H&M hat in China heimlich seine Strategie geändert.

The "Mere Exposure Effect" in psychology refers to the phenomenon that the more frequently people are exposed to a certain thing, the lower their sensitivity to its changes becomes, and they may even fail to notice the changes that should be obvious.

This theory can be used to explain the situation of H&M in the Chinese market. As a well - known international fashion brand, H&M was not only a regular in the wardrobes of many people born in the 1980s and 1990s, but also a fashion initiator. The crazy memories of snapping up co - branded items in those years seem like it was just yesterday. However, perhaps it is this long - accumulated familiarity that has made consumers unconsciously ignore the quiet transformation path that H&M has embarked on.

Recently, when the large red advertisements occupied the Jialidu Building on Huaihai Road in Shanghai, when the official H&M flagship stores appeared on emerging e - commerce platforms such as Douyin and Pinduoduo one after another, and when the new product launch speed of the stores accelerated and the design sense of new products was significantly improved, this once - familiar Nordic fashion brand is quietly but profoundly reinventing itself in China.

Bigger stores, and more attentive

On May 22nd, the flagship store of H&M in Beijing's Youtang Shopping Center reopened after renovation, marking an important step in H&M's global store renewal plan in the Chinese market.

H&M's store strategy can be summarized as "closing old stores and renovating others" - closing old stores in poor locations with low profitability, upgrading the remaining stores, and building brand flagship stores with larger spaces and better experiences in core business districts.

When entering the new Youtang store, the most obvious change is the change in the display method. The previously crowded space now has more seasonal displays and matching suggestions. The more spacious space makes it easier for customers to find their favorite styles, which naturally helps to increase the try - on rate.

The optimization in details is also remarkable: the fitting rooms are more spacious and bright, no longer filled with clothes to be sorted; comfortable seats and fashion magazines are added in the rest area; there are more plush toys from H&M HOME in the jewelry area, catering to the current young people's demand for emotional consumption. The cashier desks are getting smaller and are cleverly placed at the deepest part of the store, leaving more space for customers.

"The brand - new upgrade of the Youtang Shopping Center store is not only a renewal of the physical space, but also our firm commitment to the Chinese market - to provide consumers with diverse and high - quality fashion products and a high - quality shopping experience." Saed El - Achkar, President of H&M Group's Greater China Retail, described it to us like this.

The flagship store on Huaihai Road in Shanghai, which is scheduled to reopen in September, will be the culmination of H&M's store renewal concept.

The flagship store on Huaihai Road in Shanghai will become H&M's first and only "H&M House" store in China. All H&M categories (including HOME) will be displayed here, and a flower shop, a coffee shop, and a museum will also be opened as places to showcase H&M's brand culture.

"In Shenzhen, we will also open a similar flagship experience store. We call these stores 'experiential flagship stores'. We hope to find more such stores in key Chinese cities in the future. We don't focus on the number of stores because the number will always fluctuate. We pay more attention to quality, especially in terms of consumer experience." Saed El - Achkar added.

The store transformation of the H&M Group started about four years ago. After a series of dynamic adjustments to the stores, in 2023, the group announced that it would reduce the number of store closures in the future while continuing to expand new stores.

As of early 2025, H&M, the largest brand of the group, operates 3,742 stores in 78 markets globally and conducts online business in 60 regions.

When we asked if the store strategy in the Chinese mainland has shifted back to expansion, Saed El - Achkar emphasized to us that expansion is continuous, but not necessarily measured by the number of store openings and closures. "Now we focus more on the existing stores to ensure the efficient operation of the store portfolio." He further said, "I can't answer about the brand's actions on a global level, but I'm sure no company will say it's the same as it was 10 years ago. I mean, simply comparing the number of stores no longer makes sense."

Anytime, anywhere, but not just about buying: H&M's new digital narrative

In March this year, a fashion consumption revolution took place at Charli XCX's concert. When fans found that they could instantly buy the full H&M look worn by the idol with just a tap on their phones, this seemingly ordinary star collaboration actually revealed the digital transformation that H&M is undergoing.

The official cooperation between Charli XCX and H&M flooded the New York Times Square.

"Consistent, seamless, all - time and all - domain", these three keywords outline the brand's transformation blueprint. "Digitalization is of course a sales channel, but also an extension of brand storytelling. We are committed to transforming the brand charm that can only be experienced offline into surprise moments in the digital world."

This transformation is also a microcosm of the paradigm shift in the entire fashion industry: from regarding e - commerce as a convenient "online shelf" in the early days to building a 24 - hour digital emotional connection nowadays, fashion brands are rewriting the interaction script with consumers.

At the beginning of this century, the main trend in the global fashion industry was the shift towards "fast fashion". This shift relied on more efficient manufacturing processes, the increasing consumer demand for more trendy styles, and the lower costs and prices brought by the efficient supply chain - all of which allowed consumers to easily update their wardrobes regularly.

Data shows that from 2000 to 2014, the global clothing production doubled, and the time consumers kept their clothes was also halved, which marked that fashion trends were evolving at a faster pace.

The explosive development of e - commerce further catalyzed this trend. The rise of pure e - commerce fast - fashion platforms such as ASOS and Boohoo posed severe challenges to traditional brands that relied on physical stores in terms of reaction speed. This transformation once led many fashion brands that failed to transform in time to get into trouble in China. They closed their offline stores or even withdrew from the Chinese market.

H&M started to layout its online sales channels early on, mainly using the self - operated model, covering platforms such as the official website and WeChat mini - programs. This self - built e - commerce platform enables H&M to have a high degree of control over its online stores.

In 2018, H&M followed the trend of "new retail" and entered the third - party e - commerce platform Tmall for the first time. The number of visitors reached tens of millions in the months after its entry, which also significantly boosted the sales in China that year.

After the pandemic, consumers' desire for fresher and higher - quality styles has reached a new level. The once "seasonal purchasing" has changed to "real - time updating", which also requires brands to have 24/7 digital sales capabilities and a product iteration speed of weekly new product launches.

A report released by McKinsey & Company in 2023 showed that the fashion industry is changing from the traditional seasonal release model to continuous and frequent small - scale new product launches - brands need to adapt from the seasonal release model to the "see - now - buy - now" purchase model.

It can be said that H&M was once cautious in its third - party digitalization process, but now it is significantly accelerating its pace. On October 24th last year, H&M announced its entry into Pinduoduo, becoming the first international fashion brand to land on this platform; in November, it opened a flagship store on Douyin. H&M revealed to us that the sales figures of the two new channels have "exceeded expectations".

Regarding the balance issue after adding new third - party channels, Saed El - Achkar told us that except during major promotion seasons when it cooperates with the platform's full - reduction measures, the price difference between online and offline will not be too large at other times. "We ensure that the discounts throughout the year remain consistent to a certain extent."

Now, the official website hm.com is more like a window for brand image display. We found that in addition to providing online - exclusive styles on hm.com, more effort is put into the product display on the homepage. It is not just a simple modular display, but more seasonal and changeable, which is more obvious on the official website pages of other countries and regions.

"In 2025, H&M will continue to invest in physical stores and digital stores at the same speed as in 2024," Daniel Ervér, the Group CEO, told investors at the earnings conference. "We will provide more inspiring experiences and optimize our store portfolio to achieve continuous profitability and growth."

"Design return": From co - branding frenzy to regular high - end line layout

"Everyone can wear the original designs of brand designers" was the tone set by H&M. The annual brand - designer co - branding, which almost became a regular event, was a tool to strengthen this positioning.

Now, H&M chooses to turn its design ability into a regular one: it launches co - branded limited - edition items in the form of Drops at a high frequency, and at the same time, cooperates with more local designers regularly. It streamlines the process in internal communication to present the design results in the form of products in stores at a faster speed.

"In the past, people may have remembered H&M as a retail brand. In the future, we want to highlight our forward - looking nature in the fashion field more." Saed El - Achkar said.

In October last year, H&M launched the GARÇON BY GARÇON co - branded series with Chinese designer Tang Dayun and had its premiere during Shanghai Fashion Week. Andreas Lowenstam, the person in charge of H&M's China Design Center, emphasized in an interview, "We have always hoped to expand the possibilities of the fashion industry with creative local design talents, bring more attention and support to the new generation of Chinese fashion forces, and at the same time integrate into Shanghai's fashion culture scene to better meet the diverse needs of consumers." And Shanghai Fashion Week is just the right platform.

In addition to regular cooperation with local designers, H&M has also accelerated the launch of new products in the The Studio series in recent years. The H&M Studio series is a limited - edition series created by H&M's internal design team, which reflects outstanding design and fashion sense. Now, H&M Studio has entered its twelfth year. It will continue to update the existing model and reshape the creative framework, becoming the overall concept of many exquisite series and opening a new chapter in fashion.

Increasing the proportion of the Studio series and strengthening cooperation with local designers to improve the overall design quality of the H&M brand echoes Daniel Ervér's overall vision for the brand - to create a unique middle ground between ultra - fast fashion and high - end brands, and to reshape the brand's value positioning by improving design ability and scarcity.

"The new competitive environment requires us to respond faster, but the truly affordable fashion design is something that enterprises relying on low costs cannot achieve." Ervér once said.

This view reveals the new competitive logic in the fashion industry - under the new trend of the flow of European design talents, more and more top designers like Jonathan Saunders (note: he was just appointed as the Chief Creative Officer of &Other Stories last week and was previously the Creative Director of Diane von Furstenberg) are moving from traditional luxury brands to large - scale fashion groups, which provides H&M with a rare talent dividend.

H&M established a design center in Shanghai as early as 2023. Now this center is responsible for designing products more suitable for local tastes. Saed El - Achkar told us that during traditional festivals, the number of products designed and produced locally in domestic stores will increase significantly. As one of the few global markets where H&M integrates "design - production - sales", China has digital advantages that other regions do not have.