H&M Swept India'S Clothing Market

In the days when China's market is becoming more and more saturated, the market of India, the second largest country with population, is gradually becoming more and more important.

Notice and develop.

However, due to the economic and social development of the country, compared with the fashion and speed of fashion design, the locals pay more attention to the price of products. This is why fast fashion and middle and low grade brands have taken the lead in entering the India market.

Tycoon

In 2010, it seized the opportunity to enter the India market. At that time, India's fast fashion market was not yet mature. At the same time, people lost interest in Benetton, Marks & Spencer, which had been operating in the India market for nearly twenty years, so the appearance of Zara was an oasis of fashion and showed amazing sales volume.

However, Zara has been broken by H&M for nearly six years. According to the world clothing and shoe net, H&M achieved profit after entering the India market for six months, and Zara took seven years to achieve it.

According to H&M's latest annual report, as of November 2016, H&M has a turnover of 4 billion 450 million rupees (about 400 million yuan) in the India market. Since the end of 2015 to November 2016, H&M has opened twelve stores in India, and has indicated that fifty stores will be opened before 2020.

H&M officially entered the India market in 2015. Although it has lagged far behind other fast fashion brand competitors, its success is aimed at the new middle class crowd growing up in India.

Not just H&M wants to seize the new middle class crowd, Economic Times points out that more than 50 global retailers will enter the India market in the second half of 2017.

Unlike the ten years ago, many small brands are pouring into the India market today. Franchise India chairman Gaurav Marya said in an interview: "there was the first retailer trend in India ten years ago, but at that time large brands wanted to enter the India market.

Today, the second wave is almost all small and medium sized brands. They can see that India has just implemented the open retail policy of foreign direct investment (FDI) and the gap of brand rank on the market, hoping to make profits.

"Two points mentioned by Marya are the factors that show unprecedented potential in India's retail market. In addition, the huge population base, rapid urbanization and the popularity of the Internet and smart phones have played a decisive role.

In fact, according to the Kearney global retail development index released in early June, India has occupied the top list of retail investment in developing countries. China's slowdown has slipped to second place. Of course, this does not mean that there is a problem in the Chinese market. This is just a normal development track for a mature market. India is like the next Chinese market in a fast growing period.

Not limited to offline retail, online e-commerce is also expanding its territory in India step by step.

Four years ago, Amazon officially entered the India market. In just a few years, it accumulated a large number of user groups in the field of mobile phone terminals, which led to the gradual extrusion of the market of India's local e-commerce platform Flipkart.

According to the world clothing and shoe net, in the past year, the user contact rate of Amazon mobile APP has increased by 46%, while Flipkart has decreased by 11.5%. Amazon is not satisfied with this. It promises to invest more than $5 billion in the India market in the next few years.

It can be seen that the mobile terminal shopping market has great potential in India, and most retailers who enter the India market come with the corresponding mobile phone APP. The Mike Moriarty partner told Retail Dive: "mobile terminal shopping is changing the retailer's idea of global expansion and becoming an indispensable means to develop new markets."

More interesting reports, please pay attention to the world clothing shoes and hats net.