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H&M to open flagship store on Alibaba's Tmall platform

H&M Hennes & Mauritz AB plans to open an online flagship store on Alibaba Group Holding Ltd.'s Tmall marketplace in early 2018, according to a Dec. 15 post on the Chinese e-commerce giant's company news site Alizila.

The Swedish retailer said the new store would feature its H&M-brand fashion and home collections. Its street-style brand Monki is already being sold through Tmall.

H&M is also in talks to bring its other brands to Tmall including fashion and lifestyle brand ARKET, denim brands Weekday and Cheap Monday, and boutique-style labels COS and & Other Stories, according to the post.

"Tmall is an important complement to our existing physical and digital stores. We see great potential for substantial future growth, and Tmall will be an important part of this," H&M CEO Karl-Johan Persson said in a statement.

The group has been planning to broaden online offerings across its markets, with an eye toward expanding online sales by at least 25% per year. The company said Dec. 15 that it planned to accelerate its transformation, including continued integration of its physical and digital stores, as it reported disappointing sales in its fiscal fourth quarter.

H&M first entered China in 2007 with the opening of a store in Shanghai. It now generates about $1.3 billion in revenue from the Chinese market through its online channel and more than 500 physical stores, according to Alizila.