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

Last year, Swedish fashion brand H&M's operating profit in South Korea dropped significantly.

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 Korean times March 8th report, according to the Financial Supervisory service (FSS), H&M in 2014, its operating profit has dropped to 3 billion 300 million won (about 3 million US dollars), and the difference between 2013 and 6 billion 200 million won is huge, although the sales revenue of H&M has increased to 138 billion 300 million won in 2014, while 2013 is 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 performance is in stark contrast to the Expanding Japanese brand Uniqlo and the Spanish brand Zara, the two leading brands in the low price casual wear market.

In recent years, the sales volume of the two companies and

Both are growing strongly, and the expansion in the Korean market is even more rapid.

According to FSS, in recent years,

The average annual growth rate of operating profit is 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,

New branches have been opened on a large scale, but sales are 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. "