Diverse preferences, sustainability shape Asia’s retail landscape

H&M addresses regional trends, omni-channel growth, and rising sustainability demands.  

The Asia-Pacific retail market, set to contribute over half of global retail sales by 2028, presents both opportunities and challenges for international brands like H&M. Aneta Pokucinska, Managing Director of East Asia at H&M, highlighted the key trends driving the region’s retail sector and the company’s strategies to navigate this.  

“We see the uniqueness and cultural differences between the countries,” said Pokucinska. She noted how meeting consumer expectations for both value and quality while managing rising supply chain costs remains a challenge. “It’s important for us as H&M to deliver exceptional value for money with affordable prices, regardless of rising costs of how we are operating,” Pokucinska added.  

Another significant trend in Asia is the growth of omni-channel retail. The integration of digital and physical shopping experiences is reshaping consumer behaviour, with seamless transitions between the two becoming a key expectation.  

“Digital has been playing a big part, at the same time with physical, but the blend between the two channels and the seamless experience has been very important for us at H&M,” said Pokucinska. She pointed to consumer experiences offered in stores like H&M’s Orchard outlet in Singapore as an example of this transformation.  

H&M’s commitment includes using recycled materials in over 84% of its collections as of 2023 and offering a global recycling program for unused clothes. Looking ahead, H&M’s strategy in Asia centres on three pillars: product, brand, and experience.