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H&M

Fashion retailer H&M plans Ethiopia expansion

Swedish fashion retailer Hennes and Mauritz (H&M) said Friday it would expand its network of suppliers to Ethiopia, after concentrating 80 percent of its production in Asian countries.

Fashion retailer H&M plans Ethiopia expansion

“We are an expansive company and are constantly looking at new potential purchasing markets to guarantee that we have capacity to deliver products to all stores in our expansive markets,” H&M spokeswoman Camilla Emilsson-Falk told AFP.

“We do that by increasing the productivity on the existing production markets as well as looking at new markets,” she added.

Test orders have been placed with Ethiopian suppliers and new factories will be built this autumn, but it is too early to say how many suppliers will be used and when the factories will be ready for production, according to Emilsson-Falk.

The East African country has had a long history in textile, leather and shoe production since its Italian occupation in 1939. Other apparel retailers have already begun sourcing products in the country, including Tesco and Chinese shoe-manufacturer Huajian, providing footwear to Guess and Tommy Hilfiger.

“Ethiopia is a country with strong development and we trust that we can sustain economic growth and job opportunities there,” said Emilsson-Falk.

Despite strong economic growth, 9.9 percent on yearly average since 2004 according to the World Bank, the sub-Saharan nation remains one of the world’s

poorest. And one year after the death of prime minister Meles Zenawi, the country is still criticised for its lack of human rights by watchdog organisations.

“We did an extensive risk analysis for Ethiopia, looking at human rights and environmental issues in the country,” said Emilsson-Falk.

“We have worked with improvement of working conditions in our production countries for many years and will apply our experience when establishing relationships with the Ethiopian suppliers.”

H&M, which has stores in Egypt and Morocco, has no concrete plans for further expansion in Africa.

Two Swedish journalists who were kept in jail for 14 months in the country were released in September 2012.

TT/AFP/The Local/pvs

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H&M

H&M competitor to sponsor Sweden’s Olympic team

Six months after establishing itself in Stockholm, Japanese clothing brand Uniqlo has announced it will sponsor Sweden’s athletes at the 2020 Olympics.

H&M competitor to sponsor Sweden's Olympic team
Anna Hasselborg of Sweden's curling team tries out new kit supplied for the country's athletes by Uniqlo. Photo: Henrik Montgomery/TT

The clothing chain, one of the world’s fastest-growing retail companies, is also set to open more stores in the Scandinavian country.

“Swedes are so sophisticated and warm-hearted,” Uniqlo Europe CEO Taku Morikawa said, stressing how welcome his company has been made to feel.

Morikawa was in Sweden to present the partnership between Uniqlo and the Swedish Olympic Committee at an event at Uniqlo’s store on Hamngatan in Stockholm.

Sweden’s athletes wore teamwear supplied by H&M at the last two Olympic Games.

The Stockholm store, Uniqlo’s first in the Nordic region, opened its doors in August 2018. An expansion is now planned on the Swedish market, although Morikawa declined to reveal where.

“We definitely have plans to open more stores here,” he said.

A store will also open in Danish capital Copenhagen in the coming spring as Uniqlo’s holding company Fast Retailing continues its global expansion.

Sales figures in Sweden’s clothing retail sector have seen a downward trend in recent years, with an exception in 2015.

H&M is usually cited as one of Uniqlo’s main competitors.

The impact of a new player on an already-competitive market is difficult to predict, according to the Swedish Trade Federation (Svensk Handel).

“Locally, competition is sharpened, but competition is already fierce. I would be inclined to say that this type of partly new concept store can, instead, help to revitalise the physical retail sector for clothing,” the association’s head economist Johan Davidson said.  

READ ALSO: H&M profit down sharply despite rise in online sales

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