Is H&M cheaper in India? (2024)

FAQs

Is H&M successful in India? ›

3000 crores in revenue in 2023, making it the largest fast-fashion brand in India. 40% sales jump from the previous year. In 2015, H&M disrupted college clothing in India. It took away market share from stand-alone brands and allowed people to buy more clothes at the same total overall value.

Stores like H&M, Zara, etc. are considered “fast fashion,” which by definition are relatively inexpensive, but they are not considered “low-end.” “Low-end” stores are more like K-Mart and Walmart.

H&M was an early pioneer of fast fashion. In the 1980s, it began developing a global supply chain to make inexpensive clothes, using low-cost labor in foreign countries and cheaper materials like polyester. It's stated goal was to democratize fashion, making trendy, off-the-runway looks accessible to everyone.

Zara's clothing is more expensive in the US than in other countries due to its worldwide pricing strategy. Studies have found that South Korea is the most expensive market for Zara, with prices 96% higher than in Spain, followed by the US (92%) and China (78%).

H&M to be Sold on Indian E-commerce Platforms Myntra and Jabong. H&M India has signed a deal to sell H&M on e-commerce platforms Myntra and Jabong. “We are extremely delighted to partner with H&M, one of the world's leading fashion brands, and host them on Myntra and Jabong.

If you want to open a store in India, then it (H&M franchise price India) will cost you between 50 lakhs and 1 crore for 1000 square feet of infrastructure for the shopping unit.

Zara is one of the most inexpensive brands providing high fashion items. It is known world wide and several actors shop from the brand. They come out with new products every week. H&M is slightly cheaper than Zara and also sells good quality stuff at low prices.

H&M's most important markets

While the United States has the highest number of stores, Germany is H&M's largest market by sales. In 2023, over 35 billion Swedish kronor were generated from that country alone.

American brands are much cheaper. Jeans in particular (Levis, Gap, Wrangler etc.). European brands may not be cheaper. Kate and Kors are not considered to be high-end designer brands, You will be able to find some styles on discount.

If you haven't known yet, the 'H' stands for Hennes, Swedish “for her” and the 'M' means Mauritz, the name of the brand's first retailer. H&M appeals to both haute-couture and off-the-rack markets so well that it made it to our number two place of the richest fashion labels ever.

Why is H&M losing customers? ›

H&M has been vulnerable to competition from the likes of Inditex and upstart Shein, which has been grabbing market share with cut-price offerings.

Retail giants Nike and H&M are facing a backlash in China after they expressed concern about the alleged use of Uighur forced labour in cotton production. Many Chinese have called for boycotts, celebrities have cut ties and e-commerce platforms have dropped H&M.

Many Indian consumers are willing to accept lower quality products and services in exchange for lower prices, perpetuating the cycle of cheapness in the market. This has made it difficult for businesses that prioritize quality to compete, as they are often unable to match the prices of their lower-quality competitors.

In the fiscal year ending March 2024, the company reported a consolidated net profit of Rs 2,536 crore, compared to Rs 2,378 crore in FY23.

“Right now we have 51 stores and we are going to end this year with 57 stores. Currently, we are present in 26 cities. This expansion will help us grow our presence in 29 cities with the addition of three new markets by the end of the year,” she explained.

Zara's success can be attributed, in part, to its strategic focus on India's more affluent demographics - India 1 and aspirational India 2. These segments have the financial capacity to indulge in Zara's premium offerings, even if it means splurging ₹3,500 on a pair of distressed jeans. The magic here lies in branding.