H&M arrives in Colombia to cheers and jeers

“The wait is over,” the Swedish chain announced this weekend on its Colombian social media channels, marking the arrival of the first H&M store in the country, which was highly anticipated in the country’s capital of Bogota. An estimated 3,000 people attended the inauguration in an atmosphere that was charged with palpable excitement and energy.

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.

H&M arrives in Colombia to cheers and jeers

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