H&M looking to open stores in smaller cities in India

H&M in India is planning a broad expansion beyond tier I cities into smaller population centers.

The move is in response to a burgeoning demand for its apparel items in tier II and II cities within the territory and continues the brand’s rapid growth in the Indian market, where it has recently partnered with local e-commerce platforms to strengthen its digital footprint.

“What is clearly evident from our online platform is we see a great demand in tier II and III cities,” said H&M India country manager Janne Einola. “Tier II cities have been working very well for us… We have been testing in tier III cities like Coimbatore and Jalandhar. And these cities have been promising. This is the reason why I feel confident that we can grow in India. We will open quite a lot in Tier II cities and some of them in Tier 1.”

H&M in India achieved a 43-per-cent sales growth last financial year despite a significantly slower growth rate during the period. Around half of its current locations within India are in tier II cities, and the firm reportedly takes a far greater proportion of online sales within India than the global average of 24 percent.

H&M in India is planning to launch its first Indian ethnic wear collection next month in partnership with designer Sabyasachi Mukherjee.