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H&M to Close Digital Outlet Afound

The H&M clothing store is seen in Times Square in Manhattan, New York, US, November 15, 2019. (Reuters)
The H&M clothing store is seen in Times Square in Manhattan, New York, US, November 15, 2019. (Reuters)
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H&M to Close Digital Outlet Afound

The H&M clothing store is seen in Times Square in Manhattan, New York, US, November 15, 2019. (Reuters)
The H&M clothing store is seen in Times Square in Manhattan, New York, US, November 15, 2019. (Reuters)

H&M will close down digital fashion outlet Afound later this year due to weak demand, the Swedish group said in a statement on Wednesday.
"When evaluating Afound's current position, we don't see enough demand, partly because brands increasingly choose to use their own channels for sales, to further strengthen their customer relationships," H&M said.
Launched in 2018 as an outlet business with physical stores to sell marked-down clothes from many external brands, Afound later tweaked its strategy to expand online.
Afound sold clothes in seven European countries including Sweden, Germany and the Netherlands, according to its website.

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Zalando to Open Tech Site in China

A woman walks past an Honor sign at the handset maker's headquarters in Shenzhen, Guangdong province, China August 4, 2024. REUTERS/David Kirton
A woman walks past an Honor sign at the handset maker's headquarters in Shenzhen, Guangdong province, China August 4, 2024. REUTERS/David Kirton
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Zalando to Open Tech Site in China

A woman walks past an Honor sign at the handset maker's headquarters in Shenzhen, Guangdong province, China August 4, 2024. REUTERS/David Kirton
A woman walks past an Honor sign at the handset maker's headquarters in Shenzhen, Guangdong province, China August 4, 2024. REUTERS/David Kirton

Zalando said on Tuesday it would open a new tech site in China's tech-hub Shenzhen, but it was not planning to expand its marketplace to China at this point in time.
The Chinese tech center would allow the German online fashion retailer to tap into local expertise in social commerce and integrate that with the company's knowledge of the European e-commerce market, finance chief Sandra Dembeck said on an investor call following Zalando's second-quarter results.
According to Zalando, Reuters said it currently had no plans to expand its e-commerce platform to China.
The company, which serves around 50 million active customers in 25 markets across Europe, has recently focused on higher-priced brands and sportswear as it competes with low-priced retailers such as Shein, introducing its own sports collection and launching sports brands such as Lululemon, Hoka, and On Running in recent quarters.
These premium sportswear brands are seeing robust growth in China, as health and wellness have become a priority for aspirational, middle class consumers since the pandemic, with many people taking up activities such as yoga, hiking and running for the first time.
"We are still focused on tapping into the growth opportunities that Europe has to offer and are sure that our tech site in China will contribute to achieve our goals," Zalando said in an email.