Swedish fast fashion retailer H&M (Hennes & Mauritz) is relocating its Indian headquarters from Delhi-NCR to Bengaluru, aiming to tap into the city’s thriving ecommerce and fashion tech scene, according to knowledgeable sources. H&M currently employs over 100 staff within its corporate office and is shifting operations from its Saket location in Delhi to a new site in North Bengaluru. The company has not responded to inquiries from StartupSuperb regarding this transition.
In the previous year, Louis Coucke, H&M India’s CFO and Country Controller, departed the company to join the Dubai-based Albatha Group. Eric Bennici, a veteran H&M executive, was appointed to succeed Coucke. Furthermore, H&M welcomed Helena Kuylenstierna as its India Director in 2024.
The fashion retailer operates approximately 65 stores across the country, facing competition from global brands such as Zara and Uniqlo, alongside a surge of domestic startups. Bengaluru has established itself as a vital hub for firms seeking outstanding talent in ecommerce, technology, and fashion. The city is a marketplace for both traditional and digital-first apparel brands, featuring companies like Rare Rabbit, Mensa Brands, Newme, BlissClub, Snitch, Wrogn, Arvind Fashion, and Aditya Birla Group’s house of brands initiative, TMRW.
Additionally, Bengaluru holds a significant position within the fast-fashion landscape, with Tata Group’s fast-fashion venture Zudio founded in the city. Competitors such as Reliance Retail and Aditya Birla Group have also introduced fast-fashion options in Karnataka’s capital.
Adding to its allure, Bengaluru is home to major fashion and ecommerce platforms, including Walmart-owned Myntra, Reliance’s Ajio, Flipkart, and Meesho. H&M, which previously sold exclusively on Myntra, broadened its footprint last September when Ajio announced it would also feature products from the Swedish retailer. Following the COVID-19 pandemic, ecommerce has become an essential channel for fashion retailers, prompting them to cultivate specific strategies, contrasting with previous approaches that regarded ecommerce as less critical.
H&M’s move mirrors the recent actions of quick commerce firm Zepto, which shifted its headquarters to Bengaluru to harness the region’s talent pool. Quick commerce companies are also diversifying into new segments, such as fashion and electronics.
These developments unfold against the backdrop of Chinese fast-fashion behemoth Shein planning its return to India in collaboration with Reliance. With the competition in India escalating, prominent players including Uniqlo, M&S, Zara, and H&M have experienced sluggish growth and diminishing profits in FY24, influenced by reduced discretionary spending and a high inflationary climate.
H&M reported an 11% increase in operating revenue, reaching Rs 3,278.4 crore in FY24, according to filings with business intelligence platform Tofler. Nevertheless, its net profit plummeted 80% to Rs 8.32 crore, down from Rs 43.6 crore the previous year. This decline follows a substantial 40% revenue growth to Rs 2,942 crore in FY23.
On a global scale, Stockholm-listed H&M recorded flat sales and reduced profits in its third-quarter earnings, impacted by currency fluctuations, winding-down expenses, and rising living costs.
