Afound, the newest outlet and multi-brand formula created by the H&M group, is making its entry in the Netherlands. It will be the first market for Afound besides domestic Sweden.
Outlet formula expanding
The Swedish group's newest subsidiary formula considers the move to the Netherlands to be the first step of a European expansion plan. The concept offers outlet items from H&M chains as well as other brands and even vintage products. Next fall, it will launch a digital marketplace for all of Europe. Physical sales points may follow.
Currently, the formula is only active in Sweden, with both a digital platform and physical stores in Stockholm and Malmö. Those two outlets were launched in June of last year and the combined demand for sales and more sustainable second-hand items have made it a success.
Part of a long-term strategy
"Establishment in the Netherlands is part of a long-term strategy with the ambition to expand Afound out into Europe," H&M Group stated according to Ecommerce News. "Establishment will take place with the launch of a digital marketplace in the autumn of 2019 as the first step."
The chain is hoping to take up a privileged position in the Netherlands, since managing director Joanna Hummel considers Dutch consumers to be smart customers who will welcome the concept of very good deals for products that are already manufactured, such as overstock.