We are in dialogue with government on sourcing norms

JANNE EINOLA, India manager of H&M

NEWDELHI: Janne Einola is confident that the Swedish fashion retailer Hennes & Mauritz (H&M) will soon be the biggest international apparel retailer in India on the back of its new online store, outpacing Spanish fast fashion brand Zara. The 43-year-old has been working with H&M for 21 years and has been spearheading India business as country manager ever since it launched in 2015. The company had nearly doubled annual sales in India between December 2016 and November 2017 to about ₹950 crore from ₹491.5 crore. In an interview, he talks about the brand’s pricing strategy, strongest markets and why India needs to alter its sourcing norms. Edited excerpts:

Aren’t you a little late in the day in launching your online store?

It is early instead. We are one of the first brands that are here on 100% FDI and we are one of the few who are actually launching our own online store. We want to have a home store where we can guarantee the quality of products. Online store is a big milestone as a part of our expansion. The online store is hm.com. We have the same store in 44 global markets and India is the 45th. The online shop will be available for everybody across India.

How has your pricing strategy worked out in India? Do you plan to alter it?

India. We did not come with India-specific prices. These are global prices and so is the collection. We don’t see any need to touch the prices.

Which are your strongest markets?

India is one of the fastest growing markets for the company. We have been longest in Delhi and we are happy with the sales in all tier-I cities. Tier-II cities are the new markets

How has the Indian market changed over the years?

Digitisation has changed a lot of things globally especially the behaviour of customers. It’s no longer enough to just have a good product or a good price; it is about customer experience. We have to make it easier for the customers to shop and enhance their experience. India has changed in terms of ease of doing business.

How do you think the recent changes in FDI policy and sourcing norms will help international retailers like you?

can set off the overall sourcing with global sourcing. The changes will enhance the investment interest of many companies for India.

However, there is a room for improvement when it comes to the sourcing norms as these are not really fair. If a company enters with offline stores, it has to comply with the 30% local sourcing norms, even if it is sourcing more than that for global operations. But if it comes via online mode, it doesn’t need to comply with the sourcing norms. This doesn’t really make sense.

We are also in dialogue with the government on sourcing norms. We have been sourcing from India for 30 years; this should be taken into account.