Hennes and Mauritz (H&M) is set to expand to Ethiopia by building new factory this autumn. According to H&M spokeswoman, Camilla Emilsso-Falk told AFP that test orders have been placed with Ethiopia suppliers and new factories will be built.
The economy of Ethiopia has been growing since 2007 with double digit leaps and bounds and annual growth of 7 to 8 percent through 2016 according to The Economist. Also production costs in Ethiopia are cheaper than in Far East and much lower than in China. Thomas Ballweg, a procurement and technical consultant at German Fashion also emphasizes Ethiopia closeness to the sea, her over 80 million population and nearness to Europe through the Suez Canal as an added benefit.
H&M started in 1947 as Hennes women’s clothing store which started in Västerås, Sweden. Today the H&M Group offers fashion for everyone under the brands of H&M, COS, Monki, Weekday, Cheap Monday as well as fashion for the home at H&M home. Their stores spread across all continents in the world.