While the world’s fashion industry suffers a collective attack of self-doubt under the current gloomy economic outlook, Europe’s second largest fashion retailer, H&M has had a resilient first-quarter with sales up 18 percent over the same period last year. How is this possible? The Swedish chain’s “designer cooperation” strategy now seems a symbol of the zeitgeist’s call of “less is more” and has now arrived in Beijing with two stores in Qianmen and Xidan’s Joy City (see below for detailed address and opening hours)– surely this is no coincidence.

Based in a modest brick building in central Stockholm is the so-called “White Room,” where Creative Director Margareta van den Bosch, 66, oversees the more than 100 H&M in-house designers who work with her to supply affordable fashion to the masses. Since taking on the job as creative director 22 years ago, her mission has not wavered – to provide fashion and quality at the best price.

Early on, H&M was regarded as a part of the same group of inexpensive youth-oriented street-fashion labels like Old Navy and Gap – it too was plagued by the “fast fashion” companies that produced even cheaper copycat versions of its clothing. At that time, van den Bosch’s dream that H&M might one day stand alongside the big designer names would have appeared a wild-eyed fantasy.

But this dream became a reality in June 2004 when Chanel’s artistic director, Karl Lagerfeld, agreed to design a collection of 30 pieces for H&M. The collection included a pleated silk skirt retailing for USD 49.90, a little black dress for USD 99.90 and an evening blazer for just USD 129.90. Compared with Chanel’s couture pricing, H&M’s price tags seemed like nothing. Far from being a one-off coup, that successful partnership with high fashion developed into an annual triumph. Guest designers at the label have now included Stella McCartney, Viktor & Rolf, Roberto Cavalli and Comme des Garçons.

It’s fashion democracy. Our brand reaches many more people than they would normally do with theirs,” says van den Bosch as she seeks to explain why such big names have chosen to design for H&M. This spring and summer, H&M’s new partner is British designer Matthew Williamson, who burst onto the London fashion scene in 1997 with a color-drenched collection. His collection for H&M, which will sell exclusively in Beijing at the Qianmen store, includes a bias-cut butterfly print dress with grosgrain straps, an electric blue tuxedo, a metallic jacket and a jacquard bubble skirt.

What also sets H&M apart from other affordable street fashion is its fast rotation of collections. “We deliver new collections to stores every week,” van den Bosch says. It takes only three months for an item of clothing to go from the drawing board to store shelves. But copying from other designers is strictly prohibited in the H&M team. “We look at people in the street and in clubs or watch TV, movies and many other things to get inspiration. Then we establish the H&M general trends for a season.”

H&M’s “designer cooperation” tactic seems completely in tune with the times, as fashion magazines and experts preach about the need to adopt “credit-crunch chic” without abandoning good taste. And anyway, who would opt for a dress with a five-figure price tag when they can find a similar design at H&M for several hundred kuai? No wonder, then, as many other fashion houses are facing budget cuts and deferring store openings, that this Swedish retailer is still vigorously adding branches worldwide.

H&M’s Qianmen shop opens at 11am on Thursday, April 23. The Xidan store at Joy City opens on Thursday, April 30.

1) Daily (10am-10pm) Qianmen Avenue Store, Bldg A16, Qianmen Dajie, Dongcheng District (6706 0508) 前门大街A16号楼 2) Daily (10am-10pm) Xidan, Joy City, 131 Xidan Bei Dajie (phone TBD) 大悦城，西单北大街131号

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Sina: H&M进驻前门 (top image)