Leo Li Minguang founded Urban Revivo after being inspired by Zara in Japan, leading to significant growth in China with over 400 stores and substantial revenues. The brand is now pursuing international expansion, aiming for a global apparel empire. Despite domestic challenges, many Chinese firms are also looking abroad, resulting in increased overseas direct investment.
In 2005, Leo Li Minguang, then a treasurer at a construction firm, visited a Zara store in Japan and was captivated by its vibrant atmosphere. Recognizing a potential business opportunity, he sought to franchise but was told it was not available. This prompted him to establish his own clothing brand, leading to the creation of Urban Revivo in 2006 within Guangzhou’s Grandview Mall, displaying an assortment of trendy apparel.
Eighteen years later, Urban Revivo has expanded significantly with over 400 stores in China, surpassing Zara’s operations in the country. In 2024, the company reported impressive earnings of 7 billion yuan (approximately US$963.8 million) and outperformed Uniqlo in domestic sales over the past two years on major e-commerce platforms. Urban Revivo showcases its successful concept of fusing Western fashion influences with local market trends.
Ambitiously, Urban Revivo, through its holding company Fashion Momentum Group (FMG), aims for international growth. At a recent store opening in Bangkok, Li expressed the brand’s vision to evolve into a leading global apparel enterprise within two decades, targeting 200 billion yuan in annual sales primarily from international markets. To facilitate this expansion, FMG plans to raise US$100 million through a Hong Kong initial public offering (IPO).
Notably, Urban Revivo is not the only Chinese firm aiming for international markets. Many companies are shifting their focus overseas due to stagnant domestic demand and an ongoing property crisis. Recent statistics indicate an increase of 10.5% in China’s non-financial overseas direct investment (ODI) in 2024, totaling over US$143.9 billion, solidifying China’s position as the world’s third-largest international investor, trailing only the US and Japan.
In summary, Urban Revivo’s rapid growth illustrates the potential of Chinese consumer brands in global markets. Leo Li’s journey from a local entrepreneur to the head of a burgeoning fashion empire reflects broader trends among Chinese companies seeking to expand internationally amidst domestic challenges. The brand’s ambitious plans reveal both the opportunities and the pressures involved in global expansion for consumer firms in China.
Original Source: www.scmp.com
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