H&M takes on Ebay and Amazon in the battle for US E-shoppers

STOCKHOLM: Budget fashion retailer Hennes& Mauritz launched an e-commerce operation in the United States on Thursday, taking on rivals in the world's biggest online market.

The launch is highly anticipated and follows successive delays. But retail experts say H&M may struggle to make the kind of profits from US e-commerce enjoyed by pricier rivals.

H&M has prospered in the United States without a big online presence and is mindful of the likely impact on profit margins of the high shipping and return costs associated with such a vast country. However, with more and more shoppers buying clothes from home, the Swedish firm is speeding up its online roll-out to capture a slice of the growing market.

H&M has grown fast in recent years in the US, it's second-biggest market, but has twice pulled back from announced dates for the online launch, blaming unexpected complexities insetting up an operation well integrated with its stores.

Meanwhile, its main rival Inditex and others such as online e-store ASOS have expanded in the market, while Amazon is pushing further into apparel after EBay prospered with its fashion offering."You don't want to lose out on being the port of call for younger shoppers. So H&M should really get in there," Planet Retail consultant Isabel Cavill said.

Apparel has become one of the fastest-growing online retail segments. H&M has e-stores in eight European countries and says they are now as profitable as its bricks-and-morter shops.