H&M’s third store is scheduled to open in Bengaluru early next year. Photo: Pradeep Gaur/Mint
New Delhi: Swedish fast-fashion brand Hennes and Mauritz AB (H&M) is set to open its second store at a south Delhi mall on 7 November, looking to cash in on the Diwali rush of shoppers.
The new outlet, which will be a larger than the first store at Select CityWalk mall spread over 25,000 sq. ft, will be located at Ambience mall at Vasant Kunj. H&M opened its first outlet on 2 October.
The second outlet will be spread over 28,000 sq. ft and three floors, real estate firm Ambience Pvt. Ltd, owner of the mall, said in a statement on Wednesday.
H&M’s third store is scheduled to open in Bengaluru early next year.
H&M reportedly crossed Rs.1.75 core in sales on the opening day at its first store, according to a report by the Economic Times on 5 October.
For H&M, India is its 60th market. The company had, in its application to the government, said the brand will open 50 stores over five years. It also stated that it will be investing €100 million (about Rs.730 crore) in that period.
H&M entered India about five years after Spanish clothing and accessories retailer Inditex SA’s Zara launched in Asia’s third largest economy, and about four months after US-based casual wear brand Gap Inc.
Unlike its rivals Zara and Gap, which entered India with local partners Tata group’s Trent Ltd and Arvind Ltd’s Arvind Lifestyle Brands Ltd, respectively, H&M operates on its own as a single-brand retailer, complying with the foreign direct investment (FDI) regulations.
According to the law on single-brand retail, up to 100% FDI is allowed, but only 49% can come through the automatic route. For FDI above that, a company needs to take approval, and is bound to source locally—to the extent of 30% of the value of goods purchased—preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen.
Among others, Japan’s Uniqlo has also announced plans to enter India.
H&M has aggressively priced products for India, with T-shirts starting at Rs.399, denim trousers for women starting Rs.699 and those for men starting Rs.999.
H&M is the second largest apparel retailer in the world after Zara. The H&M group has over 3,600 stores globally, and registered $22.33 billion in sales in 2014. It plans to open 400 stores in 2015 in markets such as Taiwan, India, South Africa and Peru, the company said earlier this year.
India’s apparel market is estimated at $45 billion, and is projected to touch $200 billion by 2025, according to a study by consulting firm Wazir Advisors.