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H&M builds major presence in Mideast
Swedish fashion chain Hennes & Mauritz (H&M) will officially break into the Middle East retail market on Wednesday with two store openings in Dubai's Mall of the Emirates and a third set to open in Ibn Battuta Mall on September 13.
- By Robert Ditcham, Staff Reporter
- Published: 00:00 September 6, 2006
Dubai: Swedish fashion chain Hennes & Mauritz (H&M) will officially break into the Middle East retail market on Wednesday with two store openings in Dubai's Mall of the Emirates and a third set to open in Ibn Battuta Mall on September 13.
Following its success in Europe, where robust growth bucked market trends, the clothing company is planning to establish a significant Gulf presence after its openings in Dubai and in Kuwait's Marina Mall on September 20.
The chain is renowned for designing affordable but highly fashionable clothing for men, women and children and boasts more than 1,200 stores in 22 countries.
With pop diva Madonna at the forefront of its marketing campaign and avant-garde Dutch designers Viktor and Rolf contributing to the Dubai range, H&M chairman Stefan Persson is confident of regional success.
"There are a lot of fashion-conscious people from Middle Eastern countries who shop in our European stores and greatly appreciate what we are offering. I am confident the brand is already well known and the demand is here," he told Gulf News.
H&M's entrance into the Middle East retail market follows a franchise agreement with M.H. Alshaya, the Kuwait-based conglomerate which runs Boots, Debenhams and Starbucks Coffee.
Persson denied that H&M will lose control of its brand strategy, arguing that Alshaya's regional experience will help it break into the Gulf's complex retail market.
"The market is new to us and the franchise business is new to us, but it's a market which is perfectly suited to this type of arrangement. Alshaya knows the market, the regulations, the authorities, and the shopping patterns," he said.
The Gulf's huge mix of nationalities and tastes adds its own challenge for any new retailer attempting to get the right selection of garments, a fact Person says he is fully aware of. A traditional consumer preference for branded items is another hurdle facing the company.
"The learning curve is never-ending it's a continual process of improvement," he said. "But we are confident we will get the brand 100 per cent right very shortly. There's always a market for affordable fashion and we can appeal to a broad spectrum of nationalities and age groups."
H&M also faces competition from rivals Zara, Gap and the UK clothes retailer New Look companies which have many years of combined experience in Gulf countries.
Persson played down the competition, claiming the combined store presence of each brand will increase overall mall footfall counts.
The company will also use the huge power of its marketing arm, churning out huge billboard adverts and slots in the fashion press and on television.
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