Japanese retailer Uniqlo keen on entering India market to source garments

Fast Retailing Group, a Japanese retailer that runs UNIQLO chain of casual clothing is keen to enter the Indian market aiming to source garments from India. The Japanese fashion retailer has been linked with Arvind to for its entry in India. The company Chairman Tadashi Yanai met Prime Minister Narendra Modi, Commerce and Industry Minister Nirmala Sitharaman and Textiles Minister Santosh Kumar Gangwar expressing intention to source garments from India. Modi welcomed Yanai’s interest in developing UNIQLO’s business in India, and highlighted the advantages that India enjoys in the garments sector, including availability of cotton, skilled manpower, robust infrastructure, a big domestic market and good ports for exports. At present India allows 100 per cent FDI in single brand retail and up to 51 per cent in multi-brand segment. However, Single-brand retailers are allowed to set shop in India but are required to source 30% of their goods from the domestic small and medium enterprises. UNIQLO has a total of 1,383 stores spread all over the world, including in its home Japan and overseas markets such as China, Hong Kong, Taiwan, Korea, UK, US, France and Russia. The Japanese retailer would like to begin with tying up with Indian exporters for sourcing readymade apparel from India for its retail stores.