Fashion giant H&M is stepping up expansion in emerging markets, betting that faster growth in countries like Brazil and India can offset weaker demand in its traditional strongholds of Europe and the United States, Reuters reported.
Chief Executive Daniel Erver said on Thursday that the Swedish retailer sees untapped potential in Latin America and South Asia as part of a broader strategy to strengthen profitability and sharpen brand appeal.
‘In markets we have not fully penetrated, we see greater opportunities for growth Brazil is one, Latin America overall is another, and India is also very promising,’ he told Reuters.
The company opened its first Brazilian store in Sao Paulo this August and plans to add two more before year-end, with four additional sites, including one in Rio de Janeiro, set for 2026.
H&M is also preparing to launch in Venezuela this quarter, enter Paraguay next year, and recently opened in El Salvador.
India will play a central role in the push. H&M’s premium label Cos, known for affordable luxury items like $149 dresses and $299 cashmere sweaters, will debut in New Delhi later this year. Erver called India a ‘super interesting’ market for accessible high-end fashion and confirmed plans to visit the country soon.
The international drive comes as H&M trims its global footprint. Store numbers have fallen 19% since 2019 to 4,118 at the end of last month the lowest level since 2016.
Another 200 closures are planned in 2025, mainly in mature European markets. Rival Inditex has also reduced its network, ending July with 5,528 Zara stores worldwide.
Analysts remain cautious. Danske Bank’s Daniel Schmidt noted that while the Brazilian launch has been positively received. It is unclear how quickly expansion will translate into higher sales. Still, Erver argues that diversification across new geographies is essential as tariffs pressure US demand and European shoppers tighten their budgets.
