UNIQLO Making headway with made for all

Uniqlo, Asia's largest fashion retailer has managed to hit the sweet spot in the Indian market to not just become popular but also profitable in just three years. Images Group's group managing editor Rasul Bailay uncovers its success secrets, strategies and plans for India.

Samrat Puri, a New Delhi-based professional chef, said he usually shops at a Uniqlo store once or twice every month, splurging on an average of Rs 8,000-Rs 15,000, depending on his visits each month.

"I prefer my jackets, night tees as well as my shirts coming in from Uniqlo," said the 25-year-old chef. "The place is pocket-friendly and the variety is great."

Similarly, education counsellor Mahima Baruta, said she often shops at Uniqlo stores in New Delhi. One evening, just before the New Year, she was at the Uniqlo store at DLF Avenue Mall in Saket, New Delhi purchasing a fleece jacket for herself.

Thanks to consumers like Puri and Baruta, Uniqlo is off to a good start in India, a market that the Japanese brand considers its top future market for potential growth.

Pricing strategy

Spain's Zara and Sweden-based Hennes & Mauritz (H&M) had slashed their prices by up to 10% when they entered India before Uniqlo. But the Japanese brand adopted an entirely opposite entry strategy for India: It had rather increased its prices by up to 25%.

The strategy seems to have paid off. Thanks to the growing popularity of the brand in India, coupled with its pricing strategy, Uniqlo has turned profitable in India in less than three years of rolling out its first store in New Delhi. The largest Japanese fashion brand saw profitability in the third year despite its India entry being marred by Covid19-induced lockdowns and disruption as the pandemic struck India barely months after Uniqlo opened its first store in the capital in October, 2019.

Uniqlo India reported a profit of Rs 21.4 crore for the fiscal year ending March 2022 compared to a loss of Rs 36.1 crore in the previous financial year. The Japanese retailer's India sales jumped 63% year on year to Rs 391.7 crore in 2021-2022.