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By Luciana Magalhaes
SAO PAULO (Reuters) -Swedish fast-fashion retailer H&M opened its first physical store in Brazil on Saturday and launched online operations in the country, where it is already producing some items locally, including footwear and beachwear, an executive said.
The short-term goal is to open four stores in Sao Paulo state over the coming months, Joaquim Pereira, H&M Brazil’s country manager, said in an interview on Friday.
“This courtship with Brazil has been going on for a long time,” he added, noting that the move took years of planning.
H&M aims to compete locally, but not necessarily against Chinese brands such as Shein, which often have below-average prices, the executives said.
“In Brazil there are many national brands that are very good, really very good. In terms of price, in terms of quality. I think it’s a very, very competitive market, regardless of whether it’s a Chinese company or a local company,” said Pereira.
The company did not disclose its total investment in Brazil.
The first Brazilian store, in an upscale shopping mall in Sao Paulo, focuses on women’s fashion. The second, set to open soon, will offer a wider assortment of products including women’s, men’s and children’s clothing, accessories and shoes.
“We want to have pricing that is inclusive,” said Magnus Olsson, H&M’s regional manager for the Southern Hemisphere.
The company plans to increase local production while maintaining global standards, said Olsson. For now, H&M is producing shoes, beachwear and jeans in Brazil and importing the other products from different markets, including India, Bangladesh and Portugal.
The executives said H&M will eventually open stores in other Brazilian states, without elaborating.
The chain also has a 25,000-square-meter distribution center in the southeastern state of Minas Gerais that can be expanded to about 40,000 square meters.
(Reporting by Luciana Magalhaes; Editing by Richard Chang)
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