H&M marked its grand return to Shanghai‘s all-important Huaihai Road retail artery on Monday with the opening of “House of H&M,” the Swedish retailer’s latest concept flagship.
The six-story corner store holds special meaning for H&M as it was the company’s first mainland China store when the brand entered the market in 2007.
In 2022, the retailer decided to close the store following prolonged backlash after the Xinjiang cotton controversy and weak consumer demand post-COVID-19 lockdown.
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Three years later, the retailer leased the space back from local real estate company Yimin Group at an annual rent of 25.5 million renminbi, or $3.5 million, for the first five years, according to local media reports.
Construction for the store began in early April, transforming the gray brick building into a red superstructure.
“The store started with ‘a crazy idea,’ but it has since evolved into a concept that goes far beyond a traditional retail store,” H&M’s group president of retail for Greater China Saed El-Achkar wrote on Xiaohongshu, China’s popular social commerce platform.
“House of H&M is a real brand center, it combines fashion, inspiration and retail in one, breaking boundaries,” El-Achkar added.
Spanning 32,290 square feet and four floors, the well-lit, minimally designed retail space brings together apparel, home goods, hospitality, a flower shop, and an exhibition space that showcases recent designer collaborations for the H&M Studio line.
The regional head office will be located on the fifth and sixth floors.
A livestream studio, which sits on the ground floor, will become the command center for the brand’s Douyin livestream activities. “Celebrities, influencers, designers and models are invited as special guests to join the livestreams for various brand moments, transforming the studio into a vibrant brand broadcast hub, where fashion meets entertainment and commerce,” El-Achkar said.
Launched in late August, the “House of H&M” Douyin account operates as a separate entity from H&M’s main account, which underscores the importance of the “House of H&M” concept.
Following its grand opening event featuring performances by local celebrities, H&M brought in two top Douyin influencers to double as guest sales associates on Tuesday, drawing crowds and driving buzz.
Long-term plans for H&M stores across China will continue to focus on larger store formats in major retail hubs. This May, H&M opened a 16,150-square-foot store at Beijing’s downtown U-Town Mall. In August, the brand opened its first Southern China flagship at Shenzhen‘s 1764 Space shopping mall.
“Our focus is a healthy store portfolio through selecting key cities across China to open flagship stores and store upgrades, as well as store optimization for continued profitability and growth,” the company said in a statement.
H&M has around 300 stores in the Greater China region.