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The encyclopedia · Strategy & Leadership · Strategic decision · 2025

& Other Stories closed every China store — H&M Group's fourth retreat

H&M Group's premium fashion brand closed all China stores by 2025, another casualty of the Swedish giant's long retreat from a market it could not crack

& Other Stories · H&M Group · 2025

What happened

& Other Stories launched in 2013 as H&M Group's higher-end fashion brand, targeting women with feminine, romantic styles at a price point above H&M but below COS. It entered China around 2019, opening its first stores in Shanghai's premium shopping districts and launching on Tmall, joining a wave of international mid-market fashion brands betting on China's growing appetite for Western labels.

By 2025, all of & Other Stories' China stores had closed. The brand was listed among more than 180 retail brands that shut stores in China that year, part of a wave that saw over 15,000 store closures across the country. It joined a growing list of international fashion brands — including fellow H&M group labels — that failed to gain lasting traction in the world's largest fashion market.

The closure reflected a broader structural shift. Chinese consumers had moved on from mid-market international brands toward domestic competitors that understood local tastes, social-commerce marketing, and the fast-changing preferences of Gen Z shoppers. H&M Group itself had been struggling in China since the 2021 cotton-sourcing controversy triggered boycotts, and its brand portfolio — once a pipeline of Western cool — now faced competitors that were faster, nimbler, and Chinese.

Why it happened

  • & Other Stories entered China too late (2019) to build awareness against local rivals that already defined fast fashion through Douyin and Xiaohongshu.
  • H&M Group's China reputation never recovered from the 2021 cotton-sourcing controversy, making it harder for any of its labels to build local loyalty.
  • Chinese consumers shifted from mid-market international brands toward domestic competitors with better price-to-style ratios and culturally resonant marketing.
  • The brand's physical footprint was too small to build the omnichannel presence needed in a market where social commerce drives discovery.
What it costAll China stores closed, market exitcostly

The lesson

A late entrant cannot compete against native brands that already own the customer — and one political controversy can poison every brand under the same parent.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →