H&M is planning to expand its Asian reach by launching new stores for its smaller brands Cos and Monki.

The world’s second largest clothing retailer is looking for locations in Hong Kong where it can establish shops for the two brands which are positioned at a price point above H&M.

“Hong Kong could be a testing ground for China,” Pernilla Wohlfahrt, head of new business at Stockholm-based H&M said.

H&M has expanded rapidly in China. Just a year ago, the retailer established first Monki outlet in Hong Kong. For last the five years, H&M has opened 61 stores in China while rival Inditex has 150 stores.

“We are seeing very healthy growth across the newer business. All these brands have a great opportunity to grow,” Wohlfahrt said.

However, this year, H&M has only opened 10 stores for its new brands compared to 30 last year.

“We expanded very aggressively last year, and we took things a little more slowly this year. We can start growing again,” said Wohlfahrt.

H&M acquired 60 per cent of FaBric Scandinavien, owner of brands Cheap Monday, Weekday and Monki. Since then, it tripled the three brand’s number of stores worldwide making it to 69.

GB