Identifying India as an important part of its global expansion plan, Swedish fashion retailer Hennes & Mauritz (H&M) says it will not restrict itself to metros here and will look to grow its store chain in new markets.
The company, which has plans to invest 100 million Euros (about Rs 700 crore), also said it sees "a great potential for future growth in the online space" in the country.
"We do see India as an important part of our global expansion. We aim to grow with our business concept of 'fashion and quality at the best price' in a sustainable way," Country Manager for H&M Hennes & Mauritz Retail, India, Janne Einola, told PTI.
The chain has opened four stores in India and plans to add four more this year.
When asked about the company's network expansion strategy, he said: "At H&M we believe there is a lot of room for growth and we do not limit our selves only to metros, we are constantly looking at new possible markets to open in.
"The availability of attractive business locations is the major deciding factor in our expansion, whether it's a mall or high street."
Einola, however, said H&M will only focus on opening company-owned stores as "franchising is not part of our India expansion strategy".
When asked about e-commerce in India, he said: "Online shopping is a natural expansion of our business. We see a great potential for future growth in the online space."
However, H&M would focus on brick and mortar retail store format for the moment, he added.
H&M is also open for Indian designers and online sale channels in coming years.
The company, which operates 3,900 stores in 61 countries, sees India as an important part of its global expansion drive.
He said H&M is fully confident that it would fulfil the 30 per cent local sourcing in next five years as required under retail FDI policy.
"H&M has had production in India since 1993. With our growing expansion rate, we see that we will increase the sourcing from all markets including India, we will comply with the sourcing requirements of the FDI policy," Einola said.
