Swedish fashion retail chain Hennes & Mauritz today said it will soon file an application with the government for opening wholly owned single brand stores in India.
The issue was discussed during a meeting of Commerce and Industry Minister Anand Sharma and Hennes & Mauritz CEO Karl Johan Persson here.
"We have been here looking, several times. It's (India) a very interesting market, lots of interest in fashion. We are in application process, which we intend to apply now. That is the stage we are at. We are in the process and we will see how it goes...So the application will be filed shortly," Persson told reporters after the meeting.
Expressing keen interest in the Indian market, he said that a presentation was given by the company to Sharma.
"We also gave a short overview of H&M, and what we want to bring to Indian market, a market that we find is very interesting," he added.
On investments, the CEO said: "We will see. It is a huge market. We are not there yet. It's more than a billion people living in India and in Sweden we are only nine million, and we have 150 stores (in Sweden). It depends on what time frame we are looking at but the potential is enormous. We will start if everything goes well."
When asked about the company's India plans, he said that initially the firm would open a few stores and accordingly increase the number after seeing the potential.
"We will start with a few stores when we enter and we will see if everything as we hope (is on), then we will expand heavily from there," he said, adding, "I do think that we offer something new to the Indian market in terms of fashion, and quality and great prices. Hopefully we will get a good reception".
On the sourcing norms, the CEO said the company is already sourcing from India.
"And, of course that (sourcing) will increase with our growth and the likelihood of us increasing here with having stores close by. So I think we will bring a lot to India not just our customer offering which is great, but also investment in stores, recruitment and increased sourcing," he added.
India is witnessing an increased interest in the retailing segment ever since the government allowed 100 per cent FDI in single brand retail in January 2012.
The Finance Ministry has already cleared several foreign direct investment (FDI) proposals in the sector including that of Decathlon, Fossil Inc, Crockery maker Le Creuset, Promod, Swedish furniture-maker Ikea, British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers and Italian jewellery maker Damiani.
