I assumed H&M’s lower price point would translate into healthier profits.
H&M may lead in total sales, but it’s shelling out 4.5× what Zara pays in royalties — ₹865 Cr vs Zara’s ₹190 Cr, eating into margins⤵️ (source - Entrackr)
From what I’ve seen
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Vishu Bheda
•
Medial • 2d
Is anyone explain me, why H&M pays so much high royalty as compared to zara and uniqlo?
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I assumed H&M’s lower price point would translate into healthier profits.
H&M may lead in total sales, but it’s shelling out 4.5× what Zara pays in royalties — ₹865 Cr vs Zara’s ₹190 Cr, eating into margins⤵️ (source - Entrackr)
From what I’ve seen
Can anyone please explain me the royalty thing which is shown in shark tank like I'm dumb?
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