H&m's share price was the lowest since 2008, with three ways to save itself in 2018

H&m's share price last time was so weak that it was the 2008 financial crisis.

January 31, the fast fashion brand H&m released the fourth quarter of 2017 earnings, in the 3 months ended November 30, the total sales of SEK 58.481 billion, a year-on-year decline of 4%.

H&m also revealed that total sales rose by only 1% in December 2017 and January, meaning that quarterly sales in the first quarter of the 2018 year were likely to be the lowest growth in 10 years. In addition, RBC analysts believe that 1% of sales growth means that H&m's total revenue will be a single-digit decline.

After the earnings, H&m shares fell 8%, the lowest value in 9 years.

In fact, after the wayward race, 2017 years of fast fashion brands have fallen into the "exhaustion period." Even in the Chinese market, where expectations are high, fast-growing foreign-fashion brands are slowing the pace and sales growth.

Just two weeks ago, foreign media reported that C&a, a fast-fashion brand from the Netherlands, was looking for a sale "to accelerate development opportunities in emerging markets such as China", and Forever21 closed the country's first iconic store in early January. And without printing good products and excellent Uniqlo, respectively, through the expansion of many industries and breakthrough products to find new growth points.

Raymond James analysts believe that the decline in h&m sales will also lead to changes in the business model.

H&m CEO Karl-johan Persson said in earnings reports that the rapid changes in the fashion industry in 2017, the company made some mistakes, sales fell in some areas, physical stores did poorly, but the new brand was welcomed by consumers. He revealed that, in 2018, H&m will continue to save itself through three aspects: providing a better consumer experience, investing in new technologies, increasing efficiency and a more diversified brand portfolio.

In 2018, H&m will slow down its shop and is expected to add 390 offline stores (last year's 479). In addition to offline stores, H&M will expand the electric business also as a focus of work, particularly in the financial reports that this March, H&m's cat flagship store will be online, Karl-johan Persson stressed that the cat will help further tap the potential of Chinese consumers. Earlier, H&m and the cat said that the two sides will also explore more new retail cooperation in the possibility of opening up the line under the system.

With the development of digitalization, a batch of h&m fashion brands, which can be on the new 4,500 per week, is threatening the children. Therefore, in the technical aspect, the h&m will increase the investment, lets the supply chain be more nimble to meet the consumer's demand faster. At the same time, the use of cloud computing, RFID and the technology to improve consumer experience.

Whether it's h&m and Uniqlo, the multi-brand strategy is considered a very important part. Uniqlo founder Yanai has said that to continue to grow, multi-brand is the only way. H&m is also planning to deliver brand different images through multiple brands, attracting different types of consumers. This year h&m will open its first discount brand Afound, mainly selling its own brand and the external brand of men and women outfit. In the 2017, H&m has launched a high-end brand arket similar to the Cos, and has also been preparing for a custom brand with KOL cooperation.

February 14, H&m will further announce the transition plan, waiting for the 2018 big test.