China is set to overtake Germany as the largest market for Hennes & Mauritz (H&M), the world’s second-largest apparel retailer, a fashion website reports.
It is because the pace of new store opening by H&M in China is faster than in any other country, Karl-Johan Persson, CEO of the Swedish company, said in a recent interview, Bloomberg reported.
In 2012, H&M opened 52 outlets in China, compared to 22 stores in Germany, taking the tally of H&M stores in Germany to 406.
Mr. Presson said while China’s economy is growing rapidly, Europe is passing through a difficult economic situation, which has impacted private consumption and spending.
The demand for clothing in Europe has declined and H&M’s sales have been seriously impacted in Germany, Greece, Spain, Portugal, the Netherlands, Switzerland and Italy, he said.
H&M is mulling on opening stores in Argentina, Brazil, Colombia and India, while the European demand recovers, he added.