Indian retail market: H&M’s new pricing strategy pays off; sales zoom in H1 2017 | The Economic Times

H&M, the world’s second-largest clothing giant, had said it will open 50 stores in India with an investment of 700 crore by 2020.

The retailer stocks fast fashion items created in-house and teams up with designers for one-time collections. It keeps a large inventory of basic, everyday items sourced from places including India and Bangladesh that carry a lower price tag than most of its rivals.

In comparison, Zara emulates the latest fashion, makes affordable versions and stocks them for a very short span of time. H&M’s entry into India prompted Zara to slash prices by 10-15% for some of its merchandise last year.

The Indian retail market was worth $641 billion in 2016 and is expected to reach $1.6 trillion by 2026, according to the India Business of Fashion 2017 report.

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Indian retail market: H&M’s new pricing strategy pays off; sales zoom in H1 2017.