Chinese market."

Yang Dayun, President of UTA Fashion Management Group, pointed out to the daily economic news reporter that at present, fast fashion brands entering the Chinese market are more strategic layout.

The penetration from the first tier cities to the two or three tier cities has almost become the strategic offensive route for all foreign brands.

In a reply to the daily economic news, Persson said that although most large international fashion companies have been stationed in major cities in China, small and medium-sized cities can still serve as targets for expansion.

"H&M plans to expand its existing stores and expand business to small and medium-sized cities."

At the same time, the major brands in China

According to H&M, the number of stores it plans to set up annually is increasing from 10% to 15%. According to this rate, the number of H&M stores will double in the next five years.

Competitive cruelty

At present, the clothing brands are guarding their respective fields. The main position of ZARA is Spain, H&M is Germany, and UNIQLO is Japan.

Even though the center of gravity of these brands has not yet moved to China, Yang said that China's open shop has the size of 5000~8000.

An analyst who doesn't want to be named in CIC pointed out that in the next three years, the expansion rate of fast fashion clothing stores in China will reach 15%~20%.

In the rapid expansion of H&M and ZARA, similar brands are eyeing the Chinese market.

Including GAP, C&A, UR and Muji have joined the enclosure.

"Although there are huge business opportunities in the Chinese market, the competition there will become increasingly fierce."

Persson said, "now we need to make a lot of efforts to succeed in China.

Many businesses are starting to enter this market, so competition will become more intense.

Mr. Persson said so.

In addition to facing the same brand from abroad and standing firmly in China, the rise of Chinese local brands has also become a strong competitor of the above garment brands.

In 2010, Metersbonwe revenue reached 7 billion 500 million yuan and terminal sales revenue exceeded 100 billion yuan. At the end of 2010, the total number of stores reached 3659, including 690 straight stores and 2969 franchisees. The 2011 first three quarter revenue increased 40% to 6 billion 800 million yuan, and the number of stores in third quarter of 2011 reached 4500.

CIC securities analysis, 2011 Metersbonwe

Competition in China's retail space is fierce. Mr. Persson said that customers' love for H&M brand will make the company in a tight position in the competition of retail space.

"The most important thing is the benefits we can bring. If we enter a shopping mall, we can attract customers to the center."