UNIQLO Will Enter The India Market In The Form Of 100% Sole Proprietorship.

In the past two years, the growth of China's market has slowed down in the face of the most potential emerging markets.

Brands have been making new growth points globally.

Now it appears that

We are more or less ready to achieve a new round of growth.

According to the world clothing shoes and hats net, Japanese brands

It will enter the India market in the form of 100% sole proprietorship.

At present, the top brands of UNIQLO brand and its parent company have been running in India, making preparations for UNIQLO to open its first store in New Delhi or Mumbai in 2018.

Earlier, there was a rumor that the Japanese brand wanted to cooperate with Calvin Klein and Arvind Lifestyle Brands, a local spinning and weaving group that introduced India Gap and another fast fashion brand, to enter India as a joint venture.

UNIQLO is the brand of several large fast fashion brands that finally entered the India market.

Prior to it, Zara entered the market as a joint venture in 2010, and opened 17 stores as of the end of fiscal year 2015.

The cooperation between Gap and Arvind Lifestyle Brands was officially launched in March 2015. There is no official data showing the number of stores in India market. According to the world clothing and shoe net, the latter's expansion plan is "40 stores in the first few years".

H&M came late and did not open the first store until October 2015.

However, unlike previous competitors, it adopted a sole proprietorship model and gained greater freedom of business than its rivals.

The most obvious point is that it does not have the pressure of partners to make profits, so it can maintain prices as low as other markets around the world.

This is ten important for the India market, because the product dimensions that India customers value most is price compared to the relatively mature market that cares about fashion and product updates.

Under such circumstances, the arrival of H&M with price advantage is undoubtedly a strong threat to all competitors in the market.

It is no wonder that Zara, who was originally in India, made a decision to reduce the price by 15% at a time.

The arrival of UNIQLO, which has the same price advantage, will undoubtedly increase the intensity of competition in the whole market.

It is reported that Zara and Gap are already planning another round of price cuts against the India market.

Among them, the price adjustment plan of Gap is more clear.

In a statement, CEO J Suresh, partner of Arvind Lifestyle Brands in India, said Arvind Lifestyle Brands will produce Gap products for sale in India market for Gap, which will win the price cut for the company.

Frequent price wars among fast fashion brands are not common in other markets around the world.

This situation in India is related to the consumption preference of the local people.

But what is more important is the brand's determination to eat the market.

There is no need to say more about the potential of the India market.

In 2017, the World Bank forecast India's economic growth rate of 8%, compared with China's growth rate is expected to be 6.9%, is currently the representative emerging market BRIC, the only country that still maintains high growth rate.

From the perspective of brand planning, the importance of India market is more obvious.

First look at the H&M that just released the 2016 fiscal year report.

The India market has become the highest sales growth rate in the entire H&M group in this fiscal year, with a growth rate of 687% according to the Swedish kronor and a 718% higher in local currency.

The growth rate of the Chinese market in the fiscal year has dropped to single digits.

In addition, the growth rate of H&M sales in the last two months has been lower than expected, making the brand eager to find a market with opportunities to break through.

Zara obviously showed signs of energy pfer.

In the past ten years, most of its energy in overseas markets has been placed in the Chinese market.

According to the Inditex2015 financial year report of Zara parent company, only one brand of Zara has reached 179 stores in the Chinese market, which is only the 321 largest overseas market after its headquarters.

However, Zara has publicly stated that it will slow down the pace of opening stores in China. Recently, the news of its closure of a display store in Chengdu further confirmed that the brand has entered a period of intensive cultivation in China. It is more concerned about how to achieve the highest return on investment in this macro economic slowdown and weak consumer market than the expansion of growth.

At this time, the India market, which is similar to the former Chinese market, has the opportunity to become the next "wasteland" of the next Zara.

UNIQLO's "global first" strategy is of course indispensable to India.

In fact, when the European and American markets continued to fail, Japan and China, the two most successful markets, began to encounter bottlenecks. UNIQLO is also looking for opportunities from other markets.

It is as if the rumors of entering India soon came out. According to the world clothing and shoe net, UNIQLO will enter the Zara stronghold of Spain in the autumn of 2017, and officially open its eighteenth overseas markets.

As for Gap, its poor performance in North America will naturally stimulate its desire to enter emerging markets.

However, no matter from the price or style, or the speed of renewal, Gap is somewhat different from its competitors.

In this way, it may be a good try to create a production line in India with the help of our partners. It can bring some new opportunities.

The brands are marking the India market from their own considerations.

Despite the fierce competition, we believe that a market that can grow together in competition can bring benefits to all brands.

Especially when the number of stores in India is still limited, there are still lots of virgin land waiting to be developed in the whole market. It is not known that brands can reestablish a new order here.

However, it is not difficult to win the India market.

The gap between the rich and the poor in the city and the dominant position of traditional sari in the clothing industry set obstacles for the further expansion and penetration of the brand.

More interesting reports, please pay attention to the world clothing shoes and hats net.