Afound: H&M's Latest Venture Faces Closure Amidst Low Demand

Wednesday, 21 August 2024, 12:00

Afound's future looks bleak as H&M announces its closure due to insufficient demand. This decision comes as brands prefer their own channels for sales. The platform, initially promising for external brands, will cease operations this fall. H&M's focus appears to shift towards other ventures, especially in sustainability efforts like their investment in secondhand company Sellpy.

Afound: H&M's Latest Venture Faces Closure Amidst Low Demand

Afound's Closure Announcement

Afound's closure has been confirmed by H&M citing low demand as the primary reason. In a press release, the company stated, “There is not enough demand for the platform.” Recently, external brands have increasingly favored their own sales channels, contributing to Afound's struggles.

Background of Afound

Launched with the promise of showcasing excess inventory from various brands.
The first storefront opened in June 2018, following initial reports highlighting H&M’s plans.
Despite initial success, by late 2019, Afound had to downsize its workforce significantly.

H&M's Shifting Focus

While Afound is closing, H&M is deepening its investment in sustainability through their support of Sellpy, a secondhand platform. In just one year, Sellpy secured 175 million in funding largely from H&M.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.