Japanese Retailer Uniqlo May Enter India Through Arvind
In a move that will facilitate Indian citizens to flash Japanese brand, Uniqlo, the foreign retailing giant is set to start shop in India by partnering with well established retailer Arvind, says TOI.
The financial details of the potential equity JV remain unknown.
Uniqlo, as a contraction of "unique clothing", is parented by Fast Retailing Co., Japan’s largest apparel retailer. It has around 845 stores in Japan and 292 shops elsewhere, including the Singapore, the U.K and the U.S.
It is identified as an aggressive brand that sells fashionable merchandise at competitive prices.
The India entry would also play a part in the company’s targeted annual group sales of 5 trillion yen (around $61 Bn) by 2020.
Meanwhile Arvind Lifestyle Brands, one of the largest and well-known retailing brands in India, was set to bring in global surfwear brand Billabong to India.
Just late last year it acquired the business operations of British fashion retailers Debenhams, Next and American Lifestyle Brand Nautica in India from Planet Retail.
Apart from having licensing relationships with various international partners, Arvind operates a network of 730 stores and 650 shops-in-shop counters.
Not only Uniqlo, another Japanese fashion apparel firm World Co. Ltd. has also been test marketing its product in the country and was looking for potential partners. Some of the brands it plans to launch here include Couture Brooch, Hot Beat, Ozoc and Opaque.
Globally, Uniqlo competes with Sweden’s H&M (Hennes and Mauritz), Spain’s Inditex that owns brands such as Zara and Bershka and American casual wear retailer Gap Inc.
Uniqlo Vs Competitors
|Origin (Year)||Japanese (1984||American (1969)||Swedish (1947)||Spanish (1975)|
|Global Store Count||1,100||1,587||2,352||1,631|
|Projected Revenue (2012)||$10 Bn||$5.8 Bn||$17.2 Bn||$13.6 Bn|
Newly introduced liberalized policies for FDI in retail has certainly garnered interests from overseas retail giants to set shops in India.
Recently Italian luxury brand Versace 19.69 Abbigliamento Sportivo tied up with Majgenta Fashions and was looking to raise $10 Mn of VC/angel funds.
Reliance Brands was planning to acquire 50% stake with management rights in the proposed JV with Italian apparel maker – Grotto which owns jeans brand GAS.
American luxury-clothing retailer Brooks Brothers had also received the permission from FIPB to set up stores in India.
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