magazine interview with H M chairman Stefan Persson in May revealed that the company was exploring several Asian retail locations, including Singapore. The article noted how H M had opened in China and was scheduled to open its first store in Japan by 2008. "Other possibilities, like Singapore, are in the works", the report added.
A spokesman for H M told ! in an e-mail yesterday (July 4): "We want to grow in a controlled way, but of course Singapore is a very interesting market." The chain carries a wide range of runway-inspired outfits, office wear, lingerie, swimsuits and accessories, with dresses starting at about S$60 (US$39) and hair clips going for under S$5 (US$3.
28) a pop. It has made waves for collaborating with high-end designers like Stella McCartney, Karl Lagerfeld and Viktor Rolf for one-off collections. It has also worked with Australian pop star Kylie Minogue on a sexy swim wear collection.
In March this year, it opened its first Asian outlet in Hong Kong headlined by a clothing range by American singer Madonna. This was followed by two store openings in Shanghai. All three outlets drew large crowds and thousands of tourists.
In May, the publicly listed company announced a 31 per cent rise in net profit in the second quarter of the financial year to 3.46 billion kronor (US$513 million). As of May, it had 1,420 stores, including first outlets in Greece, Qatar and Slovenia.
H M is the world's second-largest retail chain behind Spain's Inditex, which owns high street label Zara and slightly higher end Massimo Dutti. Home-grown retail group RSH owns the franchise rights to the latter two brands in Singapore. British high street chain Topshop also franchises all its international stores and partners with Wing Tai in Singapore.
But the word on the street is that H M might be entering the retail scene here on its own, having turned down previous franchise requests from Singapore retailers. An industry insider says some brands prefer to enter a market through a local franchise partner because of the latter's knowledge of the market and experience in real estate and logistics. But the market in Singapore is relatively small, so international brands may decide to focus their efforts on larger markets, leaving operations to a local franchisee instead.
H M's only franchise operation is in the Middle East where stores are operated by M.H. Alshaya, the Kuwait-based conglomerate which runs British retail chains Boots and Debenhams, as well as American coffee chain Starbucks.
Retailers generally enter new markets on their own if they believe that store operations are critical to their success and would like a very high level of control. In any case, existing high street chains are not intimidated by the new competition. Helen Khoo, executive director of Wing Tai Retail which owns franchise rights to Topshop, Miss Selfridge, Karen Millen and Fox, says: "H M's entry validates Wing Tai's confidence in the Singapore marketplace as an important and internationally vibrant fashion retail destination.
" And shoppers certainly aren't complaining about a spike in cheap chic retail choices. "H M's the ultimate place for disposable fashion because the clothes are trendy yet affordable," says copywriter Charlene Chua, 26, who became a fan after shopping at its outlets in Europe. "I just hope the prices will be as cheap as they are in Europe.
" magazine interview with H M chairman Stefan Persson in May revealed that the company was exploring several Asian retail locations, including Singapore.
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