Uniqlo Strengthens India Presence with Retail and Sourcing Push
- Uniqlo plans to increase India-based sourcing from 15%-16% to 30% in the coming years.
- The brand is expanding its store presence in India, including new cities like Bengaluru and Pune, alongside a strong online strategy.
- Uniqlo aims to triple its India revenue to Rs 3,000 crore in 2–3 years, making India a key market for global growth.
Japanese retail giant Uniqlo is aiming to expand its presence in India while doubling its local sourcing from the country, underscoring the market's growing importance in the brand's global growth strategy. The company plans to raise its local sourcing from the current 15%-16% to 30% in the coming years, according to Kenji Inoue, CFO and COO of Uniqlo India.
Inoue said the move is closely linked to Uniqlo’s retail expansion in India. “The target of 30% sourcing is always as soon as possible, but it’s not easy to localise”, he explained. “We use certain technology in our products, and we need scale to make these products. To increase domestic sourcing, we need to grow our India business”.
Since launching its first store in India six years ago, Uniqlo has steadily scaled its operations. The retailer’s revenues in India crossed Rs 1,000 crore in FY25, with profits more than doubling during the same period.
Currently, Uniqlo’s sourcing from India largely serves export markets. Despite uncertainties around global tariffs, India will continue to be a key sourcing hub for the company. “We are monitoring the broader tariff situation closely”, Inoue said, without disclosing how much of India’s sourcing goes to markets such as the US.
Uniqlo’s strategy in India also focuses on adapting its product portfolio to local preferences. The brand has tailored styles and colours to meet Indian consumer tastes, helping it compete with global retailers like H&M, Zara, and Levi’s, as well as domestic players and new-age D2C brands.
As part of its expansion plan, Uniqlo is entering new cities, including Bengaluru and Pune, while strengthening its online presence. The retailer aims to achieve Rs 3,000 crore in revenues in the next two to three years, reflecting the significant growth potential in India.
Although India is still a relatively small market for Uniqlo globally, the company sees it as a key growth engine. Inoue emphasized that the focus will remain on building a strong presence in existing markets rather than rapidly opening stores everywhere. “We are still small players in the market and have much space to grow”, he said.
Uniqlo’s commitment to local sourcing and thoughtful expansion highlights its long-term strategy in India, balancing global ambitions with domestic growth. The company’s efforts signal confidence in the Indian market, both as a consumer base and a manufacturing hub, as it continues to integrate India into its wider global operations.
