H&M arrives in Colombia to cheers and jeers

The arrival of H&M in Colombia marks a new era. Not even the arrival
of Inditex generated so much commotion. But with H&M prices up to
40 percent below average national price points for apparel, critics of
the fashion chain have not held back. Mauricio Rojas, an expert in the
Colombian fashion markets, spoke exclusively with FashionNetwork.com,
expressing his wholehearted support of the Swedish chain.“The
arrival of H&M in the country has left many industries and stores
outraged, but I think it’s a good thing because the Colombian market is
already so oversaturated and overinflated,” Rojas said. “The companies
and stores are afraid of H&M’s prices, because we’ve spent almost a
decade here in Colombia taking advantage of the consumer. How is it
possible that a women’s blouse cannot sell for less than $90,000 pesos
($30 USD) with fabrics that aren’t even worth $5,000 pesos ($1.69 USD) a
meter?” he affirmed, showing studies that reveal that the biggest
brands in the country earn margins of up to four times, on par with
luxury brands, which ultimately creates inconsistency for the consumer. While
it is true that in Colombia, tariffs, taxes and leases are expensive,
often such costs are completely passed onto the consumer. H&M’s
arrival in the country, with quality clothing at prices that appear
“fair,” in addition to its exclusive collections and eco-friendly
pieces, will mark a new chapter in Colombian retail and generate many
changes. “The traditional fashion companies will adjust or
they’re going to see their sales negatively impacted, given that
H&M’s momentum in developing countries is far greater than that of
Inditex, thanks to its broad offer, aggressive publicity, and low
prices.” A second H&M store is scheduled to open in Colombia before
the end of the month and a third in the near future, with the
possibility of ending the year with between three and five stores. For
now, experts and customers are celebrating the Swedish chain’s arrival
with high expectations, and see it as a symbol of progress.