“We are looking to invest in the retail business in India,” one source familiar with the development told Times of India. “We will look to open 1,000 stores but it will take more than ten years as it is not easy to open so many stores.”
It is not clear if Uniqlo will tie in a partner for its single-brand retail foray or operate through a wholly-owned subsidiary in the country.
Key to the move will be having an adequate sourcing base in the country, because India requires that foreign companies operating fully owned single brand retail operations source at least 30 percent of their products from India. Uniqlo is already in talks with the Apparel Export Promotion Council (AEPC) to identify 10 suitable garment exporters with the right scale and international specifications, and sources told the newspaper it may invest in some of them if required.