H&M unveils China design hub at CIIE to improve localisation as foreign brands face pressure to meet consumer demands

Swedish fashion retailer H&M has launched a design hub in China in an attempt to better adapt its products to the local market. This move comes as foreign companies are grappling with the evolving preferences of Chinese consumers. H&M has faced criticism in China due to its decision to stop purchasing cotton from the Xinjiang Uygur autonomous region in 2020, which led to a boycott a year later.

Despite the backlash, H&M reaffirmed its commitment to the Chinese market at the China International Import Expo in Shanghai. The company aims to get closer to its customers and adapt to their changing needs. Andreas Lowenstam, the head of the China design hub, stated that the goal is to have a local team in Shanghai, in proximity to the market, customers, and supply chain.

The number of H&M stores in China has significantly decreased, from nearly 500 in 2019 to 317 as of last month. This decline is attributed to the boycott and the company's decision to stop sourcing cotton from Xinjiang. However, H&M is not alone in facing challenges in the Chinese market. Many foreign firms are experiencing increasing pressure to localize as Chinese consumers' needs become more complex.