H&M looking to open stores in smaller cities in India
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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.
Questions & Answers
Q.What is driving H&M's decision to expand into smaller Indian cities?
What is driving H&M's decision to expand into smaller Indian cities?
The expansion is a direct response to a significant demand for H&M's apparel items observed in tier II and III cities, particularly evident through their online platform. Testing in cities like Coimbatore and Jalandhar has also shown promising results for the brand.
Q.How did H&M India perform financially in the last financial year?
How did H&M India perform financially in the last financial year?
H&M in India achieved a 43-per-cent sales growth last financial year. This growth occurred despite the company experiencing a significantly slower overall growth rate during that same period.
Q.What is H&M India doing to appeal to local tastes?
What is H&M India doing to appeal to local tastes?
H&M in India is planning to launch its first Indian ethnic wear collection next month. This new collection will be introduced in partnership with designer Sabyasachi Mukherjee, aiming to cater specifically to local preferences.
Q.How do H&M India's online sales compare to its global average?
How do H&M India's online sales compare to its global average?
H&M in India reportedly takes a far greater proportion of its total sales through online channels compared to the company's global average. The article states that the global average for online sales is 24 percent.
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