Is HM Still In The Chinese Market

On March 31, HM, a fast fashion group, released its latest quarterly financial results. According to the data, from December 2020 to the end of February 2021, the company's total sales volume was sek40.06 billion (about RMB 30.13 billion), a decrease of 21% compared with the same period of the previous year. It is worth noting that in the data listed by HM group, China's sales performance ranks the third, and it is a fast and positive growth region, with sales growth of 21%.
It is self-evident that the Chinese market is of great importance to HM's development. However, after the Xinjiang cotton incident, HM is close to losing this important market. Since the outbreak of the cotton incident in Xinjiang, up to now, HM has closed six stores in China, and many stores in Zhengzhou and Chengdu are cold and desolate.
HM naturally knows the significance of the Chinese market. Therefore, along with the latest financial report, it also issued its latest statement on the Xinjiang cotton incident. It is a pity that HM has not learned to be sincere under such circumstances. The statement only mentions the importance of the Chinese market to HM, but does not mention any topics of public concern such as whether to continue to use Xinjiang cotton and whether to investigate the labor problems in Xinjiang. For such a statement, Chinese netizens naturally did not buy it. They accused HM of being less conventional and more sincere.
It has been stated for many times that he is vague and evasive. Obviously, the arrogant HM still doesn't see his own situation clearly. In fact, even without HM's boycott of Xinjiang cotton, fast fashion is inevitably on the decline. Although there was a huge Chinese market barely supporting, the speed of fast fashion store expansion is still much slower.
Moreover, even in the vast space of China's market, the development of fast fashion brands is not smooth sailing, the rise of the national tide is a powerful factor. More and more consumers see the shortcomings of similar styles and poor quality of fast fashion brands. At the same time, Guochao brand with more national characteristics and price close to the people has been sought after by the younger generation. The Xinjiang cotton incident has become a catalyst for the development of the national tide.
The development of fast fashion is weak, and the national tide is rising. In this context, it is conceivable that HM, which does not respect China's fast fashion brand, can no longer catch any Chinese consumers who are patriotic and enthusiastic!