10 October 2023, Mumbai
Fast fashion in India may be attributed to the entry of H&M in 2015. Within 2018, H&M had harnessed the appetite for online shopping in India by launching its own app and online store. In 2019, the Swedish brand started retailing through ever-growing e-commerce fashion and beauty giant Myntra and now Reliance Retail’s successful online store Ajio features in H&M India’s e-commerce channels.
H&M India, which operates 51 stores, posted revenue of Rs 2,115.9 crore in fiscal 2022, up 49 per cent from a year ago, while profits rose to Rs 25.3 crore, as per business intelligence platform Tofler.
Its outreach strategy is of course omni-channel growth and as it expands online footprint and extends brick and mortar presence.
In an interview with a popular business site, Yanira Ramirez, H&M India Country Sales Manager reinforced India is a high-growth and high-priority market and she supports the way forward with an omni-channel presence rather choosing an online or offline focus.
Ajio is not displacing Myntra in H&M’s mix
While the entry of Ajio might end Myntra’s exclusivity with H&M products, the Swedish brand will continue retailing on the Myntra platform thereby ending rumors that Myntra and H&M are parting ways.
As Ramirez says, H&M’s long-standing partnership with Myntra has been a super success, exceeding what the Swedish brand was expecting as Myntra power-rolled H&M throughout India and penetrated regions that H&M may not have thought possible through its own online and physical stores.
Exclusive partnerships with well-known fashion brands can significantly boost the appeal of a fashion ecommerce platform. It not only draws in a broader audience but also cultivates a perception of exclusivity and uniqueness.
Ramirez explained in trying to reach more customers, Reliance Retail’s reputation made H&M consider and consolidate Ajio as another online channel.
Earlier this year, it was reported that fast fashion brand Shein is planning to re-enter India in partnership with Reliance Retail.
Under this partnership, Reliance Retail would sell Shein products in offline stores operated by the retailer as well as through its ecommerce app AJIO. With the addition of H&M, Ajio stands to gain and become a greater rival for Myntra and Nykaa Fashion.
With H&M, Ajio ramps up portfolio of international brands
Ajio features over 5,500 brands that include a portfolio of exclusive international brands, own-labels, besides homegrown brands, including Puma, Superdry, Gap, USPA, Steve Madden, Levi’s, Marks & Spencer, Only, Armani Exchange and Nike.
The addition of one of the most successful global fast fashion brands is another great feather on Ajio’s hat. Ajio also stands to gain from Myntra’s work as it built up a robust customer base for H&M in India, particularly in the kids clothing segment.
H&M is also focused on their physical presence
By the end of this year, Ramirez says, H&M would have three additional stores in Patna, Ranchi and Mangalore whilst bolstering its presence in existing cities like Ahmedabad, Hyderabad and Bengaluru. The retailer plans to open six new stores in the country, taking take its store count to 57 by the end of this year.
As the Swedish fast fashion brand embraces an omni-channel strategy that includes e-commerce giants Myntra and Ajio and a continual growth of its physical presence including Tier II cities, H&M will continue maintaining its leadership of being the most preferred international fast fashion brand in India.
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