Zara: H&M sales double as pricing strategy pays off | The Economic Times

MUMBAI: Swedish fashion retailer Hennes & Mauritz’s sales in India more than doubled in the nine months to August from a year ago, thanks to its strategy of selling merchandise at lower prices than rival Zara.

According to the performance report released by the company on Thursday, its stores in India generated revenue of Rs 704 crore between December 2016 and August 2017, up from Rs 291 crore in the year-ago period. For the company which had 17 stores in India till August-end, this works out to an annual average of about Rs 58 crore, higher than any other rival in the country in apparel segment.

“The customers’ response to H&M’s global fashion, quality and prices, as well as our expansion strategy of opening stores in metros and tier-2 cities, continues to drive strong growth,” said Janne Einola, country manager, H&M India. After opening its first store in October 2015, H&M’s Indian unit reported revenue of Rs 194 crore by the end of March 2016, with a net profit of Rs 1.4 crore. This rose sharply to about Rs 640 crore with a net profit of Rs 15 crore during 2016-17 through 15 stores, many of them barely a few months old then.

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Zara: H&M sales double as pricing strategy pays off – The Economic Times.