UNIQLO's Unique Strategy in India's Growing Fashion Retail Market

India's fashion retail sector is intensely competitive, with both local and international brands seeking to capture a share of the market. In 2023, the fashion retail market in India was valued at Rs 4,82,728 crores and is forecasted to expand at a compound annual growth rate (CAGR) of 12.65%, reaching an estimated Rs 10,40,073 crores by 2030.

Key drivers of this growth include rising disposable incomes, increasing urbanization, and a rapidly expanding middle class. Among the fastest-growing segments is online fashion retail, which is projected to surge to Rs 4,29,857 crores at a CAGR of 25.2% from 2023 to 2028.

Popular international brands like Zara, H&M, Marks & Spencer, and Forever21 thrive by offering accessibility through a mix of physical stores, dedicated websites, and partnerships with multi-brand e-commerce platforms. In contrast, Japanese retailer UNIQLO, which entered the Indian market in 2019, is taking a different route. The brand has opted out of selling on third-party e-commerce platforms, instead focusing on its proprietary website and mobile app. Nidhi Rastogi, Marketing Director of UNIQLO India, explains that this choice is driven by the desire to control the customer experience and ensure a consistent brand journey.

UNIQLO’s marketing strategy is rooted in the Japanese philosophy of "Simple Made Better," which extends beyond the products to its overall approach to customer service. By avoiding third-party marketplaces, UNIQLO retains complete control over its presentation, delivery, and pricing. This allows the brand to provide a seamless and personalized interaction with customers, a unique approach in a market where online shopping often involves browsing multi-brand platforms.

"When you depend on third-party platforms, you lose control over crucial elements like product display, delivery standards, and even pricing," says Rastogi. "As a relatively new brand in India, it's essential for us to ensure that every interaction—whether online or offline—is distinctly aligned with UNIQLO's values."

According to Rastogi, this strategy also helps UNIQLO maintain a premium position in India's competitive market.

Store Expansion and Data-Driven Growth

UNIQLO’s focus on proprietary platforms is not just about customer control; it’s also a strategic move to gather valuable data. High online sales in Mumbai, for example, led the brand to open a physical store in the city in 2023.

In its latest expansion, UNIQLO launched an 18,380 sq. ft. retail space at Phoenix Palladium, Mumbai, spanning two floors, along with a new store in Pacific Mall Tagore Garden, New Delhi. With 15 stores now across cities like Delhi, Chandigarh, and Mumbai, the brand continues to expand its presence in India.

Currently, 85% of UNIQLO’s sales in India come from physical stores, while 15% are from its dedicated e-commerce channels. The company anticipates rapid growth through exclusive app-based benefits and personalized offers. “We’re committed to owning the customer experience,” says Rastogi. “Privacy is a priority for us as a Japanese brand, so even in-store, we don’t collect phone numbers or send unsolicited messages. Instead, we encourage customers to engage with us through our app for tailored offers and unique benefits.”

Celebrity Endorsements and Influencer Campaigns

UNIQLO has also been leveraging celebrity endorsements to boost its brand visibility in India. In 2023, Katrina Kaif became the brand's first ambassador in India, raising awareness during her year-long contract. Building on this success, UNIQLO introduced Kareena Kapoor and Siddharth Malhotra as its new ambassadors for the fall-winter season, both of whom are fans of the brand.

“While celebrities give us wide reach, we also collaborate with relevant influencers to generate buzz for store openings and launches,” says Rastogi. For the Phoenix Palladium store launch, the brand partnered with influencers like Rohan Joshi, Lillete Dubey, and Ayush Ailawadi to drive Mumbai-specific conversations.

Despite being a relatively new entrant, UNIQLO has managed to grow steadily in India, thanks to its unique clothing offerings such as no-iron shirts, bra tops, and ultralight down jackets. This commitment to quality and innovation is helping the brand carve out a niche in the competitive Indian fashion market.