Anticipating Chinese consumers’ preference for more expensive labels, Hennes & Mauritz AB, one of Europe’s leading clothing retailer, steps up plans to expand its upmarket Monki and COS brands in Asia.
Initially, H&M will look for locations in Hong Kong for the COS brand as “a testing ground for China,” according to Pernilla Wohlfahrt, head of new business at Stockholm-based H&M. The retailer opened its first Monki outlet in Hong Kong last year.
H&M plans aggressive store openings in China to offset recent sluggish profits. Rival Inditex SA which owns brands, such as Zara and Bershka, has opened 150 stores in China compared with 61 for H&M.
Fast fashion retailer H&M bought out the remaining 40% of FaBric Scandinavien, the owner of the Weekday, Monki and Cheap Monday brands, last November.
H&M sells dresses for less than 15 euros ($20.18), while Monki biker-boots go for 50-euro and duffle coats for 120 euros. Weekday offers 140-euro capes, while COS sells merino knit dresses for 79 euros and leather pants for 250 euros.
“We are seeing very healthy growth across the newer business,” said Wohlfahrt, who oversees H&M’s Monki, Weekday, Cheap Monday, COS and H&M Home units. “All these brands have a great opportunity to grow.”
photo credit: cos