“Smashing pots while eating”, H&M has recently experienced the “reality 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 74 million. US dollars (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, the US$74 million loss is only a small loss, but it is a major blow to its rapidly growing market.
In March this year, it was revealed that H&M Group had issued a statement last year boycotting Xinjiang cotton. This statement 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, Taobao and Tmall The APP search results show that all searches for “H&M” or “HM” have no results and have been 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 the search shows zero. About 10 stores have closed down. Such a result is purely self-inflicted.
Not just closing stores, H&M is still there China has been caught in a “storm of public opinion” several times due to administrative penalties due to product quality issues.
According to the survey, from June last year to this year In May, H&M was found to have 9 batches of dyes for children’s clothing containing harmful substances that may be absorbed by the human body through the skin, mouth, etc., and endanger human health.
Moreover, according to Tianyancha data, since 2021, HM has been administratively fined a total of 5 times. The products it produces and sells are adulterated and passed off as fake. Really, there is still the problem of shoddy products. He was ordered to make corrections, his illegal gains were confiscated, and he was fined a total of more than 600,000 yuan.
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