22 November 2024, Mumbai
A subsidiary of Japan’s Fast Retailing Co, Uniqlo India aims to hit the Rs 1,000-crore sales milestone this fiscal year, maintaining its annual growth trajectory of 30 per cent. Kenji Inoue, Chief Operating Officer, says, the company aims to embark on a retail expansion besides increasing local sourcing.
India is a key market for Fast Retailing, which recently reported annual global sales of 3 trillion yen (approximately $20 billion). The company has set its sights on tripling sales to 10 trillion yen in the future, with India playing a crucial role in that strategy. It has been an annual growth of 30 per cent and believes, the Indian market has tremendous potential.
Since opening its first store in India in October 2019, Uniqlo has expanded its footprint to 13 locations. By Nov’24-end, this will increase to 15 stores, with new outlets launching in Mumbai’s Phoenix Palladium and West Delhi. Uniqlo India reported a 31 per cent rise in revenue to Rs 814.84 crore and a 25 per cent increase in profit to Rs 85.17 crore for the financial year ending March 31, 2024. The company has achieved profitability within three years of starting operations in India, reaching that milestone in FY’22.
When asked about reaching the Rs 1,000-crore target, Inoue confirmed the company’s ambitions, noting that the success of new stores like the one at Phoenix Palladium will be instrumental.
Uniqlo India also aims to enhance its local production by sourcing 18 per cent of its products locally by 2025, as against the current 15.5 per cent. Inoue emphasised the company’s dedication to ‘producing global standard goods in India’ and meeting local sourcing requirements as part of their expansion strategy.
With its growth not limited to the Northern and Western regions, the company is focusing on South India as it aims to ensure that the quality of service and product mix in each store aligns with customer expectations, Inoue explains.
In addition to its physical stores, Uniqlo is expanding its digital presence. Currently, 15 per cent of its sales come from the official online platform, Uniqlo.com, which reaches 17,000 pin codes across the country. The company intends to continue strengthening its online sales through its website and mobile app.
Uniqlo is the largest brand in the Fast Retailing Group, which is based in Tokyo and includes other brands like GU, Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand, and Helmut Lang. With India’s growing consumer base and its emphasis on quality and sustainability, Uniqlo is positioning itself as a key player in the Indian fashion market, setting ambitious goals for the future.
