Hennes & Mauritz (H&M) is planning to enter India’s home decor and furnishing products industry which will pitch the global fashion retailer against local firms Bombay Dyeing and Fabindia and its Swedish peer Ikea.
A part of the high street fashion label, H&M Home offers products like cushion covers, blankets, curtains and accessories. “We are looking at the home segment and it will be decoration products and not furniture. There are not many players in that category and the product range doesn’t change for years. In the organised sector, our strength will be the latest assortment,” said Janne Einola, H&M’s India Chief Executive.
The company is still to decide if its furnishing retail foray will be through a standalone format or existing stores would be leveraged to sell the new product lines.
Globally, H&M Home is mostly present with 362 shop-in-shops and eight standalone stores, in about 50 countries. With annual sales of Rs. 1,109 crore in India, H&M has surpassed all apparel brands except Zara in revenue after three years of India operations.
It keeps a large inventory of basic, everyday items sourced from manufacturers in India and Bangladesh and these items carry lower price tags than those sold by rivals.
Foreign single-brand retailers need to meet 30 per cent local sourcing norms to operate their own stores in the country. H&M said India is a large global supplier for home products and if these items are sold locally, the sourcing norms would be met and would also give significant cost advantages to the brand.
“A bulk of sourcing for home products globally is from India and we’ll benefit in terms of sourcing, given these will be made in India and sold here too,” added Einola.