A surge in fossil fuel prices following the war in Iran has begun to worry garment manufacturers, raising the prospect of higher production costs for global fast-fashion retailers such as H&M. Amid the turmoil H&M India has announced new collaborations and expansion plans. In this interview, Helena Kuylenstierna, director, H&M India, talks to Christina Moniz about what its new initiatives mean for Gen Z and the brand’s growth plans for the Indian market. Edited excerpts:
H&M has a good presence in large metros but experts say growth lies in tier-II markets and beyond.
We have 71 stores in India and have been expanding at a good pace. We’ve already opened three stores this year, and a couple of weeks ago opened our 70th store in Jodhpur, Rajasthan, which was also our first store launch in the state. We don’t categorise markets into tier-I or II. Our approach is to find locations with a large concentration of fashion enthusiasts and buyers.
Delhi, of course, is an important market for us, where we have the largest footprint of stores, and we have a significant presence in Mumbai and Bengaluru as well. We’re looking at a mix of large metro markets, along with other markets like Gangtok and Siliguri. On the online front, through our website, we’re able to reach nearly 95% of the country. We’re also available on e-commerce platforms such as Myntra, Nykaa and Nykaa Fashion.
How are you addressing challenges from the global turmoil and the threat posed by major global retailers in the country?
While we stay true to our global identity, we are also becoming locally relevant. We celebrated a decade in India
this fall and have earned a great deal of love from our customers across the country. One of the major reasons for our success is the kind of customer experience we offer across our stores.
We work with young Indian models for our campaigns and have a large influencer community. Our collections for festivals have also been well received. While we’re bringing global fashion to India, we also want to take Indian fashion out to the world. That’s why H&M has partnered with Indian designers like Sabyasachi and Anamika Khanna in the past to create collections that were well received in other markets.
We’ve seen branded events becoming a launchpad for brands in recent years, whether it is Nykaaland or Myntra Glamstream Fest. What are H&M’s plans in this regard?
We’re seeing music and live events really take off in a big way. So many global music stars have been performing in India in recent years. Music and experiences are very close to fashion, and they’re connected to our DNA. We partnered with Lollapalooza for two years now, and even created collections uniquely for the event. Co-creating has been an important focus for H&M, whether it is with designers or even content creators. So, we have been working with prominent names and even lesser-known influencers to become a platform for them.
You are betting big on beauty products though you are a bit late to the party. What has been the consumer response to H&M Beauty?
When we launched H&M Beauty, there was a lot of scepticism but India is the fastest growing beauty market in the world right now. What we’re offering is unique, especially since our brand sits in this intersection between fashion and beauty. Our range offers quality products at affordable prices with a strong focus on sustainability. If I were to highlight one category, it would be the fragrances that have seen an exceptional response especially from Gen Z consumers.
Take us through your collaboration with Stella McCartney. What are your expectations from it?
Stella brings a lot of credibility, innovation and value in the sustainable fashion space. These attributes reflect H&M’s values as well. What this collaboration does is offer a fantastic designer collection to young consumers. For many of them, this may be the first time they get to own a piece from an acclaimed designer. The collection starts at a price point of `2,299, thus making designer wear affordable and accessible for all. Gen Z cares a lot more about sustainability than previous generations. Considering 90% of this collection is made from recycled, organic or certified material, we expect it to be even more appealing to this generation.
H&M has also been pushing the sustainability effort for several years. By 2030, we aim to ensure that 100% of everything we sell will either be sustainably sourced or recycled.