20-plus Stores target in India by H&M
Hennes & Mauritz AB (H&M), the Swedish multinational clothing retail company opened its 16th and first store in Hyderabad on Saturday. The company-owned outlet will occupy two floors spread over 33,000 sq.ft. in Orbit Mall.
Company’s country manager, Janne Einola said that H&M, which entered India 18 months ago, has been doing well. It earned Rs. 194 crore with a modest profit of Rs. 1.4 crore in 2015-16 through Indian operations and is set to increase its strength in the country to 20-plus stores by opening half a dozen new ones by December 2017.
He felt India offers huge potential going by the performance of H&M in the past 18 months and the market feedback. The implementation of GST and the saturation in Chinese textile market along with the problems facing Bangladesh should hold out big promise for the Indian textile sector growth.
Its strategy for growth will be to locate stores in malls in tier-I & II cities and run own outlets. Known for fashion and quality at the best price in a sustainable way, the brand offers casual to formal wear.
The company is set to launch its second store in Bengaluru soon. There are no plans for any joint venture, Janne said.
H&M entered the country through a 100 per cent FDI approval for Single Brand Trade route. It has a long-term plan to grow to 50 stores and invest over €100 million in India.
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