告别激进？H&M中国战略变了

Core Viewpoint - H&M is undergoing a strategic transformation in the Chinese market, shifting from rapid expansion to refined operations, aiming to find effective growth paths amidst intense competition in the fashion retail sector [1][3]. Financial Performance - H&M reported a 3% year-on-year increase in same-store net sales for Q2 of FY2025, indicating a recovery in major global markets. The group's net sales for the first half of FY2025 grew by 1% year-on-year, contrasting with a 0.6% decline in FY2024 [1][2]. - Following the financial report, H&M's stock price surged by 7%, reaching a 15-month high since March 2024 [2]. Strategic Adjustments - The company is focusing on optimizing its store network in China by closing underperforming locations and upgrading remaining stores to enhance customer experience. This includes the renovation of flagship stores in key urban areas [3][5]. - H&M plans to accelerate the opening of flagship stores in the second half of FY2025, with ambitious projects such as a 3,000 square meter immersive flagship store in Shanghai [5]. Market Positioning - H&M is transitioning from a traditional fast fashion model to a focus on experiential retail, emphasizing the quality of individual stores over the quantity of locations [5][6]. - The company has recognized the need to adapt to the competitive landscape in China's fashion retail market, where local brands are gaining traction, leading to a significant reduction in the number of H&M stores from over 500 in 2019 to around 300 by the end of 2024 [6]. Online Retail Strategy - H&M is enhancing its online presence by entering platforms like Douyin and Pinduoduo, moving beyond its previous reliance on its own e-commerce channels [6]. - The establishment of a China Design Center aims to incorporate local aesthetics into product development, with plans for 60% of new products in 2025 to utilize traditional Chinese craftsmanship [6]. Challenges Ahead - Despite these strategic initiatives, H&M faces challenges in maintaining market share, with a noted decline in operating profit margin to 2.2% in Q1 of FY2025 due to external factors and increased promotional activities [6][7].