Nestled in the pulsing heart of Seoul’s vibrant Myeong-dong shopping district, H&M’s concept store isn’t just another retail outlet but a bigger part of the group’s bet on Asia. “We have been very much focused on enhancing and elevating our customer experience, and we’ve done a couple of innovative things,” Aneta Pokucinska, MD of the East Asia region at H&M, told Inside Retail. “We have introduced services where customers can track down real-time
-time where a product can be found on the shop floor through the RFID solutions. You also can explore a fantastic opportunity by going to a fitting room and finding products online directly, or also clear your items while being in the fitting room.”
Among the first globally to showcase H&M’s new concept, the 1580sqm store spans six floors and features an immersive fitting room that offers a 360-degree visual and auditory sensory experience, allowing customers to immerse and express themselves by creating and sharing stories with various moods.
Meanwhile, the smart fitting rooms and mirrors automatically identify customers’ products and allow for additional colours or sizes to be requested and brought to the fitting room cabins by a sales advisor.
“In one of our stores, we also have social fitting rooms where you can explore six different themes and take photos for social media with these themes – in this case, from Korea, including Jeju and K-pop. You can have fun, maybe with your friends, so that you leave with some great memories and moments from the store. So there are quite a lot of great opportunities, very much focused on customer convenience, but also experience,” she said.
The executive said the customers’ response to the opening was positive with the hundreds of customers queued up on the opening day in May.
“There’s been a lot of curiosity from customers who are familiar with H&M in different markets and are eager to visit this innovative store,” she said.
“We also have a similar format in Japan, in Harajuku. We have plans to roll out these features and customer experiences in different Asian countries.”
The company currently operates more than 250 stores across key markets such as South Korea, Japan, Singapore, Malaysia, Vietnam, and the Philippines.
Cultural differences and fierce competition
The Asian retail market, particularly in countries like South Korea, Japan, and China, is characterised by its dynamism, technological innovation, and fierce competition. International retailers like H&M are not just competing with local brands, but are also navigating complex cultural nuances and rapidly evolving consumer preferences.
“It’s incredible to witness the trends emerging here, largely inspired by Korea. The way consumers dress in this region is strikingly different from the rest of the world. Even more fascinating is the influence these trends are having globally,” Pokucinska said.
“There’s always something fresh happening, whether it’s related to the retail experience – with new stores opening and brands approaching their store setups differently – or developments in digital and social channels.
“It’s not just an Asian phenomenon; it’s scaling up and spreading to other markets. From a fashion perspective, the trends and customer styles here are vastly different from what I’m accustomed to in Europe. The influence of Korea on other Asian markets is particularly significant.”
While the region offers numerous opportunities, Pokucinska acknowledged that it also presents a unique set of challenges.
“Asia is so different between countries, and I think it comes with so many opportunities, but also with challenges,” she said.
“We have also been wanting to make sure of how we deliver collections and experiences to customers that are well-appreciated across the countries in Asia, while at the same time making sure that this is relevant for our customers in Singapore, the Philippines, Malaysia, and Vietnam, so that the local nuances are also met from a cultural perspective, from the trends perspective, and what the customers are looking for in terms of convenience.”
Localisation
Localisation is a crucial strategy for Western brands aiming to succeed in diverse Asian markets. For H&M, this means going beyond mere translation of marketing materials.
“Social platforms like Instagram and TikTok are flourishing, and that’s where we showcase our content. Simultaneously, we’re tapping into local brands that have been evolving. Some once-small brands have now grown significantly, and we love collaborating with them. Our mission is to liberate fashion—to make it accessible to everyone,” Pokucinska said.
Earlier this year, H&M partnered with Korean designer Rokh Hwang, which she described as “an amazing success in all Asian markets and globally”. The company also partnered with Don’t Blame the Kids and Garapata in the Philippines.
“We have also done quite a few campaigns using our local models and harnessing the energy of Asia, as well as its influence and trends because it appears very differently than many other campaigns that we are doing globally,” she said.
Pokucinska added the company is working on constantly making sure that the sizes fit the local markets.
“A few years back, we made adjustments considering different body types, sizes, and fits. We have adjusted both the length of our tops and bottoms, and we are continuously improving on this because, being in the Asian markets, there are differences. That’s also one of our focuses: to deliver to our customers and constantly update our fits and sizes. But also, in many ways, we are improving our experience by guiding the customer, because we know that customers need guidance and information about our products to understand the length and shape of the product, so they can make their decisions easier,” she said.
While H&M has made significant strides in adapting to Asian markets, the company recognises that there’s always room for growth and improvement.
“We have ambitious plans for Asia. The industry here is incredibly dynamic, offering numerous growth opportunities. We’re tapping into cultural potential and expanding our physical presence. There are still areas in some Asian countries where we don’t have stores, and we aim to be there for our customers. Our mission is to make fashion accessible, and we know there’s significant demand in the market. Simultaneously, we’re seeing great potential in our digital channels. We’re very excited about our future growth in Asian markets,” she concluded.
Further reading, ‘Retail is a combination of creativity and analytics’: H&M’s Linda Li.