Uniqlo to Open Two Stores in Mumbai in 2023: A Closer Look at the Japanese Retailer’s Strategy

Uniqlo to Open Two Stores in Mumbai in 2023: A Closer Look at the Japanese Retailer’s Strategy

The store also expands its online presence, accounting for 15% of its overall sales nationwide.

As part of its upcoming retail growth in India, the Japanese retailer Uniqlo said on Wednesday that it will open two outlets in Mumbai.

The clothing shop, which started doing business in India in 2019, is now solely present in the north. It has eight locations in the Delhi-NCR area and one location each in Lucknow and Chandigarh. By the end of the calendar year 2023, Uniqlo will have 12 locations worldwide thanks to the two stores in Mumbai, the company said.

The second Mumbai location in Goregaon will debut on October 20 after the opening of the first location in Phoenix Marketcity in the Kurla district on October 6. According to industry sources, the corporation is also interested in entering the southern regions, particularly Bengaluru, Hyderabad, and Chennai.

Additionally, the store is expanding its online presence, which accounts for 15% of its total domestic sales. The brand aims to do this with reasonably priced, fashionable quick fashion items. According to the existing FDI regulation for single-brand retail, the firm is growing its local sourcing to reach its 30% domestic sourcing goal.

Following existing regulations, 100% FDI is allowed in single-brand retail commerce with the caveat that 30% of all purchases must be made locally to support MSMEs.

The Japanese store presently collaborates with 17 sewing facilities and six fabric mills in India; as its footprint grows, this number may rise.

Although the store hasn’t yet released its FY23 results, Uniqlo India’s sales in FY22 were 389 against the 236 recorded in FY21. This is an increase of about 65% yearly. The retailer’s app receives 40% of its traffic from Mumbai. The business has seen that 60% of the visitors to its website are from the financial centre.

In a significant move to expand its presence in India, Japanese retail giant Uniqlo has announced plans to open two new stores in Mumbai, the country’s financial capital, in 2023. This decision comes after Uniqlo’s successful launch in New Delhi and its subsequent expansions to other cities.

As a renowned global retailer known for its high-quality, casual apparel that marries functionality with style, Uniqlo wants to make a significant splash in the Indian market. This article delves into Uniqlo’s strategy for its Mumbai launch and examines what this move signifies for the retailer and the Indian retail market.

Uniqlo, a subsidiary of Fast Retailing Co., Ltd., began as a small store in Hiroshima, Japan 1984. Today, it is an international retail behemoth with more than 2,000 stores worldwide in Asia, Europe, and North America. The company’s retail strategy revolves around high-quality, functional, affordable clothing.

With its vast, diverse population and status as a fashion and financial hub, Mumbai represents a considerable opportunity for Uniqlo. The city’s burgeoning middle class, with increasing disposable income and a taste for global brands, makes it a ripe market for Uniqlo’s offerings.

Uniqlo’s two stores in Mumbai are strategically located in prominent shopping districts, making them highly accessible to a broad consumer base. These locations were selected for their high footfall and proximity to complementary retailers and dining establishments.

The Indian retail market, particularly for apparel, is fiercely competitive, with a mix of homegrown brands and international players. Uniqlo’s entry adds to the competition, challenging established giants like Zara and H&M and domestic players like Pantaloons and Max.

Uniqlo seeks to differentiate itself by focusing on high-quality, functional, and timeless clothing. Their LifeWear concept — everyday clothing designed to make people’s lives more comfortable — is a crucial part of their strategy. Uniqlo also frequently collaborates with renowned designers and artists, creating unique, limited-edition collections.

Uniqlo faces the challenge of adapting its offerings to cater to the diverse and distinct fashion tastes of Indian consumers. It is expected that Uniqlo will introduce India-specific designs similar to its approach in other markets.

With the Indian economy still rebounding from the effects of the COVID-19 pandemic, consumer spending remains a concern. Uniqlo will need to adapt to the economic sensitivities of its potential customers through strategic pricing and marketing strategies.

Given India’s complex regulations and infrastructure, establishing a streamlined supply chain will be essential for Uniqlo’s success. Partnering with local manufacturers and suppliers could be a viable strategy.

In line with global trends, Indian consumers are increasingly concerned about sustainability. Uniqlo has made efforts to produce more sustainable clothing and has launched recycling initiatives. Publicizing and expanding these efforts in India could offer a competitive advantage.

Uniqlo’s entry into Mumbai is a significant move for the company and the Indian retail sector. Uniqlo’s successful expansion could trigger a new wave of international retailers entering India, further boosting the country’s retail industry.

Uniqlo’s move to open two stores in Mumbai in 2023 is a bold and strategic step. With its focus on quality, functionality, and style, Uniqlo is positioning itself as a significant player in the Indian retail landscape. As it navigates the cultural, economic, and operational complexities of the Indian market, Uniqlo’s journey will be closely watched by industry experts and consumers alike.