Hennes & Mauritz (H&M) is aiming Rs 2,000 crore turnover in India, its fastest-growing emerging market. The world’s second-largest fashion retailer expects to achieve the target by the end of this calendar year (CY), driven by a greater online and offline push, local collaborations and affordable merchandise.
Following a December to November accounting year, H&M has 47 stores in India. The brand competes globally with Inditex’s Zara, the world’s largest fashion company. Inditex, which has a joint venture (JV) with Trent in India, runs 22 Zara stores in the country.
H&M will be maintaining its more than 40% rate of growth in terms of sales for 2020, coming at a time when there is a domestic consumption slowdown.
In 2019, the brand had grown top line at the rate of 43% per annum, touching Rs 1,490 crore, ahead of the 29% top-line growth it had achieved in 2018.
Speaking on the sideline of RAI Retail Leadership Summit 2020, Janne Einola, Country Head of H&M India, said, “The company was raising its India bet this year, targeting tier-II and -III markets apart from tier-I cities to set up its stores. The retailer proposes to add 5 to 10 stores this year, taking its total store count to over 50. The retailer had earlier committed Rs 700 crore to set up 50 stores in India.”
Further Future Plans
H&M is also looking at diversifying into areas like home furnishings, beauty, sports retail, starting with the home segment as early as possible, while beauty and sports retail will come later.
The company will further introduce a Sabyasachi Mukherjee collection in April, including western and Indian wear like saris. For the first time, Indian wear will be available at H&M outlets in India, while the western wear in Mukherjee’s stable will be taken to international markets like the UK, France and the US this year.
In India, H&M will also unveil its loyalty programme as it looks to drive sales in the country.