Red tape stunting H&M India growth
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Bureaucracy is hampering the expansion plans of H&M India according to the Swedish fast-fashion company’s local management.
The firm’s country manager and CEO for the territory Janne Einola said in an interview that the company is facing delays and challenges in the market, blaming the delays on a difficult business environment and citing regulatory obligations.
“Most probably we will see opening 100-plus stores in India, but what the time span is, I do not know,” said Einola.
“The outlook – we thought it would grow faster as per the potential – but what is making it slow is local regulations, which are very costly, take a lot of time and are putting our expansion on slow mode.”
H&M India operates 45 stores, the most recent one opening in Dehradun. The company’s next store is expected to launch in Jalandhar.
Meanwhile, H&M India’s online sales account for a larger share of turnover than the 15 percent achieved globally.
Questions & Answers
Q.What specifically is H&M India blaming for the slower-than-expected expansion?
What specifically is H&M India blaming for the slower-than-expected expansion?
The company's local management attributes the delays to a difficult business environment and regulatory obligations, stating that local regulations are costly and time-consuming.
Q.How many stores does H&M India currently operate?
How many stores does H&M India currently operate?
H&M India currently operates 45 stores. The most recent store opened in Dehradun, and the next is expected to launch in Jalandhar.
Q.How do H&M India's online sales compare to the company's global average?
How do H&M India's online sales compare to the company's global average?
H&M India's online sales account for a larger share of turnover than the 15 percent achieved globally by the company.
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