Fast Retailing Co.’s Uniqlo brand is on the lookout for additional manufacturing partners in India to accelerate its operations following a remarkable 60% surge in sales in the country.
Tomohiko Sei, CEO of Uniqlo India, shared this expansion plan during the inauguration of Uniqlo’s inaugural store in Mumbai. He stated, «Our production in India has already started exporting to other countries. We are looking to expand our partnerships with factories and mills. As a group, we aim to boost our exports from India. As the CEO for India, I am keen to foster more local production.»
The Japanese apparel giant presently collaborates with over 20 sewing factories and mills in India, ensuring compliance with the Indian government’s mandate to source a minimum of 30% of its inventory locally.
Uniqlo, which opened its debut store in New Delhi in 2019, has undergone rapid expansion with 11 stores across India. Plans are underway to launch a second store in Mumbai later this month. In the fiscal year concluding on March 31, the company reported a profit of 683 million rupees ($8.2 million) on revenue of 6.24 billion rupees, signifying an impressive 60% growth compared to the previous year.
India, with its burgeoning population, youthful consumers, and rising affluence, is an enticing market for global enterprises in the wake of China’s economic deceleration and geopolitical tensions. According to the Centre for Economics and Business Research, India could potentially evolve into a $10 trillion economy by 2035.
Founder and CEO of Uniqlo, Tadashi Yanai, has unveiled a new expansion phase, with an aspiration to reach ¥10 trillion ($67.2 billion) in sales, aiming to establish itself as a bona fide global player. The company’s interim objective is ¥5 trillion in sales within approximately five years.
As Fast Retailing, primarily reliant on sales from Japan and China, redirects its focus towards markets like North America, Europe, and other Asian regions, the company acknowledges India’s growing significance due to the increasing unpredictability in apparel demand brought about by geopolitical tensions between China and the United States.
Additionally, another Japanese firm, Shiseido Co., is targeting Indian consumers. It plans to launch its first makeup brand in India in nearly a decade and intends to open 14 stores in New Delhi and Mumbai this year, in partnership with Shoppers Stop Ltd.’s Global SS Beauty Brand.
