H&M gets the green light from Indian authorities

H&M Conscious collection
The Swedish clothing retailer has finally been given the green light from the Indian authorities to invest 100 million euros in a directly-owned subsidiary, through which the brand will open around 50 points of sale in the country.

Previous legislation meant that foreign brands were unable to own more than 49% of a subsidiary in India. In order to own 100% of its subsidiary, H&M has entered into an agreement to locally source 30% of the products sold in the country.

H&M has some work to do to catch up with Spanish competitor Zara, who entered the market three years ago and now has nine stores under its belt. The world’s third largest clothing retailer Gap Inc has also announced plans to enter the market in 2014. Various other international brands such as Levi’s, Uniqlo, Prada ad Sketchers are already present in India.

The Indian clothing and textile market is expected to reach 141 billion dollars by 2021 and is brimming with untapped potential, with only 17% of 40 billion dollars in clothing sales coming from international brands.

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