Question

2. UNIQLO is a Japanese casual wear designer, manufacturer and retailer that wishes to enter India’s Retail market. Conduct a PESTLE analysis for Uniqlo in India & suggest whether Uniqlo should enter India or otherwise.

Answer 1

Uniqlo is a Japanese casual wear designer, manufacturer and retailer that wishes to enter India's Retail Market. The PESTLE analysis for Uniqlo in India suggests that Uniqlo should enter India.

Political factors - the political factors in India for foreign brands to Retail are subject to changes but the economy and policy are open for investment. The government has approved the business and partnerships of many foreign brands and is open to any issues or problems faced by these companies.

Economic factors - The economy favours investment by foreign brands as there is scope for growth and purchasing power exists with presence of diverse workforce and retail environment in the country.

Social factors - There is considerable awareness among the Indian population of the foreign brands and willingness to buy. The local culture preferences can be studied and incorporated in the retail strategy of the company.

Technology - Technology can help the business improve its performance and there is availability of technological infrastructure with presence of many global firms and start ups creating a technology friendly environment.

Legal - The local factors related to employees, industry regulations are clear and in case of any disputes the legal guidelines are clear. The company can check and incorporate the measures in its policies and procedures.

Environment - The environmental factors need to be considered as it will improve the efficiency and corporate social responsibility performance of the organisation by introducing environmental awareness and practicing environmental friendly conscious practices.