Leo Li Minguang, inspired by a Zara store in Japan, founded Urban Revivo in 2006. The brand has grown to over 400 stores in China, with significant revenue achievement. As domestic spending declines, FMG aims for global expansion and plans to raise funds through a Hong Kong IPO while China’s overseas investments continue to rise.
In 2005, Leo Li Minguang, a treasurer employed in construction, experienced a moment of inspiration upon visiting a Zara store in Japan. The vibrant atmosphere, characterized by bright lights and upbeat music, drastically differed from the mundane department stores in China. Recognizing a business opportunity, he inquired about franchising options but learned it was not available, prompting him to pursue a venture independently.
In 2006, Mr. Li opened Urban Revivo in Guangzhou, transforming eight stalls into a unique retail space filled with fashionable clothing and an inviting ambiance created by foreign music. Fast forward to the present, the brand boasts over 400 stores across China, significantly outpacing Zara’s operations in the nation. In 2024, Urban Revivo’s holding company, Fashion Momentum Group (FMG), recorded revenues of 7 billion yuan (approximately $964 million), surpassing Uniqlo’s sales on major e-commerce sites for two consecutive years.
FMG’s ambitions extend beyond the domestic market. At the December inauguration of Urban Revivo’s largest international store in Bangkok, Mr. Li expressed his goal of establishing a dominant global apparel brand within two decades, targeting 200 billion yuan in annual revenue predominantly from overseas markets. To facilitate this expansion, the company is reportedly looking to raise $100 million through a Hong Kong initial public offering (IPO), with backing from prominent investors such as HongShan, previously known as Sequoia Capital China.
Urban Revivo is part of a broader trend among Chinese companies seeking to expand internationally. With sluggish domestic consumption and a persistent property crisis, many firms are prioritizing overseas ventures. Official statistics indicate that China’s non-financial overseas direct investment surged by 10.5% year-on-year in 2024, exceeding $143.9 billion. For over a decade, China has maintained its status as the world’s third-largest international investor, following the United States and Japan.
In conclusion, Urban Revivo’s impressive growth in the Chinese market signals a significant shift towards international expansion for Chinese companies. With strategic funding initiatives and a clear vision for global influence, Urban Revivo exemplifies the new direction many firms are taking in response to domestic economic challenges. As overseas investments continue to grow, the future looks promising for China’s global retail ambitions.
Original Source: www.scmp.com
Leave a Reply