H&M Shifts Focus to India & Brazil as Western Shoppers Pull Back
Fashion retailer H&M is doubling down on emerging markets as demand in the U.S. and Europe cools. The company is accelerating expansion in Brazil—where it opened its first store in São Paulo in August—and naming India as a major growth bet, including a planned launch of its premium label COS in Delhi. The push comes alongside continued store rationalisation in mature markets and tougher competition from Zara and Shein.
What’s new
- Brazil entry: First store opened in São Paulo with online launch; more stores planned across the state and beyond.
- India focus: Sharper positioning and new city rollouts; COS store planned in Delhi to target “affordable luxury”.
- Portfolio reshuffle: Select closures in low-performing Western locations while investing in key flagships globally.
Why it matters
- Growth pockets: India’s young shoppers and Brazil’s large apparel market offer headroom even as Western demand softens.
- Localisation: Early moves toward local manufacturing and distribution in Brazil can lift speed-to-market and margins over time.
- Brand mix: Expanding COS in India helps H&M tap higher average order values without abandoning mass-market roots.
By the numbers
- São Paulo launch: Store + e-commerce went live together—backed by a new distribution footprint and plans to open more sites.
- Global pruning: H&M continues to trim stores in slower markets while adding flagships in key cities.
What to watch next
- Speed of COS rollout in India (Delhi first, then other metros).
- Brazil store pipeline beyond São Paulo—Rio and secondary cities in 2026.
- Whether localisation (sourcing / light manufacturing) scales in Latin America.
Labels:
Retail • India • Brazil • H&M • COS • Emerging Markets
Read the Reuters report ↗
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