Swedish fashion retailer Hennes & Mauritz (H&M) recons India to be an important part of its global expansion plan. The brand does not plan to restrict itself to metros here and will look to grow its store chain in new markets.
The company, which has plans to invest 100 million Euros (about Rs 700 crore) predicts a great potential for future growth in the online space in the country.
Country Manager for H&M Hennes & Mauritz Retail, India, Janne Einola, told a media house that the brand recons India as an important part of its global expansion. The brand aims to grow with its business concept of 'Fashion and quality at the best price' in a sustainable way.
The chain has opened four stores in India and plans to add four more this year.
Questioning the company's network expansion strategy, Einola said that H&M believes there is a lot of room for growth and it should not limit itself only to metros. The availability of attractive business locations is the major deciding factor in H&M’s expansion, whether it's a mall or high street.
Einola also stated that H&M will only focus on opening company-owned stores as "franchising is not part of its India expansion strategy.
Talking about e-commerce in India, he said that online shopping is a natural expansion of H&M’s business. The brand observes a great potential for future growth in the online space. However, H&M would focus on brick and mortar retail store format for the moment.
H&M is also open for Indian designers and online sale channels in coming years.
The company, which operates 3,900 stores in 61 countries, sees India as an important part of its global expansion drive.
Einola said that H&M is fully confident that it would fulfil the 30 per cent local sourcing in next five years as required under retail FDI policy. H&M has had production in India since 1993. With the brand growing expansion rate, it predicts an increase in sourcing from all markets including India. The brand is ready to comply with the sourcing requirements of the FDI policy.