H&M Manila is not a joint venture

Last October, I wrote about the opening of H&M in Manila after business sources reported that they have applied with the Board of Investments. With news this week saying that the first H&M store will be located in SM Megamall, presumptions were rife that the world’s second largest apparel retailer has teamed up with the SM Group which already holds the Philippine franchise to big brands like Uniqlo and Forever21. However, this is not the case as H&M is entering the Philippine market on its own and not with a local partner.

Here’s the reply of the H&M HQ in Sweden after I tried to send them some questions:

h&m email

Most likely, H&M (Hennes & Mauritz AB) qualifies as a Category C investor under the Retail Trade Act of 2000 which liberalizes the entry of foreign retailers into the country. Under this category, “Enterprises with a paid-up capital of the equivalent in Philippine Pesos of Seven Million Five Hundred Thousand US Dollars (US$7,500,000.00) or more maybe wholly owned by foreigners: Provided, however, that in no case shall the investments for establishing a store in Categories B and C be less than the equivalent in Philippine Pesos of Eight Hundred Thirty Thousand US Dollars.”

The H&M Group has six different labels under its umbrella – H&M, Monki, COS, Weekday, Cheap Monday, and Other Stories. It employs approximately 100,000 people in 43 countries and had almost 3,000 stores as of end of 2012 alone.

Anyway, H&M’s entry is good news to the country in dire need of legit investments and also good news to us who love good affordable fashion. We can’t wait for H&M’s Manila opening :)

H&M is indeed coming to the Philippines!

….. but we just don’t know when :)

Sources said H&M (short for Hennes & Mauritz) has applied with the Board of Investments, an agency under the Department of Trade and Industry.

But contrary to speculation, the Swedish clothing retailer is not teaming up with SM Retail Inc. to avoid direct competition with other brands the SM group has already franchised – Forever 21 and Uniqlo.

More likely, H&M will enter the Philippines as a wholly-owned foreign retailer firm where investment rules state that you can qualify if you have paid-up capital of $7.5 million or more, under Category C.

H&M trails Zara among the world’s biggest fashion retailers with appoximately 3,000 stores in 53 markets. In Asia, the Swedish label already has presence in China, Hong Kong, Singapore, Malaysia, Japan, South Korea, Thailand and Indonesia.

What to love about H&M? Fashion and quality at the best (wallet-friendly) prices, of course. They have really good office jackets which you can buy at half the price or less of what you otherwise pay for in Mango, Zara and other high street brands.

Until a few months ago, I loved browsing around H&M’s flagship store in Central (HK) before it closed due to high rent.

H&M

Filipinos really have to go abroad to shop H&M or just buy from online retailers at higher prices.

Aside from SM Retail, fashion retail in the country is dominated by Stores Specialists Inc. (SSI) of the Rustan’s group which holds the franchise to 75 or so top foreign brands among them Zara, Gap, Banana Republic, Burberry, Cartier, Marks & Spencer and others.

Global website: www.hm.com