The Swedish fast fashion giant, H&M, unveiled a China design hub at the China International Import Expo (CIIE) in Shanghai, this week. The initiative aims to enhance the localization of its products, addressing the challenges of having to cater to the changing preferences of Chinese consumers. A challenge faced by many foreign companies.
In 2021, H&M faced a boycott in China after announcing it would no longer source cotton from Xinjiang due to accusations of forced labor. The decision led to the removal of H&M products from several major Chinese e-commerce platforms. Despite Beijing’s denial of the accusations, the company experienced a nationalist-driven public backlash.
But at the CIIE in Shanghai on Monday, H&M reaffirmed its commitment to the Chinese market. The company announced plans to establish closer connections with its Chinese customers, by adapting its product line to align with their changing tastes and needs.
“Our ambition is to have a local team here in Shanghai. Close to the market, the customers, and our supply chain,” said the head of the Chinese design hub, Andreas Lowenstam.
As of the end of last month, the number of H&M stores in China has dropped to 317. A decline from nearly 500 in 2019.
Source: scmp.com
