Muji Shares Rose To India Market

India's current retail market of US $550 billion is expected to increase by two times in the next 6 years.

Retail brands at home and abroad will not only be active in big cities such as New Delhi, Mumbai and Bangalore, but will also extend to smaller cities such as Surat, Hyderabad, Chandigarh and Ludhiana.

Following last week's announcement of the expansion of the United States, Japan's clothing and daily brand Muji Muji launched its plan to enter the India market, becoming the first Japanese large retailer to enter the country.

Muji Muji's parent company RyohinKeikaku Co.Ltd. (7453.T) Co., Ltd. today disclosed that it has already established a joint venture with India retailer Reliance Brands Limited, bringing the concept of Muji Muji retail to India.

This news stimulated Ryohin Keikaku Co.Ltd. (7453.T) shares rose 6.75% on Wednesday, closing at 22300 yen, which rose 50% in 2015.

Now the international market has occupied 45% of the Ryohin Keikaku Co.Ltd.'s good plan revenue. The group president and managing director SatoruMatsuzaki Matsuzaki Kyo said that international expansion is the primary task of Muji Muji, and India with great potential is the next one.

Big market.

MF issued a report in mid April. It is estimated that in 2015, India's GDP growth rate will rise from 7.2% last year to 7.5%, and China will be reduced from 7.4% last year to 6.8%. This shows that as Asia's two largest population, economic growth will be reversed for the first time.

In addition, Moodie's new government has been seen as a good opportunity for the development of the retail industry to stimulate the new economy of the country's economy.

In the past two years, the country has continuously liberalized the ForeignDirectInvestment (FDI) policy. Since 2012, India has begun to approve foreign single brand retailers to establish wholly owned businesses in India, but they are required to purchase 30% of the goods locally.

In addition, in 2014, the government of India indicated that it planned to relax the entry threshold for foreign e-commerce business, which gave the retail industry great investment opportunities, and at the same time, the competition was also strengthened.

The world's leading apparel brands have all been scramble for India. The world's largest clothing retailer InditexSA (ITX.MC) first introduced Zara and made great success in 2010 through InditexTrent, a joint venture with India's giant Tata Group of Companies Tata retail group TrentLtd..

The famous brand of GapInc., NYSE:GPS, the second largest clothing retailer in the world (H&M), also opened its first store in India this month, and is located in SelectCitywalk, the most famous shopping mall in New Delhi. It is also the first place in the world, which is the main brand H&M of H&MHennes&MauritzAB (HMb.ST).

However, the GapInc. (NYSE:GPS) Cape group chose to establish a joint venture with ArvindLifestyleBrandsLimited., the largest textile group in India, and its brand retail companies ArvindLifestyleBrandsLimited..

Hennes&MauritzAB is a direct investment.

However, Uniqlo UNIQLO, which is often compared with Muji Muji, has always heard the stairway of India, but has yet to see the actual action, far behind its major competitors.

However, in June last year, Narendra Modi issued a brief statement after meeting with the chairman of the FastRetailingCo.Ltd. (9983.T) fast marketing group of Uniqlo UNIQLO parent company, saying that Uniqlo UNIQLO was considering purchasing clothing products from India, and setting up production lines in India could be seen as the footstep of Uniqlo UNIQLO's formal entry into India development.

Muji Muji and Uniqlo

In the past few years, China has been actively expanding its international market and has been expanding rapidly in the Chinese market. The two brands have 128 and 376 in China at the end of the year, making China the largest overseas market of these two brands. China's outstanding performance has also greatly promoted the sales and profit growth of RyohinKeikakuCo.Ltd. products and FastRetailingCo.Ltd. XXX group's international market.

Muji Muji has also announced the US expansion plan half a month ago, and will enter the shopping mall from street shops.

The brand currently has only 9 stores in the US market. In the current fiscal year, it plans to add a street shop (Fifth Avenue in New York) and a shopping mall store in California (PaloAlto StanfordShoppingCenter, Palo Otto).

Brand President AsakoShimazaki said the brand currently has 30% sales growth in the US market, much higher than the group's 2015 fiscal year group's overall growth rate of 18%.

The brand has also entered the international markets such as South Korea, Thailand, Europe, the Middle East and Australia, and the Middle East will usher in intensive expansion. This year, 8 new stores will be added to double the number of local stores.

This RelianceBrandsLimited, which is working with Muji Muji, is a member of RelianceIndustriesGroup, the largest private comprehensive enterprise in India. It has 18 international brands, including ErmenegildoZegna, Zegna, Diesel, Paul&Shark, BCBGMaxMara, BrooksBrothers, KennethCole, JuicyCouture and Superdry, which are authorized by India.