UNIQLO Marched Into India In October And Opened Three Stores To Further Expand Its Overseas Market.

Since its entry to the India government at the end of 2017, Uniqlo UNIQLO has made decisive progress towards the second largest global market and the rapidly developing emerging markets.

Asia's largest clothing retailer, Fast Retailing Co. Ltd. (9983.T) fast marketing group, said it will start its first store in New Delhi, capital of October, with the first planned opening of 3 stores, all in New Delhi.

Like H&M, UNIQLO takes a wholly owned subsidiary's direct marketing mode in the India market. This also means that the products manufactured in India must account for 30% of the local brand goods, while rival Zara is in the local mode of operation through joint venture with partner Tata Group.

UNIQLO's strategy in the India market has obviously lagged behind its competitors.

In 2015, Gap Inc. (NYSE:GPS) cover Pu Group and H&M parent company Hennes Mauritz AB (HM-b.ST) Haines Morris has been stationed in India market. H&M, which only appeared in that country in September, has now infiltrated second tier cities and introduced e-commerce in 2018. In March of this year, H&M worked with local electricity suppliers Myntra and Jabong, and the number of stores has expanded to 41, with annual sales of SEK 1 billion 400 million.

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 2017, but it is still the first fast fashion brand to launch online shopping in the country.

UNIQLO's entry into India will further expand its overseas market business, which is expected to make up for the decline in 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.

In the three quarter of the first quarter, the crisis in the local market has further expanded. In the three quarter ended May 31st, XXX group achieved 555 billion 100 million yen in revenue, an increase of 7.3% over the same period last year, a slight increase in speed compared with 6.8% in the first half of the fiscal year, and continued to be driven by overseas UNIQLO and GU excellent businesses. Operating profit increased by 9.3% to 74 billion 700 million yen (US $692 million), less than the 79 billion 400 million yen expected by the market.

Japan's UNIQLO revenue recorded a 0.5% decline in the first half of the fiscal year, including a year-on-year decrease of 0.1% in online store sales. Due to weak demand, the brand needs to increase early and increase discounts for handling products in spring and summer. In addition, the annual sales promotion campaign, "UNIQLO's Thanksgiving Day", was postponed to June, making the same store sales in May, which was larger in May, declined by 1.8%, and the operating profit dropped by 7.5% to 28 billion 900 million yen under multiple factors.

Overseas UNIQLO showed a different picture. Revenue and operating profit rose by 15.3% and 14.9% to 240 billion 500 million yen and 36 billion 300 million yen respectively. In the first half of the fiscal year, the US market once again lost money in the first half of the fiscal year. The group said its local performance was not up to standard due to bad weather and poor sales in the spring and summer. In the first half of the fiscal year, Europe, which had a fairly flat profit, was also retrogressed by the effects of the weather and political turmoil. South Korea's income and earnings both fell, reversing the double growth in the first half of the fiscal year. Only the mainland, Southeast Asia and Oceania maintained strong momentum, and China's mainland profit growth was still over 20%. Author: Li Yan