Japan'S Market Decline In UNIQLO Wants To Apply For Entry Into India Market

After several years of Uniqlo

Entering India finally came to an end.

According to the website of India Ministry of industry policy and promotion, Asia is the largest in Asia this week.

The retailer Fast Retailing Co. Ltd. (9983.T) xungang group has submitted Uniqlo Uniqlo UNIQLO as an application for a single brand to enter the Asia's third largest economy.

Familiar with the Uniqlo development plan of UNIQLO India revealed that the brand will set up a wholly-owned subsidiary in India, which means that the products manufactured by India must be accounted for.

30% of local merchandise.

"The India market has great potential," the spokesman for Fast Retailing Co. Ltd. said. "The group has confirmed that it has taken the first step in introducing Uniqlo to India customers.

Now the group will await the reply from the government.

Meanwhile, in the past few months, Fast Retailing Co. Ltd. XXX group has been looking for shops in the locals, and famous shopping malls are eager to introduce Uniqlo UNIQLO after tasting the sweetness brought by Zara and H&M.

In August this year, India's Economic Times quoted sources saying that Uniqlo had to postpone the March until next year because of the lack of high quality retail space, and it was learned that CBRE Group Inc. Inc., world property agency, was also assisting the brand in finding a retail space of 10000 square feet in northern India as the first store.

According to the world clothing shoes and hats net, in 2015, Gap Inc. (NYSE:GPS) cover Pu Group and H&M parent company Hennes Mauritz AB (HMb.ST) have been stationed in India market.

H&M, which has only appeared in the country in September, has now begun to penetrate the second tier cities. In the coming half year, 8 new stores will be opened in Mumbai, Bangalore and Indore, Coimbatore and other second-tier cities, bringing the total number of local stores to 24, and e-commerce will also be introduced in 2018.

As for the Inditex SA (ITX.MC) Indo Textile Group Zara, which opened the store in India in 2010, e-commerce was launched in October this year, but it is still the first fast fashion brand to launch online shopping in the country.

As early as 2011, there was a rumor that the Fast Retailing Co. Ltd. group was seeking to enter India.

According to Euromonitor International international forecast, India's clothing market will grow to 37 thousand and 600 India rupees in 2021, or about 58 billion dollars.

Uniqlo UNIQLO's entry into India will further expand the overseas market business of Fast Retailing Co. Ltd. fast marketing group, which is hoping to make up for the decline of the Japanese domestic market.

Two years ago, the number of international stores of the brand has surpassed that of the local market. Management expects that the international market will also catch up with Japan's business for the first time this year.

Nevertheless, in fact, Uniqlo UNIQLO's international business performance is uneven, and the biggest market in China has been easing in recent years after strong growth in recent years.

The Fast Retailing Co. Ltd. XXX group, which is desperate for success, is losing money in the US market, and the group is still adjusting its store opening strategy.

Bloomberg columnist Shelly Banjo points out that if Fast Retailing Co. Ltd. group wants to succeed in India market, it needs to learn from the above mistakes, such as reducing dependence on physical stores, and using mobile priority strategy.

In terms of products, the group must correct the supply of styles, sizes and colors according to the preferences and sizes of India consumers and adopt the correct pricing strategy.

In this regard, Uniqlo UNIQLO should learn from Zara's position as a high-end brand, so as not to leave local customers with the impression of low-end brands.

Data show that, in the 2017 fiscal year ended August, Uniqlo and its international business revenue and operating profit respectively increased by 8.1% and 65.1%, respectively. However, Japan's business revenue grew by only 1.4%, and operating profit fell by 6.9% annually.

During the year, the operating profit of Greater China increased by 37% compared to the same period last year, and the US loss was also halved.

Fast Retailing Co. Ltd. XXX group's annual revenue increased by 4.2% to 18619 billion yen, a record high, and operating profit also increased by 38.6% under the Uniqlo international business.

Fast Retailing Co. Ltd. (9983.T) on Friday received 40730 yen, up 0.27% on a day, and 29% in the past three months.

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