H&M to test subscription in China with COS
The group has teamed up with Chinese subscription rental platform YCloset to try renting out clothes in the country. The group has done similar tests with its main brand.
H&M keeps its try-it-all strategy going. The Swedish fashion group has teamed up with Chinese subscription rental platform YCloset to try renting out clothes in the country with its brand COS. The group has already done similar tests with its main brand.
The company first tried rental service this month in its Stockholm flagship. Last April, it also did a pilot test together with second-hand Sellpy, in which it holds a majority stake. However, this is the first time it tries the subscription formula.
“Subscription rental has been on our radar for some time and we feel this is a very relevant model for us to explore,” it said. “It is important for us to try new approaches – testing and collaborating to achieve the best outcome for our customer and community – as well as the future of our business,” COS managing director Marie Honda said in the statement.
H&M first tried rental in its revamped Stockholm flagship store
H&M said YCloset is China’s largest fashion rental platform with 15 million registered users. Users pay a monthly subscription rather than a per item fee and are able to buy the clothing after they have rented it.
H&M ended the first nine months of its fiscal year with net revenues of 171 billion Swedish kroner (18 billion dollars), up 11% year-on-year. The group’s profit stood at 9.2 billion kroner (971 million dollars), up 1.3%. COS was launched in 2007 and its the group’s second-largest concept with an estimated revenue of over one billion dollars.
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