Uniqlo India aims to reach INR 1,000-crore sales mark in the current fiscal year, driven by retail expansion and 30% annual growth.
Chief Operating Officer Kenji Inoue stated, “We have been achieving 30% growth, we feel that the potential of the market is huge.”
Uniqlo aims to triple annual sales to 10 trillion yen
India is a crucial market for Uniqlo’s parent company, Fast Retailing Co., which reported annual sales of 3 trillion yen (nearly $20 billion) and aims to triple it to 10 trillion yen. Inoue added, “Though India is still a small market on a global scale for Uniqlo, its potential is probably one of the biggest and it will change in the future.”
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For now, Uniqlo India operates 13 stores and is opening two new stores in Mumbai and West Delhi, taking the total count to 15 by November-end. Within three years of operations, Uniqlo became profitable in FY ’22, reporting a 31% revenue increase to INR 814.84 crore and a 25% profit increase to INR 85.17 crore.
Inoue said, “We have grown 30% last year (FY ’24) and we are targeting a similar growth ratio. We have not seen any significant drop or any change in people’s consumption behaviour.” On achieving the INR 1,000-crore sales mark, Inoue stated, “We aim for that. It would be dependent on factors such as the opening of new stores.”
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Uniqlo to surge local sourcing, aims 18%
Meanwhile, Uniqlo India is increasing local sourcing, aiming for 18% by 2025, up from 15.5% currently. Inoue noted, “We commit to expansion and modernisation of production activities in India and are on track to achieve local sourcing requirements.”
The company focuses on quality service and product mix in each region, particularly in South India. Uniqlo also generates 15% of sales from its online store, serving 17,000 pincodes. Inoue emphasised the importance of online sales through the mobile application and website.
Notably, Uniqlo is part of Fast Retailing Co., headquartered in Tokyo, Japan. The company has eight brands, including GU, Theory, and Helmut Lang.
