MUMBAI: Japanese retailer Uniqlo is increasing sourcing from India for global markets and is expanding production in the country, said Kenji Inoue, COO and CFO at Uniqlo India. “For our India stores, we are sourcing about 15.5% of our requirements locally but the share is higher for exports and the strategy is to keep sourcing more,” Inoue told TOI in an interview here on Thursday. Uniqlo sources items like T-shirts and its heattech clothing from India for its global stores.
Growing income levels in India, which is enabling people to premiumise make the company a “good fit” for the market where it has grown at a CAGR of 59% in the last five years, Inoue said. “India is seen as a market with the highest (growth) potential. It’s important that we make a good branding presence here. If we exclude Covid-hit years, we have been in India for three years and there is a lot of headroom for growth,” Inoue said.
During its first leg of India expansion, Uniqlo has largely been focused on the Northern part of the country, with Delhi-NCR being home to its largest number of stores. The firm, which counts millennials in their early 30s as its key consumer cohort, is now also building its footprint in metros like Mumbai. “We are not rushing to get into new cities. The focus is more on product mix and quality,” said Inoue.
Uniqlo India’s revenue from operations increased by 31% year-on-year to Rs 814.8 crore in FY24. Profits also widened to Rs 85 crore during the year, data sourced from market intelligence platform Tofler showed. The company competes with players like Zara and H&M in India, where several young and trendy D2C brands are also fighting for a share of the consumer wallet.