Apparel Online Bangladesh Magazine Magazine March 2018 | Page 71

WORLD WRAP
H&M sales grow
twofold in India;
4% globally
Swedish fashion retail company, H&M, has reported a twofold
increase in its India sales to Rs. 954 crore in the year ending
November 2017 as compared to Rs. 490 crore in the same period
of 2016. H&M, which made its India entry in October 2015,
follows December-November as the financial year. Since its foray
into the Indian market, the brand has opened a total of 27 stores
till date. The fashion retailer is further considering increasing
its store count in India to around 50 with an investment of
Rs. 700 crore in the next two years. It is also geared up to kick-
start its e-commerce operations in the country this year.
Burberry has taken the initiative and launched
a geo-fenced store in Soho that advertises
products to passers-by and gives their sales
assistants/customers information so that they
can identify their returning customers.
adopting e-commerce as a driving
habit in retail, according to Boston
Consulting Group. The rate of growth
of e-commerce as a portion of retail in
China is particularly striking; it’s going
to grow twice as fast as the US and UK
at about 20 per cent annually.
Why is m-commerce so
appealing to customers
and retailers…
Among the most important features,
besides convenience and payment
security that drew customers to
mobile applications are: Push
Notifications, Geo-Fencing and
Personalisation. Retailers are
effectively using apps to generate
text message style pop-ups that keep
customers informed on application
updates. Such push notifications
are appealing to fashion retailers
who want to keep their customers
informed about the right information
but do not overburden their view.
Consumers are seeming to be
accepting push notifications, a study
by Localytics shows that e-commerce
has been the most successful area
in mobile purchasing through
implementing push notifications and
holds the highest response rate.
Another interesting advantage is
that retailers can access the location
of the mobile user and accordingly
send information on location-specific
deals and offers. For fashion retailers
and luxury brands, this tool can
complement both online and offline
operations. Burberry has taken
the initiative and launched a geo-
fenced store in Soho that advertises
products to passers-by and gives
their sales assistants/customers
information so that they can identify
returning customers.
With shoppers becoming extremely
choosy and difficult to please,
personalisation has become an
important tool to not only garner
sales, but also retain customer
loyalty. Through the m-commerce
route, fashion retailers can link
social media accounts to applications
and share purchase information,
view items and favourite pictures if
the user accepts. This then opens the
door to multi-channel advertising as
the activity of one platform is now
advertised across a multitude of
viewing options. The customer feels
like he/she is important to the retailer
and is getting personalised attention,
as per his/her taste preferences.
The brand is giving tough competition to global brands such as
Zara, GAP, Levi Strauss, Benetton, M&S that have been present
in India for quite some time. Apart from India, H&M continued
to grow globally in the year 2017. During the year under review,
the fashion label reported a 4 per cent increase in its sales
(including VAT) to SEK 2,31,771 million as against SEK 2,22,865
million in 2016. However, the fashion retailer reported a 4 per
cent decline in its global sales (including VAT) to SEK 58,481
million in the fourth quarter of 2017 against SEK 61,098 million
in the prior year’s corresponding period. The clothing chain that
runs more than 4,700 stores worldwide reported an increase
in its gross profit to SEK 1,08,090 million compared to SEK
1,06,177 in 2016. In 2017, H&M launched its online platform in
eight new markets and opened brick and mortar stores in five
new countries. The company now expects to note a 1 per cent
increase in sales including VAT in local currencies between
December 1 (2017) and January 31 (2018).
Amazon to set up
new Fulfilment
Centre in UK
US online retail giant, Amazon Inc., is opening a Fulfilment
Centre (FC) in Rugby, Warwickshire (UK) to increase its
warehousing network and meet the rising demand for its
products in the region. The new fulfilment centre will create 400
new jobs in the area. The latest job creation will be an addition
to the current workforce of more than 2,500 in the region. The
retailer presently employs 24,000 people in the UK.
It will be the fourth fulfilment centre of Amazon in the Midlands
apart from its warehouses in Rugeley, Coalville and Daventry.
These centres were opened in 2011 and 2016, respectively. The
company has already commenced the recruitment drive for the
upcoming FC in key roles of operations managers, engineers,
HR and IT specialists. It will soon start the hiring process for the
staff to be associated with pick and pack and will ship customer
orders as well. Additionally, the e-commerce mammoth has also
disclosed its plans to set up three more FCs in Bristol, Bolton
and Coventry this year which will increase its warehousing
capacity in the UK to a great extent.
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