H&M targets smaller Indian cities
Selling in India since 2015 with 47 stores in late 2019, the Swedish fashion retailer H&M (net sales of €22.3 billion in 2019, up by 11%) is reviewing expansion priorities. With a dozen new shops per year (12 in 2018, eight in 2019), it is now targeting smaller cities in order to continue fuelling growth, as Indian sales jumped 43% in 2019. “In 2020, most of our store openings will be in tier-2 and tier-3 cities,” said Janne Einola, Director of the Indian subsidiary during a conference organised by the local RAI retail association. “What is clear from our online platform is that we see a great demand in tier-2 and tier-3 cities. We have been testing tier-3 cities like Coimbatore and Jalandhar, which have been promising”. In 2019, H&M teamed up with pure-players Myntra and Jabong to accelerate online sales. Globally, e-commerce generates 24% of the business.