{"id":6555,"date":"2024-08-10T18:34:42","date_gmt":"2024-08-10T13:04:42","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=6555"},"modified":"2024-08-11T19:09:27","modified_gmt":"2024-08-11T13:39:27","slug":"uniqlo-india-sales-growth-rate-slows","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/uniqlo-india-sales-growth-rate-slows\/","title":{"rendered":"Uniqlo India profit jumps 25%, sales growth declines"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Faizan Haidar, Economic Times <br>10 Aug 2024, New Delhi <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Japanese apparel major Uniqlo&#8217;s sales growth in India slipped by more than half to a still-strong 32% last fiscal year while its net profit expanded by 25%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Indian unit of Asia&#8217;s biggest clothing brand posted a net profit of \u20b985.1 crore for the year ended March 2024 with net revenues of \u20b9824 crore, according to its latest filing with the Registrar of Companies (RoC). Uniqlo India had posted a profit of \u20b968.1 crore with sales of \u20b9625 crore in the previous year. Its on-year revenue growth was 69% in FY23 and 64% in FY22.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo opened its first door in the country in September 2019, but lockdowns and other constraints during the Covid-19 pandemic delayed its store expansion plans. At present, it has about 13 outlets in the country. Overall retail sales growth rate across segments such as apparel, footwear and quick service restaurants (QSR) fell year-on-year every month in FY24, reflecting comparatively weaker consumer sentiment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Last fiscal&#8217;s comparatively slower 4-7% growth rate sustained this year as well, with May and June seeing a 3% and 5% rise each, Retailers Association of India (RAI) recently said after a survey of top 100 retailers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The market was sluggish for the industry as a whole last year, and that will reflect in practice every brand P&amp;L, whether Indian or international,&#8221; said Devangshu Dutta, chief executive of retail sector consultancy Third Eyesight. &#8220;However, any brand that is committed to the Indian market as a strategic market for its future growth will take the ups and downs in its stride,&#8221; he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Uniqlo&#8217;s expansion plans now include store sizes that would be smaller both in the cities it is already present in and in newer cities, which should help it tap into the demand at operating costs that are appropriate to each location,&#8221; Dutta said. Inditex Trent, Spanish fast-fashion major Zara&#8217;s joint venture with Tata that runs 23 stores in the country, saw its revenue rise 8% to \u20b92,775 crore last fiscal, significantly down from 40% growth a year earlier, according to Trent&#8217;s annual report. Its net profit fell 8% on year to \u20b9244 crore.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the past decade, global brands Zara and H&amp;M have become market leaders in the fast fashion segment in India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo has said India is one of the most priority markets where consumers are increasingly shifting from &#8216;fast fashion&#8217; to long-lasting essentials and functional wear. As the world&#8217;s 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\">Uniqlo is globally popular for functional basics like T-shirts, jeans and woollen wear, unlike fast-fashion rivals which are associated with designs that move quickly from the catwalk to the showroom.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(Published in <a href=\"https:\/\/m.economictimes.com\/industry\/cons-products\/garments-\/-textiles\/uniqlo-india-profit-jumps-25-sales-growth-declines\/amp_articleshow\/112411712.cms\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Economic Times<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Uniqlo&#8217;s sales growth in India slowed to 32% last fiscal year, but its net profit increased by 25%. The company reported a net profit of \u20b985.1 crore with revenues totaling \u20b9824 crore for FY24. Despite a tough market, Uniqlo aims to expand by introducing smaller stores in both existing and new cities in India.<\/p>\n","protected":false},"author":1,"featured_media":6556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[25,708,27,212,33,60,36,37,3,131,270,43,44,46,47,48],"tags":[26,220,28,32,239,145,187,59,190,191,69,164,147,241,192,82,118,120,785,65,321,384,398,66,673],"class_list":["post-6555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apparel","category-beauty-personal-care","category-branding","category-consumer","category-footwear","category-india","category-lifestyle-fashion","category-marketing","category-press-quotes","category-product-development-and-design","category-real-estate-2","category-retail","category-soft-goods","category-strategy","category-supply-chain","category-textiles","tag-apparel","tag-apparel-industry","tag-clothing","tag-fashion","tag-fashion-lifestyle","tag-fashion-brands","tag-global-fashion-brands","tag-india","tag-india-entry-strategy","tag-indian-market","tag-indian-retail-sector","tag-international-brand","tag-international-brands","tag-international-fashion-brand","tag-international-fashion-brands","tag-lifestyle-fashion","tag-market-potential","tag-marketing","tag-profitability","tag-retail","tag-store-localization","tag-store-operations","tag-store-productivity","tag-supply-chain","tag-uniqlo"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Uniqlo India profit jumps 25%, sales growth declines - Third Eyesight<\/title>\n<meta name=\"description\" content=\"Uniqlo&#039;s sales growth in India slowed to 32% last fiscal year, but its net profit increased by 25%. 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