Swedish fashion retailer Hennes & Mauritz (H&M) plans to open about 20 stores in India by December 2017. As of now, the Swedish retailer has 15 stores spread across nine cities. It is opening the 16th and first store in Hyderabad and will occupy two floors spread over 33,000 sq ft.
The long-term plan of H&M for India is to grow to 50 stores. The company plans to invest 100 million in India in the first five years. The world’s second largest retailer after Zara has opened 16 stores since starting 18 months ago and further plans to add six to eight stores by the end of this year.
The fashion retailer plans to open a store every month as part of its strategy to drive their sales in India. Janne Einola, chief executive officer, H&M India, said, “Worldwide, sales through offline medium still accounts 50% of total sales despite the convenience of ecommerce and that is why we are bullish on brick and mortar stores to drive our sales here in India where ecommerce still hasn’t covered much ground. We will be going ahead with our strategy of one store a month to drive our expansion.”
H&M entered the country through a 100 per cent FDI approval for single brand trade route. It has production offices in Delhi and Bangalore and gives employment to 1,200 people. Currently, H&M has one warehouse in Delhi-NCR which caters its India needs. The company is going to open one more warehouse in future to meet the growing demand, future needs and to improve efficiency in its supply chain.
“One more warehouse will be set up in the future to meet the growing demand and also to ensure our products reach our stores as soon as they are launched globally,” said Einola.
According to a study by consulting firm Wazir Advisors, India’s apparel market is likely to grow to $200 billion by 2025. The country has become a profitable destination for international brands. With consumers moving toward international brands as they become affordable, more overseas apparel companies are set to enter the market.
May 01, 2017