India among top three potential markets, says H&M CEO
Swedish fashion company Hennes & Mauritz (H &M) is very optimistic about the potential in the Indian market and is planning to expand its presence in smaller towns to boost its growth in the country.
"In terms of potential, it (India) is definitely in the top three markets, with more than a billion people living and the country growing," H&M Group CEO Karl-Johan Persson told the Economic Times.
"If we continue to do well, we will enter smaller cities in India like we have done in other countries," Persson added.
The Swedish retailer has 14 stores in Indian cities including Mumbai, New Delhi and Chennai and is scheduled to open one in Hyderabad.
The company’s India sales increased more than three-fold in rupee terms in the first quarter ended February 28, according to a statement issued by the company.
H&M opened its first store in India in October 2015 and turned profitable in its first year of operations. The India unit posted sales of Rs194 crore during the year ended March 2016 and a net profit of Rs1.4 crore.
India’s apparel market is projected to grow to $200 billion by 2025, according to the group’s sustainability report for 2016.
The company has about 4,400 stores in 65 markets and plans a net addition of 430 outlets in 2017.
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