Fueled by a burgeoning middle class and a growing preference for minimalistic, high-quality goods, Japanese brands are making significant strides in India.
While Japanese cars, watches, and electronics have long enjoyed popularity among affluent Indians due to their craftsmanship, a new wave of mid-range retailers is tapping into this reputation for quality. Currently, around 1,400 Japanese firms operate in India, drawn by the country's vast manufacturing base and favorable foreign investment policies.
Household names like Muji, KAI, and Wacoal have entered the Indian market in recent years, offering everything from fast fashion to kitchenware. With over two-thirds of India's population under 35, brands like Uniqlo are resonating with millennials and Gen Z consumers seeking simplicity and functionality over flashy designs.
A top fashion brand, Uniqlo expanded into India in 2019, quickly opening multiple stores across major cities. Its revenue surged by 69 per cent last year, heating up competition in a market that also includes global giants like H&M.
A key factor behind Uniqlo's popularity in India is its focus on localising products. The brand caters to the tastes of Indian consumers by collaborating with Indian designers and using local materials,
Another Japanese brand that has success through partnerships with Indian companies includes Wacoal which is known for its durable innerwear. The brand entered India in 2015 through a joint venture and has since achieved impressive growth. Renowned for its minimalist aesthetic, Muji partnered with Reliance Brands to open several stores across India.
Japanese retailers have been effective in conveying their distinctive qualities to Indian consumers. For instance, Uniqlo's ‘Arigato Festivals’ during seasonal sales resonate with urban Indians familiar with Japanese culture through media like anime and manga.
Price sensitivity has historically been a challenge for Japanese retailers in India, but experts believe they are focused on building a loyal customer base first before adjusting pricing strategies.
