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    H&M's Entry Into India, South Asian Countries Is About To Expand.

    2013/11/18 11:12:00 30

    H&MSouth Asian CountriesClothing Exports

    According to our previous reports, H&M Hennes & Mauritz AB (HMb.ST) will invest 7 billion 200 million rupees (about 100 million euros) to create a wholly owned subsidiary of H&M Retail India Ltd. in India, operating H&M brand products manufacturing, import and export, marketing, distribution, warehousing and retail, and plans to open 50 direct outlets, sales. clothes , shoes Shoes, cosmetics, handbags and fashion accessories, household products, toys, kitchen products and other 9 categories of products.


    To cater for the single brand retail barriers set up by the India government, H&M Hennes & Mauritz AB (HMb.ST) will not operate e-commerce in India, and undertake to purchase 30% of the total value of goods in India. According to the recently released supply chain data of H&M Hennes & Mauritz AB (HMb.ST), about 31% (311) of its 993 supply factories come from four South Asian countries in India, Bangladesh, Pakistan and Sri Lanka.


    H&M Hennes & Mauritz AB (HMb.ST) CEO Persson Persson interviewed in India media livemint in India in February this year, said: "India is a huge market. At present, we have not yet entered. 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.


    H&M Hennes & Mauritz AB (HMb.ST) has now rented out an office space of 10 thousand square feet plus Rolle. According to India's Business Standard, the company is also close to renting a 25 thousand square foot shop in a shopping mall in New Delhi.


    It has been quoted previously as H&M Hennes & Mauritz AB (HMb.ST) and Japan. clothing Retailer Fast Retailing Co. Ltd. (9983.T) fast retailing group's brand Uniqlo UNIQLO decided to postpone the local shop plan due to the depreciation of the rupee in India and local economic and political factors. Sources say H&M and Uniqlo UNIQLO's first store in India will not open until 2015.


    H&M's biggest rival, Zara's parent company Inditex SA (ITX.MC), entered India in 2010 through a joint venture with Tata Group. Its first year of business has reached a break even, and its 9 stores have annual sales of 2 billion 600 million rupees. But Inditex SA (ITX.MC) does not change the current business model of India's new deal that allows foreign retailers to invest directly.


    Gap Inc. (NYSE:GPS), the world's third largest clothing retailer after Inditex and H&M, has announced its entry into India in 2014.


    IKEA IKEA, a Swedish retailer, has also received FIPB approval to invest 105 billion rupees (about 1 billion 500 million euros) to open 25 stores.

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