H&M India reportedly surpassed Rs 1100 crores (US$157.6 million) in sales in the 12 months to November, just three years after the Swedish fast-fashion label entered the market.
There are now 42 H&M India stores trading and consumer demand continues to meet the pace of expansion. That means that the Indian business has not been swamped with unsold inventories requiring aggressive discounting strategies, in contrast to most other international markets in which H&M trades.
“H&M India’s expansion strategy has been successful and the company has been expanding in the right way,” observed Shubhangi Bidwe of Fashion United.
“A tight control on expenditure, including ad spend, economies of scale, well-managed back-end, lower product prices and penetration in tier 2 and tier 3 cities have helped the brand grow faster in India compared to most of its peers.”
Given the footfall H&M stores attract, the brand is coveted among shopping centre managers in India who typically place them in anchor spaces.
The company plans to continue to open new stores at the rate of about one per month. Online, the brand is registering double-digit sales growth.
