Despite the slowing growth, Fashion retailer Hennes & Mauritz’s has said its Indian online debut has seen good response even as the country's revenue rose 27% to Rs 275 crore during the first quarter ended Feb.
A statement issued by the company said, "H&M’s online store in India, which was launched in mid-March, has got off to a very good start.” The company’s sales growth, however, has slowed for the past two quarters rising about 20-27% compared with over 50% increase during the preceding quarters.
The world’s second-largest clothing firm opened two new stores in India, taking its total store count to 29 indicating an aggressive expansion after entering India in October 2015.
While the retailer has opened, on average, a store every month, it has also kept prices lower than rivals.
In its two years of operations, H&M has surpassed several brands by annual sales, including Levi Strauss and Benetton, which have been in the country for two decades now, and Marks & Spencer, which started a decade ago. However, Spanish chain Zara, which opened its first store in India in 2010, is still the biggest international apparel brand in the country with sales of Rs 1,023 crore during 2016-17.
The clothing chain, that runs more than 4,700 stores worldwide, reported a 62% drop in operating profit, the lowest level in more than a decade.