H&M announced on Sunday, May 28, that the Swedish fast fashion brand would close its flagship store in Beijing’s Sanlitun area on June 11 as the lease contract is set to expire.
H&M’s PR department stated that the brand would later pick new locations in Beijing and other Chinese cities.
Covering an area of over 1,200 square meters, the store is one of the largest in China. It is H&M’s 200th store in China and is therefore set to mean a lot to the brand.
A lot of changes are currently happening in the fast fashion industry in China. In addition to H&M, many fast fashion brands have adjusted their marketing strategies in the country in recent years.
Zara closed its stores in several cities in China last year, including Beijing and Shanghai. Gap sold its business in the Chinese market to Chinese brand Baozun, while its sub-brand Old Navy officially withdraw from China in 2020.
“The competition in the Chinese market is fierce. China’s economic development level is constantly improving. The consumption power of its residents is also improving,” said Wang Peng, a researcher at the Beijing Academy of Social Sciences.
“They don’t belong to high-end brands and are less competitive in cost performance than some online brands. Their positioning is rather embarrassing,” Wang added.
Source: ecns.cn
