Can you Start an H&M Franchise? – Cost & Profit
Are you looking for an International apparel franchise? Do you own a retail clothing store and not satisfied with profit & customer footfall? If given the opportunity, will you be ready to take up a fashion retail franchise in your city? Did your extensive research on fashion retail business has landed you on this page?
If yes, then, this article has been perfectly curated for you. In this article, We will cover an in-depth article on starting an H&M franchise in your city with its capital required, cost, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
We assure you that, after reading this complete article, you would be in a position to choose the BEST AVAILABLE APPAREL FRANCHISE, and certainly help you take an informed decision on the H&M chain.
- Brand: H&M Retail Stores
- Founded: 1947
- HQ: Sweden
- Industry: Fashion & Apparel
- No. of outlets: 4900+ in 74 countries
- Area Served: Worldwide
- Space required: Over 1500 sq feet
- Total Initial Investment: INR 1 Cr – 2 Cr
Table of Contents
Overview of H&M Franchise
Founded in 1947 by Erling Persson(A Swedish Entrepreneur), H&M(Hennes & Mauritz) is one of the leading, well-established, and rapidly growing Swedish multinational clothing-retail companies that offer a wide range of clothing, accessories, and cosmetics for men, women, teenagers, and children.
Ever since its inception, H&M has expanded its locations to over 4900 stores in 74 countries that made them one of the world’s largest fashion retailers. It has undoubtedly helped the chain to acquire a significant market share in the apparel industry across the globe.
As per the latest H&M conference, H&M is planning to expand its presence across India, the South America region, Albania, and online Ecuador will create enormous opportunities for interested applicants to grab and open an H&M outlet in their city.
Looks, promising right? Stay with us till last to know everything about the H&M Apparel chain.
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H&M – The Journey
Their humble beginning started with opening first Hennes store in the Swedish city Västerås back in 1947 to being one of world’s renowned fashion & apparel chain with close to 4900 outlets in 74 countries is undoubtedly inspiring.
Key facts about H&M
|1||Trade Name||H & M Hennes & Mauritz AB|
|2||Industry||Fashion & Apparel|
|4||Founders Or Parent Company||Erling Persson|
|5||Corporate Headquarters||Stockholm, Sweden|
|6||Number of locations||4900 plus outlets|
|9||Product offering||Clothing, Accessories, and Cosmetics|
|10||Revenue||SEK 223,553 million FY22|
Does H&M give Franchise in India?
As per our research, H&M does offer franchise programs but it is limited to a country-level organization. We also found that H&M is targeting the India, South American region, and other parts of the globe to expand its outlets via a franchise network.
Specifically, In India, H&M operates through its wholly-owned subsidiary H&M Hennes & Mauritz Retail Pvt. Ltd takes care of entire expansion programs for its retail presence through company-owned stores. It is also clear that H&M wants complete control over its operations and services, so its franchising opportunities are quite limited.
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How Much Does a H&M Franchise Cost in India?
Being a complete company-owned and operated chain, it may be extremely difficult to put this exact cost for the H&M chain. Nevertheless, considering its brand presence, premium apparel range, and being a part of the renowned unit, one may need to invest at least between ₹1 Crore to 2 Crore with an ample floor space of min. 1500 sq. ft.
The above mentioned franchise cost may vary depending on the chosen model, city, and outlet’s geographical location.
Additional Cost for H&M
Typically, to run and maintain an H&M retail outlet, one must adhere to their standards and be liable to pay a few additional costs such as Royalty fees, advertisement fees, maintenance fees, and a few other investments.
|Type of Fee||Cost and Other Details|
|Floor Area||Min. 1500 sq feet|
|Interior & Exterior Designing|
|₹30 lacs -₹ 40 lacs|
|Initial Stocking||₹ 35 lacs – ₹ 40 lacs|
|Furniture Work||₹ 10 lacs – ₹ 20 lacs|
|IT Support & Online Platforms||₹ 5- 7 lacs|
|Total Initial Investment||₹ 1 Crore – ₹ 2 Crore|
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Is H&M Franchise Profitable?
The profitability of H&M retail chain or any other franchise may depend on several factors such as chosen model, city, average footfall at its outlet, and overall area development.
Moreover, considering the enormous growth in the apparel industry- Specifically premium range, Moderate Investment, a wide range of products, best outlet selection, International presence, best marketing strategy, exemplary customer service, and regular Innovation, H&M retailer may anticipate earning a gross profit margin of 30-35%.
Why Choose a H&M Franchise?
Being a part of renowned group bring a huge responsibility to cater and full fill the demands for its customers. However, Incase of H&M may not require as such reason to choose this franchise as it is entirely a company-operated chain. Moreover, we have listed a few prominent reason for H&M growth in India and abroad;
- Being an International Brand:
- H&M is recognized as one of the world’s leading and rapidly expanding apparel chain that caters a range of fashion & cosmetics products.
- It helped the chain to gain a significant share in apparel Industry.
- Robust expansion plan:
- H&M has proposed an ambitious plan to open and operate a certain number of outlets by 2023 that will undoubtedly allow new franchisee owners to grab its outlet near their hometown.
- Repetitive Success Model:
- H&M has been continuously and consistently delivering higher success rates for its retail store, thanks to its site selection and marketing strategies.
- It has undoubtedly allowed the group to expand its reach via franchising to several other countries.
- Wide range of products for all-age group:
- H&M offers a wide range of products for all age group that helps the chain to full fill the rapidly growing demand.
- Robust Supply chain:
- The chain has robust supply chain systems across the globe, which helps the H&M group to offer new product ranges promptly.
- It enables the chain to have the best quality control, consistent pricing, better inventory management, and much more.
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What are the requirements to Become an H&M Outlet holder?
Some of their major H&M franchise requirements are listed below;
- First and most important – One should have the required funding to own an H&M retail outlet, that is one should be ready to invest approximately ₹ 1 -2 Cr.
- Interested applicants should have a passion to work in the apparel industry – and should possess the necessary leadership and financial skills with a few years of experience in this industry.
- Applicants should own/rent an outlet area for a minimum of 1500 to 5000 sq feet, preferably on the high street, city center, and near highways.
- Interested applicants are advised to dedicate themselves to the H&M business and follow the company standards and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by the franchise.
What is the Support offered by H&M Franchise?
- Site Search and Analysis
- Standard Layout support from the company
- Centralized billing systems
- Regular Products Innovations
- Quality checks and Inventory Support
- Staff Training Support
- Marketing & Sales grow up strategies and guidelines
- All Hands Meetings to improvise the business
- Location-specific promotions during the opening and planning of the launch
How to Get an H&M franchise?
Becoming a H&M outlet owner requires a huge investment that offers an impressive gross profit margin. However, its franchising opportunity is quite limited and it would be certainly difficult to anyone to being a part of it. Nevertheless, the H&M chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.
One can avail this franchise using below mentioned steps;
- Visit their Official page – and choose your respective country, navigate to the Contact Us page, and Email them with your complete personal information, experience, and business growth plans for H&M.
Additionally, we’ll again remind you that It is a solely operated and company-owned franchise network and it doesn’t follow “the external franchising approach” for its outlets’ expansion.
Started in 1947 by Erling Persson, H&M is one of World’s leading and rapidly growing premium fashion and apparel retail chains, offering a range of apparel, fashion, and cosmetic products for Men, Women, and Teenagers.
The franchise boasts over 4900 plus franchise networks in more than 74 countries and more outlets planned to release by 2023 will create tremendous opportunities for interested candidates to grab THIS deal in this ever-growing market.
However, considering the exponential rise in premium apparel demand, A range of products, moderate investment, International presence, extensive training, and market support aids as an extra advantage for the new franchisee unit holder.
With an Initial investment of ₹ 1 Crore – ₹ 2 Crore, H&M retail chain may offer an outstanding profit margin to its stakeholders and one may anticipate an exceptional gross profit margin of 30-35 % .
The Bottom line – In case you are interested in the Apparel industry and want to take advantage of the opportunity with a renowned group, then you can apply for a H&M outlet in India. With its immense legacy, expertise, and robust supply chain, one may experience stable and steady growth in their entrepreneurial journey.
So, what are you waiting for? Go and start your entrepreneurial journey with H&M!!
Good Luck!! Happy Franchising!!
Want to explore more? Then check out below franchising opportunities.
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Is H&M Franchise?
Ans: H&M does offer a franchise programs, but it is certainly limited to its own organization, as it wants to have a complete control over its quality & services. It expands its outlets through a country-level and country-operated franchisee partner.
Can I Start an H&M Franchise?
Ans: No, It is not for everyone. H&M’s complete units are company-owned and operated units that take care of its expansion and growth strategies.