Why H&M is shifting its India HQ from Delhi-NCR to Bengaluru
H&M’s move to Bengaluru follows quick commerce company Zepto’s relocation from Mumbai to Karnataka's capital, which boasts a burgeoning fashion and tech ecosystem. Bengaluru is home to Myntra and Ajio headquarters, Arvind Fashion, and numerous D2C fashion brands.
Swedish fast fashion retailer H&M (Hennes & Mauritz) is moving its Indian headquarters from Delhi-NCR to Bengaluru, aiming to leverage the city’s ecommerce and fashion tech ecosystem, according to sources familiar with the matter.
H&M, which has over 100 employees in its corporate office, is reportedly shifting operations from its Saket office in Delhi to a location in North Bengaluru. The company did not respond to queries from YourStory regarding the move.
Last year, Louis Coucke, H&M India's CFO and Country Controller, stepped down to join the Dubai-based Albatha Group. Eric Bennici, a long-time H&M executive succeeded Coucke, as confirmed by the company at the time. In 2024, H&M also appointed Helena Kuylenstierna as its India Director.
The fashion giant, which operates around 65 stores in the country, competes with global brands like Zara and Uniqlo, as well as a growing number of domestic startups.
Bengaluru has become a key destination for companies seeking top-tier talent in ecommerce, tech, and fashion.
The city is a hub for both traditional and digital-first apparel brands, including companies like Rare Rabbit, Mensa Brands, Newme, BlissClub, Snitch, Wrogn, Arvind Fashion, and Aditya Birla Group’s house of brands business, TMRW.
It also holds a strong foothold in the fast-fashion segment, with Tata Group’s fast-fashion venture Zudio originating in Bengaluru. Competitors like Reliance Retail and Aditya Birla Group have similarly launched fast-fashion offerings in the capital city of Karnataka.
Adding to its appeal, Bengaluru houses major fashion and ecommerce platforms like Walmart-owned Myntra, Reliance’s Ajio, Flipkart, and Meesho.
H&M—which previously sold exclusively on Myntra—expanded its presence last September when Ajio announced it would also carry the Swedish retailer's products. Since the COVID-19 pandemic, ecommerce has emerged as a crucial channel for fashion retailers, prompting them to develop dedicated strategies, unlike in the past when it held less significance.
H&M’s relocation follows a similar move by quick commerce player Zepto, which shifted its headquarters to Bengaluru to capitalise on the region’s talent pool. Quick commerce companies, too, are expanding into new categories, including fashion and electronics.
These changes occur against the backdrop of Chinese fast-fashion giant Shein planning its return to India in partnership with Reliance.
Amid intensifying competition in India, leading players like Uniqlo, M&S, Zara, and H&M have faced sluggish growth and declining profits in FY24, impacted by subdued discretionary spending and a high inflationary environment.
H&M reported an 11% rise in operating revenue, reaching Rs 3,278.4 crore in FY24, as per filings with business intelligence platform Tofler. However, its net profit plunged 80% to Rs 8.32 crore from Rs 43.6 crore in the previous year. This follows a robust 40% growth in revenue to Rs 2,942 crore in FY23.
Globally, Stockholm-listed H&M reported flat sales and lowered profits in its third-quarter earnings affected by currency fluctuations, winding-down costs, and rising living expenses.
Edited by Suman Singh