“Smashing the pot while eating”, H&M has recently experienced the “revenge of the world”.
On July 1, H&M announced its second-quarter financial report. Data showed that its second-quarter sales in mainland China fell by 28% compared with the same period last year, with a loss of US$74 million (approximately RMB 479 million). After the financial report was released, H&M’s stock price fell about 2% in European midday trading.
In this regard, the “Wall Street Journal” stated that compared with H&M’s global sales of US$5.4 billion, US$74 million is just A small loss, but a major blow to a rapidly growing market.
This means that the Chinese mainland market ranks sixth in the H&M global market. However, in the first quarter of this year, mainland China was H&M Group’s third-largest market after the United States and Germany, accounting for about 6% of the company’s sales. It was also the only major market where H&M’s sales increased during the epidemic.
Helena Helmersson, CEO of H&M Group, said that there are still about 10 stores closed in mainland China. She declined to comment further on the Chinese mainland market, saying only that “as far as China is concerned, the situation remains complex.”
In March this year, it was revealed that H&M Group had issued a statement last year boycotting Xinjiang cotton, triggering an earthquake in public opinion.
HM’s statement on boycotting Xinjiang cotton
In March this year, it was revealed that H&M Group had issued a statement last year boycotting Xinjiang cotton. One comment caused an earthquake in public opinion. Faced with the strong dissatisfaction of Chinese netizens, H&M not only failed to apologize, but instead argued that the relevant actions “do not represent any political stance.”
Once the incident was exposed, subsequent search results on Taobao and Tmall APPs showed that all searches for “H&M” or “HM” had no results and were blocked and removed from the shelves. In addition, other e-commerce platforms are no longer able to search for “H&M” stores and products.
To this day, H&M stores and products are still off the shelves on major e-commerce platforms such as Taobao and JD.com, and searches show zero. There are about 10 of them in mainland China. The store is closed. Such a result is purely self-inflicted.
In addition to closing stores, H&M has also been caught in a “storm of public opinion” several times in China where it has been subject to administrative penalties due to product quality issues.
According to investigations, from June last year to May this year, H&M was found to have 9 batches of dyes for children’s clothing containing harmful substances that may be absorbed by the body through the skin, mouth, etc. , harmful to health.
Moreover, according to Tianyancha data, since 2021, HM has been administratively punished 5 times in total. The products it produces and sells are adulterated and fake, and fakes are passed off as genuine. There are still The problem of shoddy goods. He was ordered to make corrections, his illegal gains were confiscated, and he was fined a total of more than 600,000 yuan.
Reading extension:
HM was punished again!
Qichacha APP shows that recently, H&M has been subject to administrative penalties again. The type of illegal behavior is that the production of children’s clothing does not meet the national standards for protecting human health and personal and property safety. A fine of RMB 134,250 was imposed and illegal gains exceeding RMB 30,000 were confiscated. It is reported that HM had previously been ordered to make corrections for failing to declare product ingredients.
H&M: Because the shirt’s friction fastness failed to meet the standards, it was fined more than 133,500 yuan
Picture: Weibo @HMChina
The administrative penalty decision issued by the Shanghai Putuo District Market Supervision and Administration Bureau shows that H&M The shirt model number 047400 of the affiliated company Haynes Morris (Shanghai) Commercial Co., Ltd. was inspected and found that the color fastness to rubbing did not meet the relevant standards and was judged to be unqualified. The bureau opened an investigation into the company on November 11, 2020.
Picture taken from H&M official website
After investigation, Haynes Morris purchased shirts that were substandard products and passed off as qualified products. 374 pieces, the sales unit price is 129 yuan, 373 pieces have been sold out, the sales amount is 48,117 yuan, and the remaining 1 piece is a sample product for sampling. The value of the shirt was 48,246 yuan, and the illegal income was 37,035.17 yuan.
The Putuo District Market Supervision Bureau stated that the company’s behavior violated the “Product Quality Law” “Sellers sell products,…”No adulteration or adulteration is allowed, no fake products are passed off as genuine, no substandard products are passed off as good products, and no substandard products are allowed to pass off as qualified products.”
January 25, 2021 , the Putuo District Market Supervision Bureau decided to impose a fine of RMB 96,492 on the company, confiscate the illegal income of RMB 37,035,17, and confiscate a shirt with the illegal sales number 047400 that was passed off as a substandard product as a qualified product.
It is worth noting that this is not the first time H&M has been fined
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Not long ago, on January 20, the company was confiscated by the Shanghai Huangpu District Market Supervision and Administration Bureau for “making false or misleading publicity about goods or services.” Illegal gains of 102,505,530 yuan and fines of 307,516,590 yuan.
Looking at the national enterprise credit information disclosure system, we can find that the penalties H&M received are far more than those on January 20 and 25. Twice. As early as 2016, I have been punished many times for adulterating or adulterating products produced and sold, passing off fake products as genuine, passing off substandard products as good ones, or passing off substandard products as qualified products.
Picture: Screenshot of the National Enterprise Credit Information Publicity System</p
