H&M doubles down on India’s fashion appetite

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Fashion retailer H&M is sharpening its focus on India amid slowing demand in Western markets. CEO Daniel Erver described India, alongside Brazil, as a “bigger opportunity for growth” as the Swedish brand looks to revive sales and strengthen profitability.

H&M’s global store count has dropped 19% since 2019, falling to its lowest since 2016 as the company shutters outlets in mature markets. Yet in India, the brand is betting on the country’s fast-expanding middle class and appetite for accessible fashion.

One of its most significant moves will be the introduction of Cos, H&M’s premium line, later this year. The first Cos store is set to open in New Delhi in the fourth quarter, offering minimalist designs at higher price points — such as $149 dresses and $299 cashmere jumpers. Erver said India presents “great opportunities for affordable luxury positioning” and confirmed he plans to visit the country soon.

The push builds on H&M’s broader strategy to strengthen its presence in emerging markets. Recently, the company has expanded into Brazil, El Salvador, and announced plans for Venezuela and Paraguay. India remains central to this playbook, both for store expansion and for testing consumer appetite for premium lines.

Competition, however, is intensifying. Inditex-owned Zara continues to dominate the fast-fashion segment, while Shein is preparing a comeback through Reliance Retail. H&M’s India bet reflects not just an emerging market shift, but also a recalibration of global fashion retail strategies in the face of weak consumer sentiment in Europe and rising tariffs in the US.