H&M: Strong Expansion Plans Will Fuel Revenue Growth In 2015

Leah Grace Capitan profile picture
Leah Grace Capitan
32 Followers

Summary

  • H&M opened its first store in the Philippines on October 17, 2014.
  • In 2015, H&M will open in India, South Africa, Peru, Taiwan and Macau.
  • H&M upscale brands COS and & Other Stories opens online and offline in the US.

International expansion

In the Philippines, where I recently visited, North American and European brands reign whether it's fashion or food. Brands such as Inditex Zara, Forever 21, Topshop, etc. have been in the country for year. On October 17, 2014, H&M (OTCPK:HNNMY) finally opened its first store - a 3,000 square meter and three-storey space - and is set to open 4 more stores in Metro Manila within the next year.

Meanwhile, store openings in India, which were originally set for November 2015 has been moved to spring 2015 in Delhi and Mumbai. According to the company's latest nine-month report, it also plans to open stores in South Africa, Peru, Taiwan and Macau in 2015.

Upscale brands expansion in the US

Despite its premium and conscious collections, H&M has been mostly perceived as cheap clothing that you can wear once or twice. Every once in a while, the company builds hype with its designer collaborations such as the most recent collaboration with premium designer Alexander Wang on November 6, 2014.

The market of professional women in the US who appreciate trends and fashionable details on relatively well-made and reasonably-priced clothes usually flock to Inditex' Zara or Uniqlo. H&M's sister brands, COS and & Other Stories are set to change that.

COS (Collection of Style) classic and minimal style was launched in 2007 in Europe and has only recently entered the US market. The store's e-commerce shop for the US launched on May 2013 and the first brick-and-mortar store opened in LA on October 30, 2014. Another COS store is set to open in New York within the next few months.

& Other Stories, which also plays to a classic, minimal style but with a touch of whimsy, was launched in March 2013 in Europe. It launched its online store in the US on October 15, 2014

This article was written by

Leah Grace Capitan profile picture
32 Followers
I write about technology and fashion; leveraging my experience co-founding a software startup and my MBA.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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