The H&M chain of clothing stores (Hennes & Mauritz AB) is considering the possibility of organizing production at Russian factories, Saed-El-Ashkar, the general director of the retailer in Russia, said in an interview with Interfax.
He explained that the company does not have its own factories, so it places orders with independent supplying factories in various countries, including India, Bangladesh, China, Turkey and Portugal. Production capacity and ease of logistics are key when choosing a supplier.
“The global team regularly monitors the situation in different markets and looks for the best options for building a production network. The possibility of production in Russia is also being considered, ”said El-Ashkar.
H&M was founded in Sweden in 1947. The company also owns the brands COS, Monki, & Other Stories, Weekday, ARKET and Afound and H&M Home stores. At the end of the second quarter of fiscal year 2021, H&M sales in Russia increased 2.6 times and amounted to 2.1 billion Swedish kronor ($ 241 million at the current exchange rate), sales in rubles increased by 198%. Business in Russia ranked second in terms of network growth after the United States.