business

Fast Retailing to open Uniqlo clothing stores in Russia, India

6 Comments

Fast Retailing Co said Wednesday it is considering opening outlets of its flagship Uniqlo casual wear brand in Russia and India.The Japanese clothing giant said it aims to triple its overseas sales over two years.

Fast Retailing said it will also open the doors to the first Uniqlo outlet in Singapore in the first half of 2009.

Fast Retailing founder and president Tadashi Yanai said the balance of power in the global economy was shifting to fast-growing developing economies such as China and India.

"No one can change this major global trend," he told a news conference. "You cannot achieve a global expansion without having production bases in countries like Bangladesh, Vietnam and India."

The company wants to more than double its number of outlets outside of Japan over two years to boost its overseas revenue to 100 billion yen, up from 30 billion yen now.

Fast Retailing, which owns global brands including Comptoir des Cotonniers, is also seeking mergers as part of a mid-term goal of achieving one trillion yen in annual sales.

"We have not given up the goal but we cannot achieve it without mergers and acquisitions," Yanai said.

Fast Retailing lost out last year in a bidding war for the New York department store Barneys that almost reached $1 billion, but Yanai said he was ready for an even bigger deal.

Uniqlo flourished during Japan's 1990s recessions by selling cheap yet good quality clothing, mainly manufactured in China, as years of deflation made consumers more frugal.

In 2006, it opened a flagship store in New York's Soho district, followed by major new stores last year in London and Paris.

It is unfazed by the prospect of Swedish rival Hennes and Mauritz opening its first outlet in Japan later this year, vice president Naoki Otoma said.

"They are not a threat to us," Otoma said, adding that H&M's arrival in Japan would help stimulate Japan's sluggish clothing market.

© Wire reports

©2021 GPlusMedia Inc.

6 Comments
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UNIQLO failed in U.K. Now it will fail in Russia and India. In these two markets rich people like to buy international brand such as Lee, Levis, Diesel, Wrangler, etc. It’s too bad for India also as Uniqlo creates unnecessary competition in India, where many local manufactures may suffer with this new brand.

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Depends on how Uniqlo positioning themselves and their target segment. Uniqlo can succeed if they position themselves like Zara - lower -middle class/young generation with moderate income.Indian and chinese customers are too smart and cost consious than japanese.Also Uniqlo will face stiff competition from local copycats.I personally like Uniqlo and how they changed the brandloving japanese mindset, delivering quality stuff at low cost

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Usually C&A, Zara, ... are using russian market for garbage stores with prices more 2-3 times higher as for EU or US market - non actual overpriced items - may be it's good idea for success busines of major brand for russia ;-)

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They might be cheap in Japan, but will turn out moderately expensive in India! They should market accordingly

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Russian and India market should be saturated, there is still need more business expansions there. Russian and India comsumption market,can contribute to Uniqlo and other companies.

Russians and indians are still slow to pick up in economic excellence like the China.

They need to unlearn and relearn to ways, for economic excellence from japan companies.

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I also like Uniqlo. High-quality clothes at a cheap price. I especially like the "Dry" line of clothing for summer that they have. No matter how much you sweat in them, they dry quickly; thus no "gym-locker, moldy" smell from them. Also, I have several Uniqlo shirts and jeans which have lasted me for several years now and still look good.

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