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H&M targets Brazil and India as US, European spending slows
Yahoo Financeยท 2025-09-25 13:54
Core Insights - H&M is focusing on expanding into emerging markets like Brazil and India due to weakening consumer spending in Europe and U.S. tariffs affecting demand in the U.S. [1][4] Expansion Strategy - The expansion into new territories is part of CEO Daniel Erver's strategy to enhance brand appeal and respond more quickly to fashion trends, aiming to improve profitability and performance [2] - H&M is facing competition from Inditex-owned Zara and Shein, prompting the need for strategic adjustments [2] Brazil Expansion - H&M opened its first store in Brazil in August and plans to open two more by the end of November, with an additional four stores planned for 2026, including locations in Rio de Janeiro [3] - The company sees significant growth opportunities in Brazil and other Latin American markets, as well as in India [3] Store Count and Market Presence - H&M has reduced its global store count by 19% from its peak at the end of 2019, with 4,118 stores worldwide, marking the lowest number since mid-2016 [5] - The company plans to close 200 stores in mature markets by 2025, reflecting a strategic shift in its global footprint [5] Flagship Stores and Market Positioning - H&M has opened flagship stores in key tourist and shopping districts, such as Paris and Shanghai, to attract style-conscious consumers [6] - The premium brand Cos is set to launch in India, targeting the affordable luxury segment, with a store opening in Delhi planned for the fourth quarter [7]