Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels

Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels

SUMMARY

The brand is also scaling up its offline presence with two new stores in Mumbai

With the expansion of our brick-and-mortar stores, we still aim to maintain the online store portion at the same level: Uniqlo CEO

In addition, the company is increasing its local sourcing and said that it was on track to achieve 30% domestic sourcing

Japanese clothing brand Uniqlo, currently deriving around 15% of its total sales from online channels in India, is also expanding its physical retail footprint.

“We set and achieved our target of 15% when launched our e-commerce platform in 2021. With the expansion of our brick-and-mortar stores, we still aim to maintain the online store portion at the same level. This, of course, differs from month-on-month basis seasonality and store opening,” Uniqlo CEO Tomohiko Sei said.

Currently, Uniqlo has its offline presence in North India, including 8 stores in Delhi NCR. It plans to launch two stores in Mumbai at Phoenix Marketcity and Oberoi Mall.

The company is also planning to establish a presence in the southern markets, particularly in cities like Bengaluru, Hyderabad, and Chennai, where it identifies strong demand for its products through its ecommerce platform.

In addition, the company is increasing its local sourcing and said that it was on track to achieve 30% domestic sourcing, as per FDI policy. Under the current rules, 100% FDI is permitted in the single-brand retail trade with a rider of 30% mandatory local sourcing to promote micro, small and medium enterprises (MSMEs).

The global expansion comes at a time when Fast Retailing, the owner of Uniqlo, said last month that its nine-month profit soared 22% as its business in China continued to recover from a pandemic slowdown, and it raised its full-year forecast to a new record.

Its operating profit rose to $2.38 Bn in the nine months ended on May 31, from $1.96 Bn in the year-earlier period. The company raised its full-year profit forecast to $2.7 Bn from $2.6 Bn.

While Uniqlo is scaling up its presence in India, Shein is coming back to India on the back of a Reliance-Retail partnership, Urbanic is also bolstering its D2C presence with a new brand identity, and homegrown D2C fashion brands are also tapping on growing appetite and demand for fashion products amongst indian masses.

Amid rising competition, fashion has emerged as the largest category in online retail in India due to a maturing user base, accounting for 37% of the overall online shopping in FY23, according to RedSeer, a consulting firm.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels-Inc42 Media
Apparel Brand Uniqlo India Sees 15% Of Total Sales Coming From Online Channels-Inc42 Media
You’re in Good company