India Will Be The Fiftieth Market For H&M.

< p > the world's second largest "a" target= "_blank" href= "http://www.91se91.com/" > clothing /a > retailer Hennes and Mauritz AB (Mauritz) the largest brand on Thursday formally submitted to the India Foreign Trade Promotion Bureau (_blank) to apply for the establishment of Direct stores in the country. If the application is approved, India will become the fiftieth market of marching forward.

H&M currently has 2800 stores in 49 markets.

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< p > according to the India times, according to the times of India, H&M will invest 7 billion 200 million rupees (about 100 million euros) in India to create a wholly owned subsidiary, H&M Retail India (India media The Indian Express, according to the news report), and engage in manufacturing, import and export, marketing, distribution, warehousing and retail of H&M brand products, and plans to open 50 direct outlets, selling a target= "H&M", "P", "clothing", "less", "shoes" and "fashion" accessories, household products, toys and kitchen products.

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< p > to cater for the single brand retail barriers set up by the India government, H&M will not operate e-commerce in India and undertake to purchase 30% of the total value of goods in India.

According to H&M's recently released supply chain data, about 31% (311) of its 993 supply plants come from four South Asian countries in India, Bangladesh, Pakistan and Sri Lanka.

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"India is a huge market and we haven't entered yet," said Karl-Johan Persson, chief executive officer of P Hennes and Mauritz AB, in an interview with India media livemint in India in February.

There are 1 billion people here. In Sweden, we have only 9 million people but 150 stores. It depends on the time we enter, but the market potential is enormous. When we enter the India market, we will open some stores. If everything is as we wish, we will start to expand.

He hoped that H&M could meet the growing middle class in India and the people who yearn for Western lifestyles.

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P, the largest competitor of Zara, the parent company Inditex (ITX.MC) of Zara, was stationed in India in 2010 through the establishment of a joint venture with Tata Group. Its first year of business has reached a balance of payments. Its annual sales of 9 stores reached 2 billion 600 million rupees.

But Inditex does not change the current business model of India's new deal that allows foreign retailers to invest directly.

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Gap Inc. (NYSE:GPS), the world's third largest apparel retailer after Inditex and H&M, has announced its entry into India in 2014. Asia's largest clothing retailer Fast Retailing Co. Ltd (9983.T) and UNIQLO is planning to launch joint venture with India local group to launch retail business in P.

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P IKEA retailer IKEA FIPB has also obtained FIPB approval to invest 105 billion rupees (about 1 billion 500 million euros) to open 25 stores, but is waiting for the adoption of the Committee Committee of on Economic Affairs economic affairs cabinet committee.

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< p > the management and operation ability of India company has been criticized. In December last year, according to the economic times of India English newspaper, the cooperation between Versace and India agents was unpleasant, and they were afraid to withdraw from the India market. At the end of 12, New Delhi and Mumbai shops would be closed and goods sold at three discount rates.

However, based on the potential of India market, fashion brands are still looking at the market. Gucci opened the largest store in India last December. Patrizio di Marco, President of Gucci, visited India two times in the past two years, and Gucci currently has 5 outlets in India.

In addition, India's government has been promoting reforms in recent years to allow foreign retailers to enter and stimulate the economy. Brooks, Brothers and LVMH Mo t Hennessy Louis Vuitton (LVMH.PA), the beauty products retailer Sephora, are benefiting from the reform measures to explore huge business opportunities.

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< p > according to the India Luxury Review 2011 data released by Research Institute A.T. Kearney, India's luxury market will triple to 14 billion 720 million US dollars from 2010 to 2015.

According to a 2012 report of Boston consulting agency, clothing accounts for 6% of India's consumption expenditure, and it is expected to grow 4 times in the next 10 years to 225 billion US dollars, but only 17% of them are expected to come from foreign brands.

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