Japanese fashion giant Uniqlo in JV talks with Aditya Birla, DLF
Japanese fashion giant Uniqlo has held discussions with Aditya Birla & DLF Retail to enter Indian market through JV.
MUMBAI: Japanese fashion giant Uniqlo has held discussions with Aditya Birla Group and DLF Retail to enter the Indian market through a joint venture, said sources briefed on the matter. The ongoing talks with Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo, was fairly advanced as Uniqlo wants to tap India's relatively robust consumer market to offset setbacks at home, they added.
The $9 billion Tokyo-headquartered Uniqlo's parent Fast Retailing Co Ltd - famous for its basics, t-shirts, socks and jeans - competes with global peers H&M and Gap Inc with fast forward merchandise and sharp pricing. Uniqlo's aggressive pricing makes it a scalable business model in the Indian market and has attracted the interest of potential Indian partners, including Madura.
In an email response, Uniqlo's press office said, "We would love to have our brand stores in India. However, we do not have specific plans that we can share with you at this moment. When we are ready to announce the details, we will share it through an official announcement."
Uniqlo typically enters international markets either on its own or through a joint venture. It does not use the franchise route, the company spokesperson added in the email. Earlier this year, the president of the retail chain, Tadashi Yanai said the company aims to enter the Indian market "as soon as possible" to tap faster-growing economies like India in order to drive sales.
"In 2011, we expect Japan sales to be 72.7% of the entire business given the growth of international business which is slated to increase to 12% from 8.9%," the company spokesperson said. In 2010, the retailer's sales from Japan stood at 75.5%.
Spanish giant Zara, part of the world's largest clothing group Inditex SA, opened doors in the country last year and plans to ramp up fast. Zara parachuted with a sharp pricing strategy for India which met with significant success early on. H&M has had business development talks in recent months, but there is no clarity on its entry plans yet.
Industry sources confirmed Uniqlo's meetings with potential local partners, and added it was also engaging DLF Ltd's retail arm exploring the latter's interest in an alliance. Madura is in the midst of rejigging its international brands business, which revolves around Esprit currently. This Aditya Birla firm has had a conservative approach to partnerships with global brands, and dropped joint venture palns with Giorgio Armani in the past. When contacted, Aditya Birla spokesperson declined to comment on speculation.
The $9 billion Tokyo-headquartered Uniqlo's parent Fast Retailing Co Ltd - famous for its basics, t-shirts, socks and jeans - competes with global peers H&M and Gap Inc with fast forward merchandise and sharp pricing. Uniqlo's aggressive pricing makes it a scalable business model in the Indian market and has attracted the interest of potential Indian partners, including Madura.
In an email response, Uniqlo's press office said, "We would love to have our brand stores in India. However, we do not have specific plans that we can share with you at this moment. When we are ready to announce the details, we will share it through an official announcement."
Uniqlo typically enters international markets either on its own or through a joint venture. It does not use the franchise route, the company spokesperson added in the email. Earlier this year, the president of the retail chain, Tadashi Yanai said the company aims to enter the Indian market "as soon as possible" to tap faster-growing economies like India in order to drive sales.
"In 2011, we expect Japan sales to be 72.7% of the entire business given the growth of international business which is slated to increase to 12% from 8.9%," the company spokesperson said. In 2010, the retailer's sales from Japan stood at 75.5%.
Spanish giant Zara, part of the world's largest clothing group Inditex SA, opened doors in the country last year and plans to ramp up fast. Zara parachuted with a sharp pricing strategy for India which met with significant success early on. H&M has had business development talks in recent months, but there is no clarity on its entry plans yet.
ADVERTISEMENT
Industry sources confirmed Uniqlo's meetings with potential local partners, and added it was also engaging DLF Ltd's retail arm exploring the latter's interest in an alliance. Madura is in the midst of rejigging its international brands business, which revolves around Esprit currently. This Aditya Birla firm has had a conservative approach to partnerships with global brands, and dropped joint venture palns with Giorgio Armani in the past. When contacted, Aditya Birla spokesperson declined to comment on speculation.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
Related Articles
Japan cancels 100 flights as twin storms approachADVERTISEMENT
