🛒 Afound's Origins and Growth
H&M launched Afound in 2018 as a digital outlet platform to sell discounted items. Initially, it featured both online and physical stores, with the first brick-and-mortar store opening in Stockholm. Afound expanded its offerings to include external brands, as well as H&M's brands like Monki and Weekday. By 2020, it added cosmetics, perfumes, and home accessories. The platform grew to operate online in seven European countries.
📉 Shift in Brand Strategies
The closure of Afound reflects a shift in the retail landscape. Many brands that were part of Afound are now adopting more direct-to-consumer (DTC) strategies. This shift has reduced the need for platforms like Afound, as these brands prefer to sell directly through their websites. This trend led to a decline in the demand for Afound's services, making it unsustainable for H&M to keep the outlet running.
🛍️ Afound’s Unique Offering
Afound was unique in that it offered a mix of H&M’s in-house brands and external labels, all at discounted prices. The platform also catered to a wide range of product categories, from clothing to home accessories. Its competitive pricing and diverse product range attracted a broad audience across Europe. Despite these strengths, the evolving market dynamics and the rise of DTC strategies spelled the end for Afound.
🔚 What’s Next for H&M?
H&M’s decision to close Afound marks the end of an era for the brand. As the retail giant shifts its focus, it will likely concentrate on strengthening its core offerings and enhancing its digital channels. The closure of Afound is a reminder of how quickly market conditions can change and how brands must adapt. The platform will officially cease operations by the end of 2024.
How will H&M adapt after closing Afound?
