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

In addition to sticking to the main battlefield, international

In January 18th, an internationally renowned fashion retailer from Sweden.

Karl John Persson, chief executive of H&M, confirmed that China will be the largest H&M store 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 15% in China and 12% in the US market.

The analysis from Swedish commercial bank said that China is the most profitable market for H&M.

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.

Persson said that although most large international fashion companies have been stationed in major cities in China, small and medium-sized cities can still be used as expansion targets.

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

At the same time, the speed of the development of major brands in China is accelerating.

According to public data, in the first half of 2011, the number of ZARA stores increased by 10 to around 71, while the number of stores reached 88 by the end of 2011, with more than 20 new stores in the year 2011.

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's revenue reached 7 billion 500 million yuan, and the terminal sales revenue exceeded 10 billion yuan. At the end of 2010, the total number of shops was 3659, of which 690 were direct stores and 2969 were franchisees. 2011 in the first three quarters, the revenue increased 40% to 6 billion 800 million yuan, and the number of stores in the third quarter reached 4500 in 2011.

CIC securities analysis, in 2011, Metersbonwe brand value of 11 billion 500 million yuan.

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."