Leo Li Minguang founded Urban Revivo in 2006 after recognizing a business opportunity in fashion during a trip to Japan. The brand has expanded significantly, operating over 400 stores in China and outperforming competitors like Uniqlo. Urban Revivo aims to become a global powerhouse in the apparel sector with substantial growth plans, seeking to raise US$100 million in an IPO. The surge in Chinese companies looking to invest overseas is partly driven by a cooling domestic market.
In 2005, Leo Li Minguang, then a treasurer at a construction firm, first visited a Zara store in Japan and was captivated by the vibrant atmosphere and fashionable offerings. Seeing a promising business opportunity, he sought to franchise, but upon learning it was not an option, he opted to establish his own clothing line. In 2006, Li transformed eight small stalls in Guangzhou’s Grandview Mall into a single expansive store named Urban Revivo, showcasing floral dresses and bell-bottomed jeans accompanied by foreign music.
Eighteen years later, Urban Revivo has grown to operate over 400 locations across China, surpassing Zara’s presence in the market. In 2024, the company’s holding entity, Fashion Momentum Group (FMG), achieved revenues of 7 billion yuan (approximately US$964 million), while outperforming Uniqlo on major domestic e-commerce platforms in sales for consecutive years.
FMG’s ambitions have extended beyond the domestic market, with plans to establish Urban Revivo as a leading global apparel brand within two decades, targeting annual sales of 200 billion yuan, predominantly from international markets. Following the opening of Urban Revivo’s largest overseas store in Bangkok, Li revealed that the company is pursuing a US$100 million initial public offering (IPO) in Hong Kong to expedite this growth strategy.
The desire to expand internationally is not unique to Urban Revivo; many Chinese companies are exploring overseas markets amid sluggish domestic consumption and ongoing property sector challenges. Official statistics indicate that China’s non-financial overseas direct investment (ODI) increased by 10.5 percent in 2024, exceeding US$143.9 billion, solidifying China’s position as one of the top international investors, alongside the United States and Japan.
The journey of Urban Revivo exemplifies the potential of Chinese consumer firms in the global fashion landscape. With a robust domestic presence and aspirations for international expansion, the brand aims to become a leading entity in the apparel market worldwide. Increased overseas investments reflect a broader trend among Chinese firms adapting to challenges at home by seeking growth abroad. In summary, Urban Revivo’s success and growth ambitions illustrate the ongoing dynamics of globalization in China’s consumer industry.
Original Source: www.scmp.com
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