Why UNIQLO confidently says no to e-comm marketplaces in India

The fashion retail landscape in India is quite competitive with homegrown as well as international brands vying for a piece of the pie. India’s fashion retail market was estimated at Rs 4,82,728 crores in 2023 and is projected to grow at a CAGR of 12.65%, reaching a value of Rs 10,40,073 crores by 2030.

A prominent driver of the market is increasing disposable incomes, rapid urbanisation, and a burgeoning middle class. Among these, the online fashion retail segment is estimated to grow even faster, with projections indicating an increase of Rs 4,29,857 crores at a CAGR of 25.2% between 2023 and 2028. 

Brands such as Zara, H&M, Marks & Spencer and Forever21 thrive on accessibility across multiple channels such as physical stores, websites and e-commerce marketplaces. However, Japanese fashion giant UNIQLO that entered India in 2019 is charting a different course. Since its arrival in India, the brand has chosen to eschew e-commerce marketplaces and instead focus on its proprietary website and app for online sales. 

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Nidhi Rastogi, marketing director, UNIQLO India, says this decision reflects the brand's commitment to owning the customer experience and delivering a seamless brand journey.

UNIQLO's marketing philosophy revolves around the Japanese ethos of "Simple Made Better," which extends beyond its product offerings to its customer service approach, she says. By opting out of marketplaces, the brand retains full control over how its customers interact with it.

“We believe in owning the customer experience,” explains Rastogi. “As a Japanese brand, we are particular about the privacy of our customers. Even in-store, we don’t take phone numbers or bombard customers with messages. Instead, we encourage them to proactively engage with us through our app, where they can discover personalised offers and exclusive benefits.”

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This stance may seem counterintuitive in a country where online shopping is synonymous with browsing multi-brand marketplaces. However, UNIQLO sees its strategy as an opportunity to build lasting relationships with its customers—one personalised interaction at a time.

“When you rely on third-party platforms, you lose control over critical aspects like product presentation, delivery experience, and even pricing. As a new brand in India, we want to ensure that every customer’s journey with UNIQLO—whether online or offline—is distinctly ours,” says Rastogi. 

This strategy, according to her, also allows the brand to maintain its premium positioning in the market. 

Nidhi Rastogi, Marketing Director at UNIQLO India.

Store expansion and the role of data

UNIQLO’s focus on proprietary platforms isn’t just about controlling the customer experience—it’s also a powerful data-gathering tool, says Rastogi. For example, high e-commerce sales from Mumbai prompted the brand to enter the city in 2023. 

The brand has now opened another 18,380 sq. ft. retail store spread across two floors at Phoenix Palladium. It launched another new store in Pacific Mall Tagore Garden, New Delhi. With 15 stores across cities like Delhi, Chandigarh, and Mumbai, the brand is gradually broadening its footprint across India. 

According to Rastogi, physical stores contribute 85% of its sales in India, and the brand’s own e-commerce website and app contribute 15% to its sales. However, it expects to grow rapidly on the back of exclusive app-based benefits, experiences, and offers. 

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Celebrity and influencer-led marketing campaigns 

In 2023, the brand introduced Katrina Kaif as its first brand ambassador in India. Building on this momentum, it has now brought Kareena Kapoor and Siddharth Malhotra on board as its new ambassadors.

“Katrina was our first ambassador in India. We signed her in August 2023 for a one-year contract, which ended this summer. Her involvement significantly increased brand awareness, aligning with our goal of introducing UNIQLO to more people in India,” says Rastogi. 

“To expand our audience further, we’ve partnered with Kareena and Siddharth for the fall-winter campaign; both are huge UNIQLO fans.” 

Rastogi explains that while celebrities provide them with reach, they also partner with relevant influencers to drive audiences to stores during launches. “For the Palladium Mall launch, we partnered with various influencers like Rohan Joshi,  Lillete Dubey, Ayush Ailawadi, etc, to drive Mumbai-specific conversations.

Rastogi adds that despite being a fairly new entrant in India, the brand has managed to grow significantly on the back of its patented clothing offerings such as no iron shirts, bra tops, and ultralight down jackets, among others. 

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