H&M Plans To Eat Into Sub Sahara Fashion Market By Entering Via South Africa

by Abigail Oluwakemi
78 views
If You Like This Article Kindly Give Us A Share!

Swedish fashion retailer H&M, Europe’s second-largest clothing retailer, launched its first South African shop Friday with more in the works and plans to use South Africa as a springboard to the rest of sub-Saharan Africa, IndependentOnline reported.

H&M (Hennes & Mauritz) opened at the V&A Waterfront in Cape Town and is exploring the feasibility of opening a local manufacturing facility.

More stores are planned including one this month in Johannesburg’s Sandton City as well as others in Southern, East and West Africa.

 

H&M does not offer store credit like a lot of other retailers do because its focus is on selling fashion, not running finance operations, said Par Darj, the country manager for H&M South Africa. The company will differentiate itself in South Africa by focusing on what it does best –being a traditional retailer, Darj said.

He described H&M’s merchandise as “democratic fashion” — high quality, easy and affordable for people who ordinarily might not be able to buy fashion.

South Africa is a fashion-oriented market, Darj said. “There is a very big fashion interest, especially if you look at the middle class and the aspirational market.”

Darj worked as H&M country manager in the U.S. from 1999 and 2001, and country controller for H&M England in the 1980s.

A lot of retailers hurt themselves when it came to extending credit — trying to be a bank and a retailer, Darj said.

“If you want to be a bank that is fine. We will focus on retail…We don’t offer credit, but you can pay with your credit card.”

South African retailers are currently between a rock and a hard place as high consumer debt weighs on household spending and competition puts pressure on margins, IOL reports.

H&M’s entry into South Africa resulted in about 600 jobs leading up to the opening of the V&A Waterfront and Sandton City stores with 60 staffers sent to Sweden for training. H&M plans to have as many as 1,500 people employed within 12 months.

In the long run, H&M plans to use South Africa as a springboard to the rest of southern Africa, East and West Africa.

H&M is thinking about opening a local manufacturing facility, Darj said.

It already has a production factory in Ethiopia, opened in 2014. “We will see what is possible in South Africa,” he said.

H&M’s arrival is part of a flurry of activity for South Africa’s large shopping centers, where demand for space from other top international brands has included Burberry, Cotton On, Top Shop and Zara.

H&M will probably learn from the expansion strategies of its peers Zara and Cotton On, said JP Verster, an analyst at 36One Asset Management, IOL reports.

Zara had a cautious strategy of opening a handful of stores in South Africa, Verster said. Cotton On had an aggressive strategy.

H&M operates 3,500 stores in 57 countries including Egypt and Morocco.

Source: afkinsider.com

South Africa

 


Remember to Shop Your Print Look from Our Online Boutique at http://www.fashionghana.com/shop

See More Here http://www.fashionghana.com/shop

Related Posts

Leave a Reply (Comments with phone numbers will be deleted, Also if this is your first comment on FashionGHANA.com you will need to await approval)

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close ✕

Currency Converter

Currency conversions change from time to time, this may alter the price of the outfit on a later date.

Price Filter

$$

Search Product Type

  • (38)
    • (3)
    • (34)
    • (1)
  • (3)
    • (2)
    • (1)
      • (1)
  • (37)
    • (3)
    • (4)
      • (1)
      • (3)
    • (31)
      • (17)
        • (1)
        • (3)
        • (1)
        • (1)
        • (5)
        • (1)
        • (1)
        • (2)
      • (1)
        • (1)
      • (10)
        • (1)
        • (1)
        • (3)
        • (2)
        • (1)
        • (2)
      • (3)
      • (7)
        • (1)
        • (5)
      • (1)
    • (1)
      • (1)
0
Subscribe To FashionGHANA.com
Get All The Latest Updates In Trends, Style & the African Fashion Industry
No Thanks
Thanks for signing up. You must confirm your email address before we can send you. Please check your email and follow the instructions.
We respect your privacy. Your information is safe and will never be shared.
Don't miss out. Subscribe today.
×
×