H&M India Successfully Expanding
H&M is among western retailers making headway in India, according to Quartz India.
H&M began selling in India a year and a half ago. Currently, the retailer is planning to open another location in Bengaluru, and soon it will have 15 Indian locations. India is third from the top among Asian economies, and several retail clothing businesses have seen success there. Zara, for example, had sales of $126 million at the end of their year on March 31, 2016.
With $67 million in sales in India last year as of Nov. 30, H&M has created a successful business model selling western fashion. The company produces western styles at an affordable price point, which H&M India country manager Janne Einola said was lower than competitors’.
Einola also said that the Indian market has an opening for western style clothing, and that H&M is satisfied with their success even in cities that were reportedly too traditional to expect western clothing to sell well in, such as Chennai. She also said that the company didn’t find there was a risk in venturing to traditional markets, and that fashion has a global nature.
H&M has lowered the prices on a few items since opening in India, like trousers, but they have mostly remained steady. Items available at their Indian stores are available in their other locations around the world. The Studio Collection that showed for Paris Fashion week one day became available at the H&M Delhi location the next.
Einola also said that H&M does not feel pressured by competitors in India lowering prices. At this time, the company is looking to increase stores in India and keeping an eye on the online market before making plans to get in.
Of the company’s success in Indian markets, Einola said pricing alone wasn’t the secret. She said fashion and quality are key elements, and the selection that H&M presents, ranging from children’s to adult’s clothing, means they are open to a variety of customers.