homevideos Newsbusiness NewsJapanese retailers bet big on India, but affordability could be a challenge
Japanese retailers bet big on India, but affordability could be a challenge
In recent years, the Indian retail sector has witnessed a surge in the presence of Japanese brands such as Muji, Asics, and Shiseido, all outlining extensive expansion strategies for the Indian market. Despite the promising prospects, the challenge lies in the premium and prestige positioning of these Japanese brands. Experts point out that targeting the affluent and aspirational young professionals may pose a challenge, considering the price sensitivity of the Indian consumer.
In recent years, the Indian retail sector has witnessed a surge in the presence of Japanese brands such as Muji, Asics, and Shiseido, all outlining extensive expansion strategies for the Indian market.
According to Nicole Tan, president and CEO of Shiseido Asia Pacific, India is at a crucial turning point. With consumers ready and influenced by travel and the internet, coupled with a rising middle class, India presents an exciting opportunity to provide a comprehensive service experience to its consumers.
Muji is actively seeking 20,000-22,000 square feet of space in malls for expansive stores, while Uniqlo is aggressively expanding its store footprint, aiming to establish itself as a leading apparel brand in India and reinforce the country's role as a production hub.
Tomohiko Sei, CEO of Uniqlo India, emphasises the significant growth potential in India, citing the country's size, high growth rate, and youthful demographic. Uniqlo is keen on expanding its production operations in India.
Asics, the Japanese sportswear brand, is optimistic about the fitness-conscious Indian market. Rajat Khurana, MD of Asics India, notes the growing popularity of running culture in tier III and tier IV cities.
As part of its growth strategy, Asics plans to increase its retail presence from 100 stores to 200 stores, expanding its point of sales from the current 700 to 1,200 in the next two to three years.
Despite the promising prospects, the challenge lies in the premium and prestige positioning of these Japanese brands. Experts point out that targeting affluent and aspirational young professionals may pose a challenge, considering the price sensitivity of the Indian consumer.
While some brands acknowledge this hurdle, others are banking on the rising affluence and evolving brand-conscious preferences to fuel their growth in the Indian market.
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