Swedish H&M to open two stores in Jakarta this year
The Jakarta Post
H&M, a Swedish fashion and lifestyle retailer, is in preparation for the opening of its two stores in Jakarta this year in a bid to capitalize from the middle class market in the country.
Here, the retailer known also as Hennes & Mauritz AB, will be working with PT Hindo which serves a franchise operator.
PT Hindo country manager Sanveer Gill said H&M is looking forward to bringing something new
'We are excited to finally have H&M stores in Indonesia, and to be expanding within the Southeast Asian market,' he added.
The H&M brand itself has roughly 2,900 stores in around 49 markets worldwide. Germany is the brand's main market, with the US, UK and France trailing behind.
The group already has stores in Southeast Asian countries such as Singapore, Malaysia and Thailand.
Karina Soegarda, the spokesperson for H&M Indonesia, confirmed the first two H&M stores would start operations before the end of this year.
'The first store at Gandaria City shopping mall is slated for opening in the third quarter of the year,' she said, adding that it would measure approximately 2,400 meters square.
The second store, occupying 1,700 meters square of space at Pondok Indah Mall, would open 'shortly after' the opening of the first store, she said.
'We will then open our flagship store, the largest of the three, at Grand Indonesia shopping mall next year,' she added.
This flagship store, scheduled for inauguration in March 2014, is 4,000 meters square large.
'The flagship will carry the most complete H&M collection,' Karina said, adding that after the flagship, H&M looked to 'expand more'.
Karina added that the shops would showcase the full international collection of H&M, with clothing and accessories for men, women and children.
'However, a majority of the items would be for women,' she said, adding that H&M would present their house brands.
She further added that the retailer would target the country's growing middle and upper market segments by offering 'quality yet affordable fashion'.
In a showcase of the H&M collection to the press, items such as accessories carried price tags of
Rp 50,000 while certain clothing items cost roughly Rp 700,000.
Across various studies, Indonesia's middle segment is expected to grow and in turn, fuel the economy through consumption.
A study by global management consulting firm McKinsey estimates that by 2030, as many as 90 million people would classify as middle class, or those with annual net income surpassing US$3,600.
The ample net income of this large segment translates into $1.8 trillion in new business opportunities.
The significant market potential has drawn large international retailers to step into the market this year and the next.
Renown French fashion retailer, Galeries Lafayette, opened their flagship department store at Pacific Place shopping mall in Jakarta earlier this week together with local partner, PT Mitra Adi Perkasa (MAP).
Other retail giants weaving their way into the country are Uniqlo from Japan and Central department store from Thailand.
Karina further pointed out that H&M would face off competition by focusing on products available at their shops.
'We want to give as many options to customers,' she said.
You might also like :
- Wealth of four richest Indonesians equal to wealth of 100m poorest
- Jokowi threatens to take action if Freeport are 'difficult'
- COMMENTARY: Freeport's threat of arbitration simply a ploy to block mining reform
- BI predicts lower GDP growth in first quarter
- Indonesia drafting rules to end bank secrecy
- Democracy ‘gone too far’: Jokowi
- OJK to launch first green bond mechanism
- Indonesia seeks Saudi Arabia’s support to develop Sumatra tourism
- Transportation Ministry to issue NOTAM for King Salman’s arrival
- Madame Tussauds Hong Kong to feature Jokowi wax figure this summer