H&M capitalises on ‘Designed in Barcelona’ and opens a product development office in the city

Madrid – The H&M Group appears determined to end the period of gradual decline it has been experiencing in Spain, both operationally and commercially. The company has announced the opening of a “production office” in the country. This department will now operate from Barcelona, strengthening the Swedish fashion multinational's product development capabilities.

According to H&M's management, the new office is located in the iconic modernist building ‘Casa de les Punxes’, designed by Josep Puig i Cadafalch. It is situated near Paseo de Gracia, specifically at 420 Avenida Diagonal, and will primarily focus on tasks related to the company's product development. The H&M Group's main brand currently has a diverse global network of offices for this work, which is now being reinforced by this new Barcelona location. The office will become a key meeting point for the various parties involved in the brand's product development process. This process combines the ideas, experience and skills of its own teams with those of its suppliers.

“Opening this office in Barcelona is an important milestone for us,” stated Karin Lind, general manager of production at H&M, in a statement released by the Swedish fashion multinational. Lind added, “Many of our key suppliers have their design studios here.” The company will be able to strengthen ties with these departments, forming a “collaboration” that “is fundamental to continue elevating the H&M brand,” she concluded.

Capitalising on ‘Designed in Barcelona’

Delving into how these creative relationships and links between H&M and its suppliers will be nurtured from the new Barcelona office, the Swedish fashion multinational highlights the city's role as a hub for local and international creatives. H&M has referred to this scene as having “solid creative and product expertise available in the city,” noting that Barcelona was the “natural location” for “this new collaborative space.” From this base, they seem more than willing to capitalise on the ‘Designed in Barcelona’ concept, which is already being championed by Mango, Desigual, and burgeoning emerging brands like Nude Project.

To this end, the new office will create a collaborative workspace for members of H&M's production and buying teams, as well as selected suppliers. This environment will facilitate trend identification and market analysis, which will then shape a new generation of product ideas. This work will be approached collaboratively, allowing the brand to develop new products much more quickly and efficiently.

“By working closely with suppliers' design studios and connecting their capabilities with H&M's global Production, Buying and Design teams, the office brings knowledge, ideas, development and decision-making closer together,” the Swedish fashion multinational highlighted. From this new office in Barcelona, this process will help “reduce the distance between identifying opportunities, generating ideas, development and decision-making” for the brand's new products.

Under the long shadow of Inditex

From a broader perspective, the opening of this new product development office in Barcelona comes at a time when Spain's relevance as a market for the H&M Group has diminished. This follows the last 2025 financial year, during which its Spanish subsidiary's sales contracted to 469.2 million euros (a decrease of 2.2 percent) and profits fell to 14.5 million euros (a decrease of 20.2 percent). These dynamics have been accompanied by sustained restructuring processes affecting both its retail footprint and workforce, painting a picture of a company undergoing a prolonged and permanent adjustment process in Spain.

From this perspective, the country appears to have become a particularly challenging market for the Swedish fashion multinational. It is increasingly unable to expand its market share in Spain against the strength and reach of its major global competitor, the Spanish company Inditex. H&M is strategically strengthening its position against Inditex with this move. It reveals clear intentions to capitalise on the ‘Designed In Barcelona’ concept, which enjoys ever-increasing added value within the fashion world. This is a brand identity also leveraged by Inditex, which is currently planning the construction of a new ‘macro campus’ in Sant Adrià de Besòs, within the Barcelona metropolitan area. This campus will house the global headquarters for its Massimo Dutti, Bershka, Oysho and Lefties brands.