UNIQLO aims to cross Rs 3,000 cr sales mark in next 2-3 yrs, to expand retail network

New Delhi, Aug 25 (PTI) Retail firm UNIQLO India is looking for nearly a three-fold increase in sales to Rs 3,000 crore in the next 2-3 years, led by expansion of its sales network, rising brand awareness, and a strong uplift in its online sales.

The company, part of Fast Retailing Company, a Japanese retail holding company, is quite upbeat here after having a 44 per cent growth in FY25, with its revenue crossing Rs 1,100 crore, said UNIQLO India Chief Financial Officer & Chief Operating Officer Kenji Inoue.

"So with this, we are more confident to expand our business in India, and we feel that there is a very strong customer demand for our lifewears, as it is getting more accepted by our customers," Inoue told PTI.

UNIQLO, which is expanding in the Indian region-wise in phases, is now entering Bengaluru and Pune by opening new stores. Besides, UNIQLO has a strong presence through online sales, which contributes around 15 per cent of its topline in India.

According to Inoue, India is not just a 'high-growth market' but will also play an important role in UNIQLO's global ambition of achieving 10 trillion yen in sales.

UNIQLO, which entered India in 2019, has grown at a CAGR (compound annual growth rate) of nearly 60 per cent, turning profitable within three years of operations, while maintaining double-digit margins, he said.

"With our current performance & growth trajectory, we are now targeting Rs 3,000 crore in the next 2-3 years," he said.

UNIQLO currently operates 16 stores in India, and with the addition of new stores in Pune and Bengaluru, this will go up to 18 by the end of September 2025.

When asked about the growth driver for UNIQLO India, Inoue said it will be driven by the expansion of stores, growing brand awareness and its e-commerce growth, which is almost equivalent to the company's growth.

On expansion, Inoue said it will "go steady and get into each market very carefully and understand customers' demand".

"For the first four years, we focused on the north region, which is like Delhi and Punjab. And then the last two years, we got into the Mumbai market. And now we are so excited to get into the South India market this month," he said.

According to Inoue, it will not rush to go into the next market, but "wants to expand within those core markets that we are getting into".

Besides, UNIQLO has plans to increase sourcing from India and to double it to 30 per cent from the present 15 per cent for its local operations here.

India has mandatory norms for 30 per cent local sourcing for the single-brand retail sector; however, they have exemptions if they source from India for their global operations as part of their local commitment.

"Basically, we have the majority of the product, which is made in India. Those are exported. So for the FDI policy, we are compliant already," he said.

However, he also added that as UNIQLO's business expands in India, it will be more important from a supply chain perspective that we expand production in India, which will contribute a lot to our UNIQLO India business.

UNIQLO is a brand of Fast Retailing Co., headquartered in Tokyo, Japan. It is the largest of eight brands in the Fast Retailing Group, the others being GU, Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand and Helmut Lang. PTI KRH KRH SHW