India is considered another new market for Uniqlo; this launch serves as the start of a long-term partnership. The Uniqlo Company will bring the highest quality apparel to Indian buyers in India. The founder and CEO of Uniqlo, Tadashi Yanai, said he had long intended to expand into the Indian market. He assumed that India could be “number one and the most exciting market in the world”.
This region has several advantages in this market segment, such as the availability of cotton, skilled labor, reliable infrastructure, a large domestic market, and good export ports. India’s textile and apparel industry has strengths throughout the entire value chain. It is widely diversified with various segments, from traditional handloom products, handicrafts, wool, and silk to the organized textile industry. The organized textile industry is characterized by capital-intensive technologies for the mass production of textiles, including spinning, weaving, processing, and garment manufacturing.
At present, India is considered an important market for retailers. According to Euromonitor International predictions, India’s apparel market could grow to $56 billion by 2021. As India struggles with slow economic growth, the entry of foreign companies and investors has become a necessity for their economy. The new Uniqlo store will mark the brand’s entry into the South Asia region. Furthermore, the government of Prime Minister Narendra Modi facilitated the process of investments.
In addition, some time ago, Takashi Yanai expressed his desire to surpass his Spanish rival Inditex, who registered the Zara brand and became the world’s largest clothing supplier. Moreover, the company said it would provide new jobs for the people of India. The retail giant aims to establish itself in the country’s vast market of more than 1.2 billion people. Active development in international markets has led to the fact that the company’s global sales, which is the largest retailer in Asia, exceed sales in the domestic market for two quarters in a row.
The company established a subsidiary in India and focused on developing its presence in the region’s capital, Delhi. The first Uniqlo store opened in the South Asian area – in the capital of India, New Delhi. The brand has been considering this market for itself since 2011. For instance, a production office was opened in 2016 in Bengaluru. It has become a crucial action “as 100 percent foreign direct investment companies in India, such as Uniqlo, have a mandatory local sourcing requirement of 30 percent”. Thus, Ambience Mall in New Delhi was chosen as the location where the Uniqlo store with an area of 3250 square meters was opened on October 4, 2019 (Japan’s Uniqlo takes the plunge in uncertain India retail market, 2019). Spread over three floors, this Uniqlo outlet has become one of the company’s largest retailers.
According to the company, the location of the store in this shopping center has many advantages. The mall is located in the same area as the DLF Emporio shopping center, which presents premium brands, and the DLF Promenade complex offers brands of the “middle +” level. This allows the company to expect constant and high-quality traffic, and the proximity to India’s Gurgaon – will attract middle-class buyers to the store. According to Thacker (2021), after opening the store, “400 people had lined up to shop”. Additionally, Uniqlo made £237,000 in its first two days and in November opened its second store in Delhi. The first Uniqlo store offers a complete line of LifeWear clothing for women, men, children, and babies. The store’s opening drew huge crowds in the mall area in the capital, Delhi.