{"id":6151,"date":"2023-06-29T22:16:00","date_gmt":"2023-06-29T16:46:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=6151"},"modified":"2023-08-26T22:23:49","modified_gmt":"2023-08-26T16:53:49","slug":"uniqlo-plans-major-manufacturing-presence-in-india","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/uniqlo-plans-major-manufacturing-presence-in-india\/","title":{"rendered":"Uniqlo plans major manufacturing presence in India"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Dia Rekhi &amp; Faizan Haidar, Economic Times <\/em><br><em>New Delhi, June 29, 2023 <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fast Retailing, the parent company of Uniqlo, is looking to set up a significant manufacturing presence in India through about 20 \u2018production partners\u2019, multiple people aware of the development told ET.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the world&#8217;s most valuable clothing retailers, Uniqlo already has a cluster of production partners in India and is looking to expand this network through a significantly large investment, they said without sharing any estimated amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe investment amount will be significant because Uniqlo is serious about India and views it as an important market,\u201d one of the persons said. \u201cUnlike the existing facilities in India, which cater more towards exports, the production partners that Uniqlo will bring to India will be specifically meant for the domestic market.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the company&#8217;s production partners that ET spoke to confirmed that their current mandate is to produce only for exports.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo, which is Asia&#8217;s biggest clothing brand, had said India is one of the top priority markets for them where consumers are increasingly shifting from \u2018fast-fashion\u2019 to long-lasting essentials and functional wear.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company\u2019s ambitions for India are considerable with its CEO Tadashi Yanai indicating that he wants Uniqlo to become the \u201cbest-selling retailer in India\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Japanese brand opened its first door in September 2019, but stringent lockdown measures announced to contain the outbreak of the pandemic in March 2020 delayed the expansion plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The brand is now planning to enter Mumbai and Bangalore. It has already opened stores in Lucknow and Chandigarh after Delhi.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo does not own any factories. Instead, it outsources production of almost all its products to factories outside Japan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As per a report titled \u2018The Uniqlo case: fast retailing recipe for attaining market leadership position in casual clothing\u2019, this model allows Uniqlo to keep its breakeven point low and improve return on investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs we expand our global sales, we continue to grow our partner factory network in countries like Vietnam, Bangladesh, Indonesia, and India,\u201d the company has stated on its website.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As per its list of garment factories, as on March 1, 2023, Uniqlo has 227 factories in China, 54 in Vietnam, 33 in Bangladesh, 13 in Indonesia, and 16 factories in India and Japan among several other locations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the world\u2019s second most-populated country, India is an attractive market for apparel brands, especially with youngsters increasingly embracing western-style clothing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the past decade, global brands Zara and H&amp;M became market leaders in the fast fashion segment in India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cFor global brands, India should be one of the most logical sourcing hubs given its large vertically integrated manufacturing sector on the one hand and the large, growing domestic market driving demand on the other hand,\u201d Devangshu Dutta, founder of retail consulting firm Third Eyesight, told ET. \u201cHowever, its weight in the sourcing baskets has historically been low due to several reasons, in spite of China being visible for decades to the management teams of brands and retailers as a concentrated sourcing risk,\u201d he said.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo\u2019s existing production partners in the country include Shahi Exports, Brandix Lanka, Tangerine Design, Maral Overseas, Shingora Textiles, Silver Spark Apparel, SM Lulla Industries Worldwide and Penguin Apparels.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As per Fast Retailing&#8217;s first-half results, the company said its revenue was 1.4672 trillion yen, or around $10.2 billion, and that its operating profit had risen to 220.2 billion yen ($1.53 billion), bolstered by strong performances from operations in several regions, including India where it said it generated significant increases in both revenue and profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With regard to Uniqlo International, in particular, it said revenue stood at 755.2 billion yen ($5.25 billion), while operating profit was 122.6 billion yen ($852.93 million).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company said regions like India \u201creported significant revenue and profit gains as they enter a full-fledged growth phase\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(Published in <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/services\/retail\/uniqlo-plans-major-manufacturing-presence-in-india\/articleshow\/101354863.cms\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Economic Times<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the world&#8217;s most valuable clothing retailers, Uniqlo already has a cluster of production partners in India and is looking to expand this network through a significantly large investment, multiple people aware of the development told ET without sharing any estimated amount.<\/p>\n","protected":false},"author":1,"featured_media":6152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[25,27,33,36,3,43,44,46,47,48],"tags":[288,26,219,327,220,329,221,52,172,32,239,145,55,58,112,187,80,59,190,191,69,192,82,314,334,166,70,223,63,65,355,66,319,673],"class_list":["post-6151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apparel","category-branding","category-footwear","category-lifestyle-fashion","category-press-quotes","category-retail","category-soft-goods","category-strategy","category-supply-chain","category-textiles","tag-make-in-india","tag-apparel","tag-apparel-export-products","tag-apparel-exports","tag-apparel-industry","tag-apparel-manufacturing","tag-apparel-production","tag-branding","tag-clothing-manufacturers","tag-fashion","tag-fashion-lifestyle","tag-fashion-brands","tag-fast-fashion","tag-global","tag-global-business","tag-global-fashion-brands","tag-global-sourcing","tag-india","tag-india-entry-strategy","tag-indian-market","tag-indian-retail-sector","tag-international-fashion-brands","tag-lifestyle-fashion","tag-manufacturing","tag-markets-for-apparel-exports","tag-modern-retail","tag-organised-retail","tag-potential-apparel-export-products","tag-product-development","tag-retail","tag-supply-base","tag-supply-chain","tag-supply-consolidation","tag-uniqlo"],"yoast_head":"<!-- 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