The question that looms large is whether H&M has truly resonated with the sartorial taste of Indian consumers, or does it remain a global player with only a superficial Indian touch?
Photo: H&M x Anamika Khanna Collaboration Campaign
Since its arrival in India in 2015, H&M, the Swedish fast fashion giant, has made significant strides in adapting to the unique and diverse Indian market. Entering through the Foreign Direct Investment (FDI) route for single-brand retailers, H&M has not only established a strong retail presence but has also become India’s largest fast fashion brand by revenue. However, in a market as complex and culturally rich as India, the question arises: how localized has H&M really become?
Expansion and Market Penetration
H&M’s expansion in India has been nothing short of remarkable. The brand recorded a 40% increase in sales in 2023, with revenues reaching ₹2,960 crores, up from ₹2,115 crores in the previous year. Additionally, net profit surged by 72% to ₹43.6 crores during the same period. A significant portion of this growth came from online sales, which crossed the ₹1,000 crore mark, accounting for about 40% of overall sales.
These figures underscore H&M’s aggressive expansion strategy in India. Yet, beyond the numbers, the brand has had to navigate the complexities of the Indian consumer market, which is known for its price sensitivity and strong cultural inclinations, especially during festivals like Diwali.
Diwali Collections - A Strategic Move Towards Localization
One of H&M’s most notable attempts at localization has been its Diwali collections. International brands often curate their offerings around key Indian festivities, but these are typically adaptations of existing global collections rather than exclusive lines tailored to Indian tastes. H&M broke this mold in 2019 by launching its first India-exclusive festive collection, marking its initial attempt to resonate with the Indian consumer’s festive spirit.
Janne Einola, then H&M India’s Country Manager, emphasized the importance of understanding the local market. “We need to understand the demand, we need to understand what customers are looking for. We didn't want to bring an ethnic collection—which is traditional Indian wear because this is not what we do. We are good in western clothes; that's why we believe it is nice to offer a different kind of collection to the modern Indian shoppers,” he explained.
The brand’s Diwali campaigns, such as "Brighter Than Ever," have become annual fixtures since 2020. These campaigns feature a blend of Western silhouettes with Indian fashion elements, characterized by gold and sequin accents. By featuring off-beat Indian film celebrities like Vikrant Massey, Sobhita Dhulipala, and Rajkumar Rao, H&M has attempted to connect with a younger, fashion-forward demographic that values modernity with a touch of tradition.
The Sabyasachi Collaboration - A Milestone in Localization
H&M’s collaboration with celebrated Indian designer Sabyasachi in 2021 marked a significant milestone in its localization journey. The Sabyasachi x H&M collection, themed "Wanderlust," was the brand’s first partnership with an Indian designer and featured 70 pieces in Sabyasachi’s signature bohemian style. This collection was a rare example of a fully customized line from an international brand that incorporated traditional Indian attire like saris and kurta sets, albeit with a modern twist.
The collaboration was not only a commercial success but also a cultural statement. It showcased H&M’s willingness to embrace India’s rich textile history and blend it with contemporary global fashion trends. The accessible price points, starting from ₹559, made high fashion more approachable to the average Indian consumer, further strengthening H&M’s position in the market.
Price Sensitivity - Understanding the Indian Consumer
One of the key factors in H&M’s success in India has been its understanding of the local retail culture, particularly the price sensitivity of Indian consumers. With a target demographic ranging from 18 to 33 years, H&M has tapped into the desire for trendy, affordable fashion. Compared to its competitors like Zara and Mango, H&M offers much more accessible pricing, which has been crucial in gaining a loyal customer base in India.
The brand’s strategy of offering the latest trends at lower price points has resonated well with Indian consumers, who are always on the lookout for value for money. This approach has helped H&M not only to survive but thrive in a highly competitive market.
A Balance Between Global Identity and Local Relevance
H&M’s journey in India over the past decade reflects a careful balance between maintaining its global identity as a fast fashion brand and adapting to the nuances of the Indian market. Through targeted strategies like the Diwali collections and collaborations with local designers, H&M has shown a commitment to localization while staying true to its core offerings.
However, the challenge of localization is ongoing. As H&M continues to expand in India, it will need to deepen its understanding of regional preferences and cultural sensitivities to sustain its growth. The brand’s ability to innovate and localize its offerings without diluting its global appeal will determine how well it can continue to resonate with Indian consumers in the years to come.
Comments