By Casey Hall
SHANGHAI (Reuters) -China’s Urban Revivo will open a nearly 2,700-square-metre store in London on Wednesday, its second in the city this year, as the fast fashion retailer often likened to Inditex’s Zara accelerates its overseas expansion.
The brand is among a growing cohort of Chinese consumer companies – including coffee chain Luckin and art toy maker Pop Mart – seeking growth abroad as spending weakens at home, where a prolonged property crisis and wage security concerns have dampened consumer sentiment.
Urban Revivo, which operates over 400 stores worldwide selling 130 yuan ($18.17) tops and 350 yuan ($48.93) sundresses, has set a target to open 200 overseas locations within the next five years and has already launched stores in New York and Hong Kong, besides London, this year. It has around 20 stores in Southeast Asia.
Leo Li, chairman and CEO of Urban Revivo’s parent company Fashion Momentum Group (FMG), said being a global brand was part of the plan since its founding in 2006, and the overseas push has not been heavily influenced by market conditions in China.
FMG, headquartered in the southern Chinese city of Guangzhou, had sales of 7 billion yuan ($978.62 million) last year, according to media reports. Li said the goal is to have at least 5 billion yuan of group revenue coming from overseas markets by 2030.
“Product development is probably the most challenging aspect for us, especially when entering the European and American markets,” Li said.
The brand launched a European design centre in 2024 to create products tailored to Western consumer tastes and avoid the localisation missteps made by some Western fashion brands in the Chinese market.
Gabor Holch, founder of East-West Leadership, a consultancy, predicted social and environmental issues, political issues and data could also prove to be hurdles for Urban Revivo.
“One of the main secrets of success for Inditex and H&M is a very strongly data-driven business model. When Chinese companies step out of China, they have to start learning about (the overseas data environment) from basically zero,” Holch said.
Chengcheng Li, account manager at international creative advertising agency SuperHeroes, does not see Urban Revivo’s Chinese roots as a hindrance to success in the West.
“People nowadays don’t really care whether a product is from Europe, the U.S., or from Asia,” she said. “As long as they have something that resonates with them emotionally.”
Also on the agenda for FMG, in which Chinese venture capital firms Hongshan Capital and BA Capital have minority stakes, is a long-rumoured public listing.
“It’s definitely something we are going to do, but there is no specific timetable … it may not be too long away,” CEO Li said.
($1 = 7.1529 yuan)
(Reporting by Casey Hall; Editing by Muralikumar Anantharaman)
