How China, Russia and Shein Have Weighed on H&M’s Profits | WSJ What Went Wrong

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The Wall Street Journal

The Wall Street Journal

Күн бұрын

After decades of expansion, H&M is facing new challenges such as rising competition from rivals like China’s Shein and the impact of the Ukraine war.
The fast-fashion retailer’s attempts to rebound from the coronavirus pandemic have been hindered by geopolitical and economic challenges.
Illustration: Amogh Alva Vaz
0:00 H&M reported one of its worst years in two decades. What went wrong?
0:48 How the war in Ukraine has affected H&M
1:40 How relations with China have affected H&M
2:28 What competitive advantages do Shein and Zara have over H&M?
3:30 How can H&M recover?
What Went Wrong explores the challenging conditions and decisions that led to a company's downturn.
#HandM #Fashion #WSJ

Пікірлер: 186
@abhaabha7850
@abhaabha7850 Жыл бұрын
I feel like h&m is trying hard to increase their online sales, but it’s very annoying as a customer to see most things that are available online are not available in stores
@Chibicular
@Chibicular Жыл бұрын
Or the opposite. I just bought a coat that was in store full price, but online is "on sale" but not available. So now I'm thinking why didn't I get the sale price then?
@fearless6947
@fearless6947 Жыл бұрын
@@Chibicular well you got 30 days to decide. If it's the same coat and size, then online would be better. I always, for me have to try there clothes in store though. Unless it's socks or underwear
@jaymarx
@jaymarx Жыл бұрын
H&M didnt need to politically anger Chinese to make it start going downhill, when the quality and style was already bad and dated, nothing can stop the train.
@tjr4459
@tjr4459 Жыл бұрын
The quality of clothes they sell now has definitely been on the decline as well. I remember seeing some great stuff in their stores when I first started shopping there, unfortunately not so much anymore.
@vicariouscato9555
@vicariouscato9555 Жыл бұрын
I used to be die hard fan of h&m clothing but their designs recently have been very boring. I find myself more on Shein than traditional stores
@fearless6947
@fearless6947 Жыл бұрын
@@vicariouscato9555 how do you know shein clothes will fit well and would look good on you? I always shop in high street store's. Some items I'm small and some items I'm medium. Some items just don't fit well. In real life, sometimes the item quality, doesn't look too good.
@golonawailus4312
@golonawailus4312 Жыл бұрын
Because they moved their factory away from China to …
@JR-vc4gm
@JR-vc4gm Жыл бұрын
​@@golonawailus4312 it has nothing to do with China. H&M wanted to make clothes with bad quality material to cut the cost.
@vicariouscato9555
@vicariouscato9555 Жыл бұрын
@Fearless i thoroughly check the reviews on Shein first. And see pictures that people have posted, and if i see someone similar to my body type, then i have a pretty good idea of how the clothes will look on me :3
@sixtogonzaga655
@sixtogonzaga655 Жыл бұрын
Filipino here, also stopped buying from H&M its just bad quality. Other companies offer the same price yet better quality ones
@fearless6947
@fearless6947 Жыл бұрын
yes it's so true. I agree. In Taiwan, Net is much better and cheaper. Uniqlo is very good as well, in terms of quality.
@thetriwizardchampion9809
@thetriwizardchampion9809 Жыл бұрын
It’s because the clothes they’re pumping out look like garbage we used to see at Forever21. Like random unrelateable prints, or horrible styles that no one would ever find a situation to wear. I usually find something decent after 8-10 months but everything til then is just garbage.
@ryanwbourquin
@ryanwbourquin Жыл бұрын
also they shrink when washed and fit weirdly
@dywang32
@dywang32 Жыл бұрын
Seriously, large graphic tees? Bart Simpson? Mickey mouse? Snoopy? Do these corporate sites even know what year they're in anymore? Or did COVID confuse them?
@vantruong8495
@vantruong8495 Жыл бұрын
I feel that H&M has stretched out way too much that they lose focus of what they used to be. Just around 10 years ago H&M was almost the only store I shopped at,bc they have fashionable clothes at reasonable price. Nowadays the price is not cheap anymore, but most of the clothes I buy there puff out, fall apart, etc. after one or two washes. The designs are also not appealing anymore. I'm not joking when I say for a few years now I don't buy anything from H&M anymore bc of these reasons
@theshillonggirl
@theshillonggirl Жыл бұрын
I stopped buying long time ago- the quality of clothes is now absolutely horrible !
@homoshmexual
@homoshmexual Жыл бұрын
I just left working corporate at their Americas HQ and it was a mess. Constantly flip flopping, no one follows through on anything, ton of tension between regions and Stockholm. Beyond grateful to be the f outta there. 😅
@aslanalparov1524
@aslanalparov1524 Жыл бұрын
The reason is that now they cost like ZARA but the quality is like it’s SHEIN
@indiranarvaez8670
@indiranarvaez8670 Жыл бұрын
They have to rethink their business model I think things are changing and people ask for environmental responsibility and higher quality for in store brand but if is all online u can have other quality
@Untilitpases
@Untilitpases Жыл бұрын
Zara's trash too.
@TheBooban
@TheBooban Жыл бұрын
@@indiranarvaez8670 can’t buy online because send back all that don’t fit. But actually, even in store, nothing fits. They make one size to “fit” everybody and then you have to tailor them and that costs more than the shirt. So just buy tailored stuff.
@Churros1616
@Churros1616 Жыл бұрын
Yep
@indiranarvaez8670
@indiranarvaez8670 Жыл бұрын
@@TheBooban in general these big brands make things with such a low quality ... I hope that this will change
@geoffreyabubakary605
@geoffreyabubakary605 Жыл бұрын
Bad quality clothes, questionable at best sustainability standards, poor designs, and stores that feel cheap (a plastic fiddle leaf fig is not the same as a real one!) are my reasons rarely going anymore
@The_big_sea_and_a_litte_tree
@The_big_sea_and_a_litte_tree Жыл бұрын
The problem H&M in China is that there are a lot of clothes with higher quality at the same price, so consumer prefer to buy those clothes
@TL-fe9si
@TL-fe9si Жыл бұрын
It's because H&M has to make a political statement about human rights in Xin Jiang. If they had kept their mouth shut, their business in China would've been much better.
@countryboy9695
@countryboy9695 Жыл бұрын
H&M is not changing their designs. Zara is continuously changing it.
@Bob-xb9vx
@Bob-xb9vx Жыл бұрын
H&M was so stupid for making market decisions politically, especially for China case. So losing market was inevitable 😒
@KennyL1
@KennyL1 Жыл бұрын
Big mistake for H&M to get involved into geopolitics.
@richardlee4763
@richardlee4763 Жыл бұрын
Stay away from politics, focusing on business.
@helenarakel3964
@helenarakel3964 Жыл бұрын
You think if they’d stay in russia things would be deferent?
@marleychronic8530
@marleychronic8530 Жыл бұрын
The H&Ms in NYC feel more like showrooms now, I can never find my size unless I order it online. I like that they’re cheap and look good, but they’re heavily pushing online order now.
@thisnthat7760
@thisnthat7760 Жыл бұрын
H&M looks good?? It never looks good in the first place so they losing it
@480brad
@480brad Жыл бұрын
I went to an H and M store two months ago and the staff wouldn’t let me try on anything in the dressing room “due to Covid”. 🤷‍♂️
@CW-rx2js
@CW-rx2js Жыл бұрын
That's weird because covid is over and they allow everyone to try on in the trial rooms...
@weird-guy
@weird-guy Жыл бұрын
In the last 10 year the quality of the clothes are in decline, they need to decide if they want to compete with supermarket clothes/shein/ primark /lefties or if they want to stay and compete with Zara. They want to be bottom of the barrel or they to be good value for the price.
@fearless6947
@fearless6947 Жыл бұрын
a bit of topic here but I think Primark is getting more expensive. It used to be quite cheap 5 to 10 years ago. Because the price was cheap, I didn't have much expectations. socks and underwear is still good but other stuff, not really. The price to quality, don't match anymore imo. Honestly still better than h and m in my opinion. I never once shopped in there. I always just browsed and never tried anything on, you can tell the quality is not there. I'm in my early 40's, so maybe I can tell the quality compared to someone in there 20's. When I was in my early 20's, I didn't know what quality was and made a whole bunch of mistakes. Obviously I can still make mistakes on quality, but its very rare
@weird-guy
@weird-guy Жыл бұрын
​@@fearless6947 Agree with you, but to be honest i dont know if Deteriorate further because haven´t bein to primark in 3 years because we don´t have it in my city ,but the last time that i brought underwear there it fall apart after one year.
@fearless6947
@fearless6947 Жыл бұрын
@@weird-guy primark underwear does get loose after a while lol. It's primark at the end of the day, if it's £1 each, it's fair imo. For me it's the 2 or 3 year mark, but I have over 20 hahaha. I do feel underwear should be chuck around 2 or 3 year, I guess if you hot wash it all the time, you could keep it a bit longer. I think it's above £1.50 or around £2 a pair now. If you havn't been for 3 years, your not missing much
@weird-guy
@weird-guy Жыл бұрын
@@fearless6947 i paid at the time 7.50€ for 3 pairs, they started freying in the elastic part also never happened before.
@OneManOnFire
@OneManOnFire Жыл бұрын
H&M is just low quality one time use clothes with good marketing.
@kennethadler7380
@kennethadler7380 Жыл бұрын
Maybe if they made better clothing
@Shining237
@Shining237 Жыл бұрын
You have admit though - Amazon has had a monopoly for way too long. I'm happy to see they have some competition for a change. Good for Shein 👍
@ihmpall
@ihmpall Жыл бұрын
Yeah they aren’t competing
@david-yc6it
@david-yc6it Жыл бұрын
I bought a $100 coat in hm, and then it broke within half a year
@ljl3373
@ljl3373 Жыл бұрын
Quality of H&M is horrible!
@bigoldye
@bigoldye Жыл бұрын
China does not need such a brand.😂
@n00n1n
@n00n1n Жыл бұрын
That's only 5% of your business it shouldn't be that big of a hit
@fernandogallardo1604
@fernandogallardo1604 Жыл бұрын
The clothes are made cheaply and only can with stand one wash before falling apart. I haven't shop there since a decade and two years.
@indiranarvaez8670
@indiranarvaez8670 Жыл бұрын
That's true H&M got out of china and had all the inventory they had was lost the put some in Korea and Japan but couldn't sell most of the stock and the season change made them lose all of these stocks
@jfncho
@jfncho Жыл бұрын
Buy it nice or buy it twice.
@louistran016
@louistran016 Жыл бұрын
H&M is nice? lol
@danielliaw
@danielliaw Жыл бұрын
H&M products does not worth it's pricing.
@fearless6947
@fearless6947 Жыл бұрын
agree, muh more better options out there imo. You have Uniqlo, zara, (gap (jeans only) and net.
@auraron2359
@auraron2359 Жыл бұрын
Why noone mention about Uniqlo? Uniqlo is the main direct competitor to H&M. Their prices are somehow similar but the quality from Uniqlo is much more superior
@thisnthat7760
@thisnthat7760 Жыл бұрын
Uniqlo direct comp is zara.
@j.trulyrandom
@j.trulyrandom Жыл бұрын
It's high prices - low quality right now
@victorlima8511
@victorlima8511 Жыл бұрын
Cheap clothes!! It's been years since I've brought anything and it used to be my go to
@themagician2062
@themagician2062 Жыл бұрын
This is what happens when companies decide to become “social justice warriors”. If I was on the board I would do everything in my power to remove those who suggest to pull out of Russia. They could’ve kept their operations open and quiet and no one would’ve batted an eye.
@phoenix5054
@phoenix5054 Жыл бұрын
Russia is a minor consumer market. Texas has a bigger economy than Russia.
@ariels8538
@ariels8538 Жыл бұрын
They might face boycott from the west if didn’t pull out from Russia though.
@frenetic1057
@frenetic1057 Жыл бұрын
@@phoenix5054 That doesn't change the fact that Russia is/was their 6th biggest market as pointed out in the video.
@BeMyArt
@BeMyArt Жыл бұрын
Yeah, that's so fun. They go away from Russia to avoid loses and that's seriously negatively influenced their business. Ridiculous😆
@themagician2062
@themagician2062 Жыл бұрын
@@ariels8538 the people that would’ve “boycotted” them never really shopped there in the first place.
@DonLionel
@DonLionel Жыл бұрын
Quantity over quality.
@effortmax
@effortmax Жыл бұрын
Totally looks like an ad for this SHEIN store, isn't it?
@auro1986
@auro1986 Жыл бұрын
how after all these years you understand that there's no difference between what you get at h&m and what you get in flea market is same?
@user-gh2kq6is1r
@user-gh2kq6is1r 5 ай бұрын
How the mighty can fall. Nothing is forever
@AllPureSkill
@AllPureSkill Жыл бұрын
That can’t be how to pronounce Balmain right?
@matteobonanza6173
@matteobonanza6173 4 ай бұрын
H&M weighted on it's own profit back in 2016 when they decided to shift from being high quality affordable basics company to true "fast fashion business" but without vacuous "fashionable creativity" that Zara has. They kept the "boring-basic-standard" design principles of Ikea but lost quality that makes you buy it because it is basic that lasts forever. So they practically went to play in a league that they were never talented enough to play in. Like an excellent European football player went to play American rugby because he thinks he will be excellent there as well.
@zebposada
@zebposada Жыл бұрын
Well, if the clothing you sell is expensive, bad quality and awfully decadent in look, don't expect good sales.
@vancekang
@vancekang Жыл бұрын
The issue is the deign of their clothes is really not that nice
@jorgecarrillo8656
@jorgecarrillo8656 Жыл бұрын
The stuff just doesn’t feel as good as before. Quality has definitely gone down.
@wonton_soup805
@wonton_soup805 Жыл бұрын
The sizes at H&M are too small. In my 20s I was a size 6 (135lbs) I fit everything in the store. Now I’m in my 30s I’m a size 12 (190lbs) I fit nothing in the store. An H&M size 12 fits like a size 8. And they don’t go higher than 12 I believe. I never noticed that all their clothes were cut smaller til I got bigger and suddenly couldn’t fit anything anymore.
@junaidisalam5718
@junaidisalam5718 Жыл бұрын
well, thats what you get when you in to politics... great sanctioning, pull out from one of the major market , R.ussia...
@alexhu01
@alexhu01 Жыл бұрын
when the stores go higher price, lower quality, you will lose customers for sure.
@msmodarresi
@msmodarresi Жыл бұрын
Another reason is that they do not have anything for big or tall people. Just socks probably.
@MCorpReview
@MCorpReview Жыл бұрын
Too much politics in business 👨‍💼
@Digiflower5
@Digiflower5 Жыл бұрын
This is a side note, but they are still making a ton of money. I don't know I've seen companies have a harder time. If I'm off base oops ^^
@reymar4657
@reymar4657 Жыл бұрын
ZARA is better than H&M for fast fashion.
@priscillaferguson267
@priscillaferguson267 Жыл бұрын
👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼. Love me some Shein 😊
@claudecisilvaaachados
@claudecisilvaaachados Жыл бұрын
Wow demais 😃
@ptysme
@ptysme Жыл бұрын
Interesting. They are pretty new in my country but stopped shopping there are the never have an stock and the staff are a little too stand offish.
@mountainman6172
@mountainman6172 Жыл бұрын
They were on life support post 2010 and once The Weeknd cut ties when they made that outrage advertising was the nail in the coffin.
@Andres_Acosta
@Andres_Acosta Жыл бұрын
Bruh imagine waiting 3 hours for clothes jesus….
@PyungKangCho
@PyungKangCho Жыл бұрын
Shein deteriorate after a wash though
@JonasWilms
@JonasWilms Жыл бұрын
It's the next generation of fast fashion, Primark was the first company to introduce wear once and toss clothes.
@fearless6947
@fearless6947 Жыл бұрын
@@JonasWilms primark is not as bad as h&m and shein. Primark can last around 3 years. Shein and h&m maybe a wash. Primark quality is better but not as fashionable as shein and h&m.
@JonasWilms
@JonasWilms Жыл бұрын
@@fearless6947 maybe they have different strategies in different countries? In Germany H&M mostly sells cotton, while Primark is near all polyester.
@fearless6947
@fearless6947 Жыл бұрын
@@JonasWilms I only buy underwear, sock and sleeping jogging bottoms from primark. I never looked at the label lol. These have lasted me more than 3 years. The jogging bottoms after 2 years don't break but become very loose. I end up having to buy an other pair of jogging bottoms. This has happened with other jogging bottoms too, maybe 3 years with others
@easonhuang3849
@easonhuang3849 Жыл бұрын
I would prefer Under Armor, in a heartbeat.
@vilester
@vilester Жыл бұрын
Boycott H&M!
@PJVist
@PJVist 27 күн бұрын
H&M is giving tired!!! It needs to go
@marym7104
@marym7104 Жыл бұрын
Within 2 months!
@jarednovel
@jarednovel Жыл бұрын
Self inflicted wounds
@vladthepistol3974
@vladthepistol3974 Жыл бұрын
They shouldnt have pulled out of countries. Its like shooting yourself in the foot and wondering why it hurts
@cindystoon8396
@cindystoon8396 Жыл бұрын
Start boycotting these companies
@r3dpowel796
@r3dpowel796 Жыл бұрын
They punch their value beyond thier actual value.
@win0044
@win0044 Жыл бұрын
Hm sizing is SO inconsistent. I wanna buy hm online but I just can’t trust it
@richardong6640
@richardong6640 Жыл бұрын
Reason: Prices up, Quality down, Styles down! I support Xinjiang cotton so I stopped shopping at H&M totally! Amen.
@VogueEve
@VogueEve Жыл бұрын
Sustainability Sustainability Sustainability
@marym7104
@marym7104 Жыл бұрын
Within 92,500 views!
@pianemova
@pianemova Жыл бұрын
What I paid for 2 swimsuits in h&m is what I pay for 3 swimsuits, 1 t-shirt and 2 necklaces at SheIn.... Bye bye h&m.
@helenarakel3964
@helenarakel3964 Жыл бұрын
I won’t buy anything if they’ll ever some back to Russia
@seowlingwee4693
@seowlingwee4693 Жыл бұрын
I am a Singaporean. I don't anything from H&M. Lousy quality.
@yeetian2774
@yeetian2774 Жыл бұрын
ZARA is way better than HM. Personal opinion.
@winwar516
@winwar516 Жыл бұрын
Don't know what H&M is everyone going to, but the H&M near me is still the best place to shop
@MrTubesong
@MrTubesong Жыл бұрын
Very ugly design and low quality
@thisnthat7760
@thisnthat7760 Жыл бұрын
Nothing to do with china or russia or whatever(never from these countries but I am sick of hearing ,china this,russia that) but its got to do with poor fashion choices,cheap materials,ugly designs etc, the clothes are horrible
@dingdingdingding2871
@dingdingdingding2871 Жыл бұрын
HnM is just not the vibe.
@tonytoronto1401
@tonytoronto1401 Жыл бұрын
Oh nooo, the Chinese Grandma is boycotting lol
@MinusMedley
@MinusMedley Жыл бұрын
I keep telling the fan boys the US cannot survive on its own...
@Myth520
@Myth520 Жыл бұрын
The design in HM is Just too ugly for me
@camadams9149
@camadams9149 Жыл бұрын
Good. Fast fashion needs to be outlawed period. Sorry, enough think pieces about how terrible fast fashion is. Ban it already
@lchen28
@lchen28 Жыл бұрын
This is Karma.
@thabom9791
@thabom9791 11 ай бұрын
Well done China!!!!
@jayeshratangairi8732
@jayeshratangairi8732 Жыл бұрын
The sole purpose of businesses should be to make money. And not participate in government frictions . Now will the US government support H&M if it goes under cause it lost a significant market like China ?
@lexbraxman9270
@lexbraxman9270 Жыл бұрын
Let H&M get crushed by Shein for talking Western propaganda. Just not worth it. It was their choice.
@michaelyun2407
@michaelyun2407 Жыл бұрын
Both companies made clothing with cheap materials that last a few wash. Shein is worse of the two. Spend more on better quality that will last a long time.
@yogawan3805
@yogawan3805 Жыл бұрын
@@michaelyun2407 it's no brainier because Shein it's "budget" clothing while H&M is more branded. H&M is more worst because it's more expensive but the quality also sucks.
@cnmd1636
@cnmd1636 Жыл бұрын
It has to swallow the consequence of endorse US lie about Xinjian's cotton.
@tgs6027
@tgs6027 Жыл бұрын
Bland clothing Nothing Special overstocked racks
@afrofy2431
@afrofy2431 Жыл бұрын
Use by Clothes 🙊🙈🙉
@Alteland
@Alteland Жыл бұрын
Just buy uniqlo
@tantcx
@tantcx Жыл бұрын
H&M has overpriced poor quality goods.
@proletvladimirova828
@proletvladimirova828 Жыл бұрын
Sorry not sorry H&M clothes are shit…i’ve never liked even one thing. Bad quality and they’re so loose, don’t suit someone tiny like me. The colours…i’m not gonna comment. Shein has a lot of bad quality stuff, but they also make good quality and more interesting stuff(not simple and loose)
@southchum101
@southchum101 Жыл бұрын
UNIQLO
@SexyUndisputed2All
@SexyUndisputed2All Жыл бұрын
Asian fashion and goods always dominated the globe including the USA and Europea specially. Just now china via its use of Asian fashion via the internet and faster shipping has arrived in the "west". Nevrt heard the stories of fashion designers copying fashion from Japan and Korea before?
@qianer6707
@qianer6707 Жыл бұрын
a stupid brand
@hanniffydinn6019
@hanniffydinn6019 Жыл бұрын
Stay out of china politics. !!!!!!!
@nesseihtgnay9419
@nesseihtgnay9419 Жыл бұрын
China does have force labors.
@MrYoshigu
@MrYoshigu Жыл бұрын
All the “force labor” news keep on showing huge tractors…lol
@TMsonjakopp7006
@TMsonjakopp7006 Жыл бұрын
So does every other country honestly. Just take a look at US prison system. It practically slavery.
@nesseihtgnay9419
@nesseihtgnay9419 Жыл бұрын
@TM sonjakopp7006 that's prison, they have nothing to do but sign up, plus US prisoners have the rights to sue or get a lawyer for forcing them to work. Not in China, you have no rights what so ever.
@yogawan3805
@yogawan3805 Жыл бұрын
@@nesseihtgnay9419 yeah Moron, talk that to Guantanamo bay prisoners.
@TMsonjakopp7006
@TMsonjakopp7006 Жыл бұрын
@@nesseihtgnay9419 most incarcerated in the world despite having 1/5 the population of china. With average of 13 cents per hour wage.
@ongsengfook
@ongsengfook Жыл бұрын
Why should China buy from companies against its country and people? Reciprocity. Even Malaysians shouldn't buy their products because their politician burned Quran. Respect must be earned.
@user-bc4tg3hl7q
@user-bc4tg3hl7q Жыл бұрын
В H&M мего-отстойная одежда Она делается сразу на переработку Удивительно как экономия на детском труде и вливание денег на маркетинг, навязывает миру абсолютно некачественную одежду (которая через месяц-два порвётся)
@user-bc4tg3hl7q
@user-bc4tg3hl7q Жыл бұрын
1:00 Ahah, close. Physically, the doors may be closed, but the stores themselves are open all over Russia. And they continue to pay huge rent so as not to lose outlets. So that there is not just a lost profit, but huge disadvantages.
@BeMyArt
@BeMyArt Жыл бұрын
In my city it's closed and new shop opened🤷
@user-bc4tg3hl7q
@user-bc4tg3hl7q Жыл бұрын
@@BeMyArt Да, неделю назад был в Европолисе (Мск), там тоже теперь новый магазин Ну и скатертью дорога ))
@user-bc4tg3hl7q
@user-bc4tg3hl7q Жыл бұрын
@@BeMyArt Но другие бренды свои точки пока держат
@tintincruz8660
@tintincruz8660 Жыл бұрын
Watching this with my Shein shirt 😶
@milesblair-lw2ng
@milesblair-lw2ng Жыл бұрын
One big blow of russia using click button 🇷🇺 Will give justice to mankind
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