Red tape stunting H&M India growth
Bureaucracy is hampering the expansion plans of H&M India according to the Swedish fast-fashion company’s local management.
The firm’s country manager and CEO for the territory Janne Einola has told the Economic Times in an interview that the company is facing delays and challenges in the market, blaming the delays on a difficult business environment and citing regulatory obligations.
“Most probably we will see opening 100-plus stores in India, but what the time span is, I do not know,” said Einola.
“The outlook – we thought it would grow faster as per the potential – but what is making it slow is local regulations, which are very costly, take a lot of time and are putting our expansion on slow mode.”
H&M India operates 45 stores, the most recent one opening in Dehradun. The company’s next store is expected to launch in Jalandhar.
Meanwhile, H&M India’s online sales account for a larger share of turnover than the 15 per cent achieved globally.