06 March 2026, Mumbai
Intensifying its expansion strategy in India, Japanese apparel giant Uniqlo has set new sourcing ambitions for FY26. The company aims to increase local merchandise sourcing from the current 15 per cent–20 per cent to a long-term target of 30 per cent. This initiative is designed to build the necessary scale for specialized product lines, such as its signature AIRism and linen collections, which are gaining significant traction in India’s warmer southern markets. By localizing production, Uniqlo expects to achieve greater operational efficiency while insulating itself against global supply chain volatility and tariff-related headwinds.
Prioritizing the South India market
Following a robust performance in FY25, where revenue increased to Rs 1,100 crore, the brand is now prioritizing a calibrated expansion into southern India. It targets a 44 per cent Y-o-Y revenue growth for the FY25-26. Kenji Inoue, Chief Operating Officer and Chief Financial Officer, Uniqlo India, confirms, the company is transitioning from a North-India-centric model to a broader national presence. This strategic shift includes the recent opening of its second store in Bengaluru, bringing the total national count to 18 outlets, with a focus on capturing demand within major metropolitan hubs.
Digital integration and market penetration
Uniqlo’s growth trajectory is further supported by an evolving e-commerce strategy. With online sales expanding at approximately 40 per cent annually, the brand is successfully capturing demand from regions where physical store presence is currently limited. Management has ruled out third-party marketplace listings, opting instead to strengthen its proprietary digital platform to maintain brand equity and customer intimacy. As India’s apparel market is projected to reach $150 billion by 2030, Uniqlo’s focus on functional ‘LifeWear’ and data-backed inventory management positions it to capture a larger share of the country's growing affluent demographic.
A subsidiary of Fast Retailing Co, Uniqlo India specializes in high-quality, functional ‘LifeWear’ apparel. The brand operates in premium fashion segments, emphasizing minimalist design and material innovation. Following a profitable entry in 2019, the company is now pursuing aggressive store expansion and localization to capture India’s rapidly growing retail market.
Get in Touch! 
