Bengaluru: Japanese fashion retailer Uniqlo has opened its first store in Bangalore, marking its entry into southern India and signalling a more assertive expansion strategy in the country. The move comes as the brand, known for its “LifeWear” philosophy of functional and minimalistic clothing, looks to tap into the growing demand among India’s urban consumers.
Bangalore: A key market for Uniqlo
“Bangalore is a very key market for us, and it has been long-term coming,” said Nidhi Rastogi, marketing director and head, Uniqlo India. Even before the store’s launch, the city was Uniqlo’s second-highest contributor to e-commerce sales in India, growing 180% year-on-year. “We already knew the city loved the brand,” Rastogi added.
Uniqlo entered India in 2019 and currently operates 16 stores, far fewer than rivals Zara and H&M. Yet, the company has crossed Rs 1,100 crore in revenue and is now considered one of Uniqlo’s high-performing markets globally.
Slow but steady rollout
Despite robust year-on-year growth, Uniqlo’s store expansion in India has been cautious. Limited real estate availability and high rental costs have slowed progress. The brand also occupies a unique space—more premium than mass-market fast fashion but less trend-driven than competitors like Zara.
Its offerings, such as thermal wear, puff jackets, and wrinkle-resistant shirts, appeal to value-conscious consumers who prioritise durability and comfort. However, analysts note that Uniqlo faces stiff competition in India’s metro markets, where aggressive discounting by rivals and cheaper local alternatives challenge its strategy.
Marketing and customer experience
Uniqlo has invested significantly in digital campaigns, with around 60% of its ad spend going online. In Bangalore, the brand rolled out an immersive campaign called “LifeWear for Bangalore,” featuring augmented reality cubes and collaborations with local influencers.
Rastogi emphasised that “in-store experience is as much marketing as social media,” citing self-checkout counters and click-and-collect services as part of Uniqlo’s consumer-centric strategy. Unlike rivals, however, the brand has been restrained in mass-market advertising, a factor that may limit reach beyond major metros.
Tier-2 and Tier-3 expansion dilemma
Currently, 85% of Uniqlo India’s business comes from tier-1 cities. While there are single-store operations in Lucknow and Chandigarh, most of the brand’s focus remains metro-centric. In contrast, domestic and global competitors are already testing deeper penetration into tier-2 and tier-3 cities, often using regional-language marketing.
“For now, our first focus is tier-1 cities because that’s where our core target group lies,” Rastogi explained, while acknowledging the long-term potential of smaller markets.
India’s demographic advantage
Rastogi attributed Uniqlo India’s strong growth to structural advantages in the market. With a large base of Gen Z and millennial consumers, increasing awareness, and expanding store presence, India has emerged as one of Uniqlo’s top three fastest-growing markets globally.
Yet, its growth comes from a relatively small base. The challenge ahead lies in adapting to India’s diverse climate, regional fashion preferences, and sharp pricing competition.
Outlook: A test in Bangalore
The Bangalore store represents a crucial test for Uniqlo. The city’s young, tech-savvy consumer base makes it a natural fit for the brand’s minimalist and functional fashion philosophy. Whether Uniqlo can replicate its global scale in India will depend on how well it balances its global identity with local consumer expectations.