MANILA, Philippines — UNIQLO, Japan’s number one casual clothing store chain, plans to increase its sourcing of garments from the Philippines for both local and export markets even as it eyes the establishment of 15 to 20 stores in the country within a three-year period.

Naoki Otoma, executive vice president of Fast Retailing Co. Ltd. and managing director of UNIQLO Asia & Japan, said at yesterday’s formal launch of the UNIQLO brand in the Philippines and the introduction of Fast Retailing Philippines Inc., its joint venture with the SM Group, where the Japanese retailer holds the majority 75 percent stake and the SM Group with the remaining 25 percent.

The first UNIQLO store in the country will open in June in a sprawling 1,550 square meter floor space in SM Mall of Asia. The company also bared plans to build 15 to 20 stores in three years. Under the Philippines Retail Act, each retail outlet would be required with a minimum investment of $830,000 or an estimated investment of $16.6 million for 20 outlets.

Otoma, who admitted that some of their women’s products are produced in the Philippines, said that UNIQLO may increase their sourcing in the country as the company expands its reach and demand for its products improves.

He said that such move would not only mean supplying to its Philippine stores but to support its expansion in other countries in the region.

“Basically, we want to be present in all of the 10 ASEAN countries but we want to get into the six countries as soon as possible,” he said. UNIQLO has presence in Thailand, Singapore and Malaysia. The next ASEAN destination would be Indonesia and Vietnam. He said the Philippines is not significantly different from the other ASEAN countries.

Otoma said that sales in Asia have reached 70 billion yen and the biggest market outside Japan is China followed by Korea and ASEAN.

He said that UNIQLO has started to position itself in the Philippines because of the growing economic status and a more improved lifestyle of Filipinos in the next 15 years this.

Otoma said they have chosen the SM Group as its local partner because of its grasp and reach of the Philippine market stressing their casual clothing would cater to all market segments of the local market.

He considered other consumer goods like cellphones as its competitor, but not other clothing brands like Forever 21, which is also being carried by SM.

“They are not our competitor. We are of the same genre, we are an option and they are an option. Other expenses for other goods are our competitor, but not someone from our own sector,” he said.

In fact, SM’s experience in handling a big foreign clothing brand like Forever 21 is one factor that made UNIQLO chose the Henry Sy company over other interested parties.

As of January this year, UNIQLO’s network of stores include 851 locations in Japan, 214 throughout the rest of Asia and 234 in other foreign markets.(BCM)