Uniqlo will accelerate its expansion in India

Uniqlo India plans to accelerate its expansion in India, aiming to open more stores in the coming years. The company has already established a strong presence, opening nearly 15 stores in its first five years of operation, according to a company executive.

“We can’t give specific numbers because we need to find the best location with our landlord partners and for most projects this is still under discussion. Over the past five years, we have opened 15 stores. Looking to the future, we are more confident that we will expand at the same pace or even faster. Our pace will be faster. We are committed to accelerating (expansion),” Kenji Inoue, CFO and COO, Uniqlo India, during a virtual interview with Mint on Thursday.

Uniqlo is part of the Japanese company Fast Retailing Co. Ltd. The company also operates other brands such as Theory and Comptoir des Cotonniers, with a total of 3,595 stores worldwide. Uniqlo is the group’s flagship retail brand. It is among the leading clothing retailers in the world, competing with companies such as H&M and Zara.

Uniqlo entered India in 2019 with its first store in New Delhi and now has eight stores in Delhi-NCR. The company currently has 13 stores. He arrived in Mumbai last year; There are plans to add another story later this week in Mumbai.

Demand for comfortable winter clothing such as jackets as well as linen shirts has helped boost the retailer’s revenue.

For FY2024, Uniqlo India reported revenue growth of 32%. ₹823.4 crore more than ₹In the previous financial year, the amount stood at Rs 624.6 crore, according to business intelligence platform Tofler. Profit for the period amounted to ₹85.3 crore, up 24% ₹68.3 crores a year ago.

Temporary store closures in 2020 and 2021 have impacted sales at the retailer known for its casual clothing.

“We have achieved over 50% year-on-year growth over the past five years. 2023-2024 was a strong year, with growth of over 30% year-on-year. Looking to the future, we are becoming more confident, especially after opening in Mumbai, which is different from the North Indian market,” he said.

Indian clothing retailers faced a difficult year as inflation-worried consumers cut back on clothing and footwear purchases. As a result, many retailers have resorted to discounting excess inventory. Inouye said the retailer’s business remains recession-proof. “Essentially, we see no impact on our brand,” he added.

The Indian apparel and footwear market is expected to reach $160 billion by 2030, up from $75 billion in 2022, according to a Deloitte analysis.

While Fast Retailing operates other fashion brands around the world, Inoue said the group has no immediate plans to bring them to the Indian market. “Our goal is to expand the presence of the Uniqlo brand in the market,” he added.

Uniqlo sells a wide range of clothing for both men and women, including ribbed knit pants, cashmere, HEATTECH, bra tops and lounge pants.

Read also: Marks & Spencer cuts home decor business in India

In fiscal year 2024, Fast Retailing’s revenue exceeded ¥3 trillion and operating profit exceeded ¥500 billion for the first time. The retailer has singled out India among the markets where it is set to report strong revenue and profit growth as it continues to expand its global operations in the next financial year.