Leading global brand H&M has reported a 11 per cent de-growth in sales in the year to March 2021. According to its latest filing, it posted sales at Rs. 1,402 crore during 2020-21, down from Rs. 1,582 crore a year ago.
Thanks to aggressive store expansion and lower pricing, despite this fall, H&M is India’s largest fast fashion brand by revenues.
During the financial year, H&M also became one of the largest apparel brands online with sales of Rs. 579 crore from the e-commerce business. In India, e-commerce contributes around 42 per cent of its overall sales.
In a filings with the Registrar of Companies, H&M said, “The company has evaluated the impact of Covid-19 resulting specifically on account of the company’s inability to open its retail stores due to various Government regulations and, therefore, reduction in demand of its goods.”
The brand stocks fast fashion apparel 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 lower price tags than those of most of its rivals.
H&M entered India six years ago and opened a store a month in India on average so far since its entry in the country. Currently, it has more than 50 stores in India.
