CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Sweden's H&M said to hold talks with 3 Indian firms for market foray

10-22-2012 15:07 BJT

By Arup Chanda

KOLKATA, India, Oct. 22 (Xinhua) -- Stockholm Stock Exchange- listed H&M, the world's largest clothing retailer after Spain's Inditex -- the parent company of Zara -- was in talks with three of the country's leading fashion chains for its India foray, said two people with knowledge of the talks.

The names include textile major Arvind Ltd, Reliance Industries- owned Reliance Brands and Delhi-based luxury fashion retailer Genesis Colors, according to a person in the know. The Swedish fashion retailer wanted to lead a 51:49 joint venture with an Indian partner, he said.

"They want to partner with a group that has successful brands business and deep understanding of the Indian fashion retail," said the person, declining to be identified.

When contacted, H&M Press Officer Hacan Andersson said, "At the moment, these are only rumours, and we have a policy of not commenting on rumours."

Arvind Ltd Chairman &Managing Director Sanjay Lalbhai said, " We do not comment on companies we are in talks with and brands we want to launch." Reliance Brands CEO Darshan Mehta declined to comment, and a Genesis Colors spokesperson did not offer any comment on the subject.

Consultants say H&M will move much more aggressively after the Indian government comes out with more clarity on the mandatory 30 per cent sourcing in single-brand retail. Swedish furniture major IKEA, which has proposed a euro 1.5 billion investment in India, has issues with the sourcing norms.

"They have been in talks with various Indian companies for long. They have an issue with the single-brand retail policy. They must be waiting for clarity on the mandatory sourcing norm," said Harminder Sahni, managing director, Wazir Advisors, a management consultancy.

Although H&M had held talks with leading Indian companies like DLF, Phoenix Mills and ITC in the past, the talks had not materialised.

"As and when H&M enters the Indian market, it will take Zara head-on, quite like in global markets," said the head of department of a chain on the condition of anonymity.

The H&M group has 2,600 stores in 44 countries and has brands such as H&M and H&M Home as well as COS, Monki, Weekday and Cheap Monday.

Zara's parent, Inditex, has 5,618 stores across the world.

In India, Zara has already taken a lead by forming a joint venture in 2009 with Tata-owned Trent to set up stores here. It runs eight Zara stores across Mumbai, Pune, Bangalore and Delhi and plans to open six to seven stores every year.

Reliance Brands has launched a dozen-odd brands in India. These include Diesel, Paul& Shark and Timberland that straddle across luxury, affordable luxury and high premium segments. Arvind has brands such as Tommy Hilfiger, with which it has a joint venture.

Genesis Colors has also forged tie-ups with a number of luxury brands such as Canali, Bottega Veneta and Jimmy Choo, among others.

"In some markets H&M is collaborating with franchise partners, but franchising is not part of the general expansion strategy," H& M says on its website.

 

Editor:James |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program