H&M to open first store in India in 2014

Hennes & Mauritz will open its first store in India this year, it said on Wednesday, as the world's second-biggest fashion retailer becomes the latest to take advantage of the opening of Asia's third-largest economy to foreign operators.

H&M, which said last year it plans to spend around 100 million euros on an initial 50 stores in India, received final approval in December from the Indian government to invest in the country.

"We are very excited to open our first store in India. It is one of the most exciting countries in the world right now, with so much potential," H&M CEO Karl-Johan Persson said in a statement.

H&M has not yet decided where the first store will be opened and is looking at several big cities and locations, but can act fast now it has government approval, a spokeswoman said.

The Swedish retailer has almost tripled store numbers over the past decade to over 3,100 outlets in 53 countries, but it has lagged bigger rival Inditex in expanding in fast-growing emerging markets.

H&M still makes about 80 percent of sales in Europe, while Inditex, with over 6,000 stores in 86 countries, makes about 20 percent of sales in Asian economies versus 6 percent for H&M.

H&M said last month it planned to open 375 new stores worldwide in 2014, including 80-90 in China. It also plans to enter Australia and the Philippines this year.

A flurry of international retailers, including Swedish budget furniture chain IKEA, are looking to expand into India after its government moved in 2012 to allow foreign firms to set up wholly-owned subsidiaries in the country. Inditex is already in India through a joint venture.

Indian retail consultancy Technopak has predicted the textile and clothing market in the country would more than double to $141 billion by 2021, from $58 billion in 2012.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The sudden rush of new papers could unsettle the secondary market

    While questions are being raised if the party has somewhat overextended on the Street, given the not-too-comforting macroeconomic numbers, retail inve

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Why manufacturing needs innovation

Prime minister Narendra Modi’s call of “come — make in ...

Kuruvilla Pandikattu SJ

Warren Buffett’s key to happiness

Despite being the second richest American, Warren Buffett still lives ...

Gautam Gupta

In fashion, why quality must exceed quantity

Every time there’s a fashion week in India, my friends, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture