India, the second most populous country in the world, is a hot market for apparel companies, especially as young people are increasingly embracing Western fashions. Unlike its fast-fashion competitors, who are known for their designs that go quickly from the catwalk to the showroom, Uniqlo is well known around the world for its practical basics, including t-shirts, jeans and woolen garments.
Both H&M and Zara offer fast fashion items made in-house and collaborate with designers on seasonal collections. They maintain a large stock of everyday staples at lower prices than most of their competitors, which are imported from countries like Bangladesh and India.
The Japanese retailer opened its first location in India in September 2019, but strict lockdown procedures were introduced in March 2020 to prevent the spread of the pandemic. Due to the delay, he was only able to open six additional stores. As part of its expansion strategy, Uniqlo said it would expand into new cities and add additional stores, but initially focus on northern India. The company will open its first location outside Delhi NCR in Lucknow the following week.
When opening its online store in July 2021, the company set a goal of deriving 15% of its overall revenue from e-commerce, a goal it has achieved.
The majority of companies in the apparel and leisure industries are facing supply chain challenges on a global scale, which has increased the cost of manufacturing and shipping products.