Japanese fashion giant Uniqlo is seeking to expand its operations in India, following a substantial 60% sales upsurge.
What Happened: Uniqlo India’s CEO, Tomohiko Sei, announced the company’s intent to increase its partnerships with local mills and factories. This move comes in the wake of the brand’s first store inauguration in Mumbai, as per Bloomberg.
Uniqlo currently collaborates with over 20 Indian sewing factories and mills, adhering to the federal government’s directive to source at least 30% of its inventory from within the country. The clothing giant, which opened its first Indian store in New Delhi in 2019, now manages 11 stores nationwide. Further expansion is on the cards, with plans to open another Mumbai outlet later this month.
Recent filings with India’s corporate affairs ministry indicate that Uniqlo recorded a profit of ₹68.3 crore or roughly $8.2 million for the fiscal year ended March 31. The revenue from the same period stood at 6.24 billion rupees, marking a 60% growth from the previous year.
Why It Matters: Amid China’s slowing economy and rising geopolitical tensions with the West, India’s burgeoning population and increasing wealth are enticing to global corporations seeking growth avenues.
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“India is quite an important market, not just for Uniqlo but for all other companies," Sei remarked. The potential for growth in India’s retail sector remains significant, and Uniqlo’s moves are indicative of the company’s strategic efforts to capitalize on this potential.
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