H&M: China is the fastest growing market

Climates differ from country to country, but in terms of fashion, there is no major difference between customers from different countries, he added.

The "democratic fashion" is reflected in the price as well. While there is a small variation due to the exchange rate among countries, the price is the same the world over.

"Many years of experience gives us knowledge of logistics, materials, supply chains, buying in huge volume while not using any middle men, which all help to keep costs low," Persson said. "And compared to the premium brands, we don't charge the enormous margin as well."

H&M, together with Spanish brand Zara, Japanese brand Uniqlo and US brand Gap, are often categorized as the "fast fashion" brands which stress quick turnover of stocks and reasonable prices. These brands have new arrivals every week, or at least every month.

"The international brands have not only seized the premium market, but they are winning over the local brands gradually," said Wang Yao from the Nation Commercial Information Center of China.

According to Japanese clothing company Uniqlo, the target customers of these fast fashion brands are generally between 20 to 35.

The Japanese competitor is also ahead of H&M in terms of the number of stores in China. At the end of August, there were 145 Uniqlo stores in China, and the number is increasing by 100 every year. The company aims for 1,000 stores in China.

Persson said it is difficult to define a "typical customer" of H&M.

"We cater to all styles, as long as you are interested in fashion, and want great value for money.

"If you combine fashion, quality and price, I think we have the best offerings in the market. We have huge variety with so many styles, allowing everyone to dress to their personality."

While keeping the H&M brand accessible to the public, the company is developing different customer segments.

Persson said H&M is also a design company, with 150 designers in Sweden.

"We want to have our own designs. We don't take fashion so seriously, we have fun with it, so we constantly surprise the customers."

Currently, H&M has more than 700 suppliers both in China and Europe.

Although it doesn't face serious counterfeit problems in Asia, like some premium brands do, copies of H&M designs are constantly seen.

"This is something that good brands have to live with. If we do something well, there will be people that want to copy, but at the end, if we do the right thing, customers will want the right thing rather than the copy.

"I think there is still huge potential in China, as there are many shopping malls to open and there is still much for us to do."

wangchao@chinadaily.com.cn

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