- Angela Gonzalez-Rodriguez |
The Swedish fashion retailer is enjoying a rare victory against rival Zara: Hennes & Mauritz's sales in India more than doubled in the nine months to August from a year ago, thanks to its strategy of selling merchandise at lower prices than their Spanish rival.
“The brand positioning is right in a price-sensitive market like India,” said in reference to H&M strategy in India Ruchi Sally, director at Elargir Solutions, a retail consultancy.
According to the performance report released by the company on Thursday, its stores in India generated revenue of 7.04 billion rupees between December 2016 and August 2017, up from 2.91 billion rupees in the previous year for the company which had 17 stores in India till August-end, reports ‘Economic Times’.
"The customers' response to H&M's global fashion, quality, and prices, as well as our expansion strategy of opening stores in metros and tier-2 cities, continues to drive strong growth," said Janne Einola, country manager, H&M India, publishes ‘India Times’.
After opening its first store in October 2015, H&M's Indian unit reported revenue of 194 million rupees by the end of March 2016, with a net profit of 14 million rupees.
Meanwhile, Spanish chain Zara, which opened its first store in India in 2010, had set the benchmark as the fastest-growing international apparel brand in India with sales of 10.23 billion rupees in FY16-17.