H&M, a brand synonymous with fast fashion, is sharpening its claws in India and Brazil amid its reduced presence in the mature markets, as per Reuters. The retailer reduced its stores by 19% in 2019. In 2025, the total count of H&M stores across the world reached 4118, the lowest since 2016. As per news outlets, the retailer is planning another 200 closures this year, primarily in Europe and North America, where escalating costs and weak consumer demand have tightened margins.
In contrast, H&M is expanding in Latin America with two stores in Sao Paulo which were inaugurated in August and four more in line by November of this year. 2026 will see another four being unveiled with one in Rio de Janeiro. It is also gearing up to open in Venezuela, Paraguay and El Salvador.
India continues to be in most demand as far as H&M is concerned. In an earlier conversation with Financial Express, another retail brand, Uniqlo, mentioned how India is one of their top three markets across the world. In line with tapping onto India’s growing hungry consumer economy loaded with an increased purchasing capacity, H&M will launch its upmarket brand COS in Delhi towards the end of the year, targeting the increasing demand for value for money in luxury among urban consumers.
In Sweden and now the world
With its humble beginning in 1947 by Erling Persson in the town of Västerås, Sweden, H&M started as a women’s wear store called Hennes. The purchase of Mauritz Widforss in 1968 brought menswear into its fold and established the brand name that still resonates to this day. Through the years, H&M’s recipe for fast, low-cost fashion revolutionised the world of retailing with the help of tabloid-grabbing celebrity endorsements and an early adoption of Internet sales. Today, the retail brand is present in more than 79 physical markets and offers online service in 61.
H&M’s Indian odyssey started in 2015 when it opened its first outlet at the Select Citywalk mall in Delhi, where consumers lined up a day before to shop. In contrast to several other global entrants who used the joint venture route, H&M opted to take a solo route, relying on tough pricing and a western wear range that struck a chord with the nation’s youth-oriented, aspirational shopper base.
The tactic worked wonders. In its first year of operation, H&M posted Rs 194 crore in sales and a minuscule profit of Rs 1.4 crore. Expansion was fast, with the company opening stores at an average rate of almost one per month. India became H&M’s biggest fast-fashion market in terms of revenue by FY23, with sales reaching Rs 2,960 crore, rising 40% year on year, while net profit rose 72% to Rs 43.6 crore. Online sales were the principal growth driver, crossing Rs 1,000 crore and accounting for nearly 40% of revenues.
But pace slowed down in FY24. Sales increased 11.4% to Rs 3,278 crore, but net profit dropped almost 80% to Rs 8.32 crore, driven by increased competition from peers like Zara and Uniqlo, and the expected return of Shein in a partnership with Reliance. H&M today has about 65 stores in India and is relocating its head office from Delhi-NCR to Bengaluru to be closer to the nation’s fashion and retail hub.
Unveiling festive collections with a Diwali theme, introducing campaigns in local Indian languages, and onboard Bollywood stars such as Athiya Shetty, Ahaan Shetty, and Shanaya Kapoor to resonate with Gen-Z are a few among the steps that H&M has taken to become more integrated into the Indian markets. As a part of its attempts to expand its market and set foot in the emerging markets, H&M has stepped into Tier-II cities like Raipur, Indore, and Coimbatore along with the metro cities.
Controversies
H&M’s journey overseas has not been smooth. The chain has been in the spotlight time and again for allegedly breaching labour laws in their suppliers’ factories, such as dangerous working conditions, low pay, and poor working conditions in countries like India, Cambodia, and Bulgaria. These allegations have often conflicted with the public attention to corporate ethical sourcing.
Cultural insensitivity has also tarnished the brand’s reputation. In 2018, the company faced a lot of backlash for releasing an ad that featured a black child in a hoodie saying “Coolest Monkey in the Jungle”, which later led the firm later apologise. In 2024, an Australian back to school promotion was also withdrawn after it was criticised for sexualising kids.
Concerns about forced labor led to a boycott by Chinese consumers in 2021 when the retailer decided to stop sourcing cotton from China’s Xinjiang region. As a result, the brand was removed from Chinese e-commerce sites.T he backlash weighed heavily on its sales in one of the world’s biggest fashion markets. Furthermore, H&M was also accused of greenwashing in a New York lawsuit that claimed H&M of overplayed claims of sustainability and usage of eco friendly materials.
H&M faces a significant challenge as it intensifies its efforts in Brazil and India: leveraging the potential of emerging markets while repairing a reputation damaged by ongoing scandals.