H&M’s India sales amounted to Rs. 380 crore for Q2 ending May 2019! Now that’s the strongest growth H&M has seen across all its global markets.
And to add to this, new stores as well as increasing push for full merchandise have further strengthened brand’s Indian market.
However, Fredrik Olsson, Managing Director, H&M, who is in the country to launch H&M products on Myntra.com, said that the ease of doing business in the country could improve significantly if the authorities streamlined the dozens of licenses required to open stores here.
Substantiating further, he said “We are very open to invest more in India. It is about how do you build a stronger business. If policies or setups could be a little bit easier, more of the investments could go directly into improvements for customers and that will grow the business faster.”
As suggested by the brand, it would be helpful to make the process for these licenses go online with clear instructions as to the procedure for procurement. At present, a retailer requires around 17 licenses to open a store, with the number varying for different states. The amount of admin work and costs are a big deterrent for brands who want to expand throughout the country.
The world’s second largest fashion retailer entered India in 2015 and has so far opened 42 stores in various cities in India, garnering more than Rs. 1,100 crore in annual sales over the last 4 years, coming in second to Spanish fast fashion retailer Zara.
“Looking at India as a market, we believe there’s tremendous potential. It’s a large population. It’s a very fashion-oriented population. With a really good reception here, we feel that our business idea really works here. So we’re trying to grow, we’re fine as we grow and learn so that we deserve the next wave of growth,” Olsson said.
The retailer has also received a raging response for its online business since its start in March last year as India has outdone the average 15 per cent sales that H&M gets from its e-commerce business in other countries.