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H&M vs. Zara vs. Uniqlo: Tracking their growth in India during FY24

EntrackrEntrackr · 6m ago
H&M vs. Zara vs. Uniqlo: Tracking their growth in India during FY24
Medial

H&M vs. Zara vs. Uniqlo: Tracking their growth in India during FY24 While Indian apparel brands like Rare Rabbit are making inroads into the Indian middle-class wardrobe, a significant portion of millennials and middle-class consumers continue to prefer global fashion brands such as Zara, H&M, and Uniqlo. The growth of these international brands is the result of rising disposable incomes, rapid urbanization, and an increasing demand for evolving fashion trends. According to the McKinsey Fashion Growth Forecasts 2025, retail sales of luxury brands in India is poised to outnumber the US, Europe, and China in terms of growth. The report highlights that luxury brands in the country will rise by 15-20% year-on-year in 2025, faster than the US (3-5%), Europe (1-3%), and China (0 to -3%). Uniqlo has recorded higher year-on-year growth compared to Zara and H&M in India. However, the Japanese brand has been in the country for only five years, whereas the other two (Zara - 2009 and H&M - 2015) have been operating in the Indian market for a much longer period. To learn the growth of these three global brands, Entrackr has dived deep into their annual financial results for the last fiscal year (FY24). Hennes & Mauritz India (H&M) led the pack with Rs 3,278 crore in revenue for FY24, registering an 11.4% YoY growth from Rs 2,942 crore in FY23. The brand's entire revenue came from apparel, accessories, and footwear sales. Currently, it operates 64 stores across India. Its competitor, Zara, secured the second spot with Rs 2,769 crore in revenue for FY24, reflecting an 8.4% increase from Rs 2,554 crore in FY23. Like H&M, Zara generates revenue from apparel, accessories, and footwear sales and currently operates 21 stores across India. Uniqlo entered the Indian market after launching its first store in Delhi in 2019. The brand recorded Rs 815 crore in revenue for FY24, marking a 31% YoY growth from FY23. It currently operates 15 stores across India. In terms of expense distribution, procurement costs accounted for 42.2% of H&M's total expenses, 70% for Zara, and 55.2% for Uniqlo. Meanwhile, employee benefit expenses stood at Rs 150 crore for H&M, Rs 81 crore for Zara, and Rs 82 crore for Uniqlo. Ultimately, Zara reported a profit of Rs 244 crore, while H&M and Uniqlo recorded profits of Rs 7 crore and Rs 85 crore, respectively. Notably, their expenses towards support fees and royalties to parent entities stood at Rs 190 crore for Zara, Rs 865 crore for H&M, and Rs 27 crore for Uniqlo. Notably, the average revenue per store for H&M, Zara, and Uniqlo stood at Rs 51.2 crore, Rs 54.3 crore, and Rs 131.9 crore, respectively. The sales per store numbers reflect the premium perception around these stores, with Zara and Uniqlo generating higher same-store sales. However, the 'mature' growth rates for Zara and H&M are a warning sign for Uniqlo as it increases the number of stores. Zara’s far higher profits and margins testify to the strong loyalty and brand salience it enjoys, while Uniqlo has turned in an equally strong performance. H&M is placed in a more fragile position in terms of margins and perception, where homegrown brands like Zudio could attract many of its buyers. It is expected that FY25 will see these strengths and weaknesses play out, with Zara and Uniqlo likely to widen the gap on margins, while reducing the gap on sales with H&M, unless the latter finds a new growth phase with sharper differentiation.

Magicpin adds 6,000 stores in FY25, drives $120 Mn fashion sales

EntrackrEntrackr · 4m ago
Magicpin adds 6,000 stores in FY25, drives $120 Mn fashion sales
Medial

Magicpin, a platform focused on offline retail, has added 6,000 new fashion stores from over 100 brands in the last fiscal year (FY25). This takes its total to 16,000 stores and over 250 brands in the fashion category. In the same period, the platform helped generate Rs 1,000 crore ($120 million) worth of business for these fashion brands. Some of the major brands onboarded in the last two years include Puma, Van Heusen, Shoppers Stop, Levi’s, and Bata. "We are excited to witness the robust growth of our fashion business, which has been a core focus area for us. Adding 6000 fashion stores across 100 brands taking it to 16,000 fashion stores and 250+ brands live on the platform highlights the immense value magicpin creates for offline retailers and brands,” said Naman Mawandia, CXO - Enterprise Brands at magicpin. Magicpin operates in 20 cities and uses real-time data to offer targeted promotions. It works on a pay-per-conversion model, helping brands increase sales through local campaigns. The company launched a new deal section called ‘magic9’ on its homepage. It offers product-level promotions on fast-moving items with low prices to make buying quick and easy. Magicpin also claims to have doubled its fashion catalogue to 10 million SKUs and plans to grow further in 2025. The company said it aims to partner with more fashion stores as demand for both Indian and international brands increases. The firm currently offers rewards and discounts across more than 275,000 stores, covering food, fashion, and other categories.

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