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H&M bets on India growth as global slowdown hits Europe, U.S.
H&M is targeting India as a key growth market amid slowing demand in Europe and the U.S., planning to launch its premium brand Cos in Delhi this year, leveraging India’s rising middle-class and appetite for affordable luxury fashion.
One of the most significant moves will be the launch of Cos, H&M’s premium brand, in India later this year. The first store is set to open in New Delhi in the fourth quarter. (Image source: Unsplash)
Fashion giant H&M is setting its sights on India as part of a broader push into emerging markets, even as weakening consumer spending in Europe and tariffs in the U.S. weigh on its business, Reuters reported.
CEO Daniel Erver said India, along with Brazil, represents a “bigger opportunity for growth” as the Swedish retailer looks to revive sales and profitability by strengthening brand appeal and responding faster to fashion trends.
While H&M has been closing stores in mature markets, its global store count has fallen 19% since 2019 to 4,118, the lowest since 2016, the company is betting on India’s rising appetite for fashion, including affordable luxury.
One of the most significant moves will be the launch of Cos, H&M’s premium brand, in India later this year. The first store is set to open in New Delhi in the fourth quarter, Reuters reported. Cos, known for its minimalist design and higher price points like $149 dresses and $299 cashmere jumpers will test India’s growing demand for aspirational yet accessible luxury.
“You see in many of the emerging markets that there are great opportunities for affordable luxury positioning, and India is one super interesting market to explore for Cos,” Erver told Reuters, adding he plans to visit the country in the coming weeks.
The India focus aligns with H&M’s larger expansion strategy in emerging markets such as Latin America, where it recently entered Brazil, El Salvador, and is planning stores in Venezuela and Paraguay.
India’s fast-growing middle class and booming retail landscape make it an attractive market for global fashion houses. But competition is fierce, with Inditex-owned Zara already deeply entrenched and fast-fashion player Shein eyeing a strong comeback through Reliance Retail.
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