The difficult business environment in the country has hampered the company’s expansion plans. A number of regulatory obligations and the time and cost requiredhas delayed operations and expansion decisions as per the group.
The difficult business environment in the country has hampered the company’s expansion plans. A number of regulatory obligations and the time and cost requiredhas delayed operations and expansion decisions as per the group.
While on one hand the company is sure about opening 100 plus stores in India on the other it is uncertain by when it will be able to achieve the same because of too many roadblocks in smooth operations of the company. Be it GST, e way bill, packaging, licensing or paper work H&M feels there are too many roadblock to company’s plans for expansion and growth of retail space in India.
“Most probably we will see opening 100-plus stores in India, but what is the time span I don’t know… The outlook, we thought it would grow faster as per the potential, but what is making slow is the local regulations, which is very costly, taking lot of time and is putting your expansion on bit slow mode,” said Jane Einola, the Country Manager for Hennes&Maurtz Retail said.
He, however, is hopeful that the change in FDI norms of local sourcing among other steps by the government would help the business environment improve.
the company currently has 45 stores in the country, with the latest addition in Dehradun and is scheduled to launch its next store in Jalandhar, he said on the sidelines of Retail India Summit and Expo.
Talking of the online presence of the company, Einola said that online sales contribute 15 per cent to the company’s total sale volumes globally, while in India the share of online sales is higher than the global average.
