Facing a weaker Chinese market, Urban Revivo plans on expanding to the West. Urban Revivo's physical stores could help it break through to the US market, where it sells online. A Chinese fast-fashion company is planning a quick global expansion, just as industry heavyweights slow their growth to focus on online shopping.
Zara has been cutting its footprint post-pandemic, with plans to slash as many as 1,200 stores and double down on e-commerce. But China's Urban Revivo, founded in 2006, is eyeing markets well outside of Asia. Parent company Fashion Momentum Group wants to open in cities including London and New York, CEO Leo Li told Nikkei Asia.
FMG now has over 400 Urban Revivo outlets in mainland China and a handful across Southeast Asia. Its only foothold in Western markets has been via online shopping. Next year, FMG plans to launch 20 international Urban Revivo stores annually, a number that could accelerate to 50 per year in the long term, Li said.
He told Nikkei he hopes to expand the company to a $13.8 billion valuation — still well below competitors like Zara and H&M, whose parent companies have market capitalizations of around $155 billion and $23 billion, respectively. Zara has about 2,000 stores globally, while H&M has about 3,800.
FMG is also weighing an initial public offering in Hong Kong, which could raise $100 million, Bloomberg reported last month. FMG's focus on Europe and the US comes as some of its industry peers excel in those markets. Japan's Fast Ret.
