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By Cathy Rose A. Garcia
Staff reporter
Swedish fast fashion giant Hennes & Mauritz (H&M) has only been operating in Seoul for barely four months, but the huge success of its first store in Noon Square, Myeong-dong, has prompted the company to expand quickly.
H&M, the world's third largest retailer by sales, will be opening a second store on Joong-ang street, Myeong-dong in September and a third store at the International Finance Centre Seoul Mall in Yeouido next year.
The company's decision to expand is considered a sign of its confidence in the highly competitive Korean market.
Its first store opened in late February with thousands of shoppers queuing for hours to get inside, and since then, the crowds have not thinned. With an area of 2,600 square meters on four floors, H&M has managed to lure Korean shoppers with its business concept of ``fashion and quality at the best price.''
``Ever since the opening of our first store in February, our brand is highly appreciated by many customers, which is why we think our launch has been quite a success. The fact that we will be offering the latest fashion at reasonable prices in the IFC Mall is very exciting. Our goal for the future is to do our best so our customers can easily find us in many different areas," Hans Andersson, H&M country manager for Korea, said.
H&M's success in Myeong-dong is particularly sweet, since the popular shopping district is packed with its rivals ― Spanish brands Zara and Mango, Korean-American-owned retailer Forever21 and Japanese giant Uniqlo. The second store in Myeong-dong, with 1,600 square meters on five floors, would ease traffic in the first one.
“We are now convinced that we can offer our customers added value through fashion and quality at the best price plus high design skills at another top downtown location. In addition, we can divide pressures of store traffic from the first store to the second so that we can provide a better shopping experience to our customers,’’ an H&M Korea spokesperson said.
However, the move to open a store in Yeouido may seem risky since the IFC Mall is not exactly considered a hip place. It will be considered a true test of H&M's broad appeal in the Korean market.
The store, which will also feature H&M's trademark mix of trendy and fashionable pieces, will open at IFC Mall in late 2011. It will have a floor area of 2,500 square meters on two floors.
Other fast fashion rivals Zara and Mango may have expanded quicker than H&M, but the two brands have benefitted from their strategic partnerships with retailers Lotte Shopping and Cheil Industries respectively.
H&M has held its own, as it delivers the latest trends and fashion styles to its Myeong-dong store every day, which keeps customers coming back for more.
The H&M Group, which was founded in Sweden in 1947, now has 2,000 stores in 37 markets. In 2009, sales hit 118.69 million Swedish kroner ($15.8 billion).
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