Fast Retailing plans to establish major Uniqlo manufacturing presence in India

Japanese apparel brand Uniqlo’s parent company Fast Retailing plans to increase its manufacturing capacity in India, viewing the country as an important market. The business could join up with around 20 production partners to achieve this. 

“The investment amount will be significant because Uniqlo is serious about India and views it as an important market,” an anonymous source close to the matter told ET Bureau. “Unlike the existing facilities in India, which cater more towards exports, the production partners that Uniqlo will bring to India will be specifically meant for the domestic market.”
 
Uniqlo currently works with a number of production partners to produce its clothing in India. The business’ current strategy is to manufacture clothing for exports, but the aim will be to begin producing clothing for domestic consumption as well, in line with evolving Indian consumer tastes. Uniqlo does not own any of its factories and works with partners to outsource its production. 

The brand has ambitious plans for its India operations. Uniqlo’s CEO Tadashi Yanai has previously stated that he aims for the brand to become the “best selling” retailer in India, the Economic Times reported. 
 
Uniqlo first launched in the Indian market in September 2019. The onset of Covid-19 slowed the brand’s initial expansion, but Uniqlo now has stores in Delhi, Chandigarh, and Lucknow and plans to open in Mumbai and Bengaluru.