H&M Was Defeated In Korea, UNIQLO And Zara Are In The Limelight.

Swedish fashion brand last year

The operating profit in Korea has been greatly reduced.

Critics claim that H&M's products are not in line with the local consumers' aesthetic standards.

H&M argues that the main reason for the sharp drop in profits is blind expansion and excessive investment in new branches, rather than consumer dissatisfaction with products.

According to the March 8th report, according to the Financial Supervisory service (FSS), H&M lost its operating profit in 2014 to 3 billion 300 million won (about 3 million US dollars), and the difference between 2013 and 6 billion 200 million won was huge, although the sales revenue of H&M increased to 138 billion 300 million won in 2014, while 2013 was only 122 billion 600 million won.

After reaching its peak in 2012 (operating profit of 13 billion 400 million won), H&M's operating profit has declined for two consecutive years.

The decline in H&M's performance has been in the expanding brand of Japanese Uniqlo and Spain.

In sharp contrast, these two brands are the main leaders of the low price casual wear market.

In recent years, the sales and operating profits of both companies have increased strongly.

The expansion is even more rapid.

According to FSS, in recent years, UNIQLO's operating profit has increased by an average annual growth rate of 34%, while Zara is 11%.

The fashion industry insiders say that as the third biggest brands that are only Uniqlo and Zara, the gap between H&M and them is bigger and bigger. Although H&M is trying hard to catch up, it seems very difficult.

Another analyst said that in recent years, H&M has been opening new branches on a large scale, but sales revenue is often lower than expected.

At present, H&M has 21 branches in Korea, 4 of which are just opened last year.

However, a spokeswoman for H&M news said, "there is no problem in the operation of the company. The negative evaluation of the company is unfounded.

The company's large-scale expansion seems to cause concern outside, but H&M has strict management measures, and the primary goal is to achieve sustainable development.

At the same time, the H&M product spokeswoman denied the claim that the H&M product design was too European, and said: "although H&M does not have production facilities and R & D centers in South Korea, it does not mean that the company does not include the fashion trend of the market and the preferences of Korean consumers in the scope of product production and design.

Instead, we are doing our best to provide Korean consumers with the best quality products. "