China’s Zara tries going global in hopes of Shein-like success

Global Ambitions of Chinese Apparel Brands

FAST-FASHION retailer Shein blazed a trail for Chinese companies in the US and European markets. Now, another China-based apparel brand wants to replicate its success.

Urban Revivo’s Global Expansion Plans

With more stores than Inditex SA’s Zara and Hennes & Mauritz AB’s H&M in China, and catching up to them in South-east Asia, Guangzhou-based Urban Revivo is set to open its first US flagship store in New York City’s Soho on Friday. It’s one of 25 stores outside of China that founder Leo Li has planned for this year, including two more in London, and several in Japan and the Middle East.

Supply Chain Expansion

If all goes well, new store openings outside of China could accelerate next year, with overseas outlets reaching 100 by then, he said. Meanwhile, Li is also sketching out a supply chain outside of China that will eventually make at least half of the apparel sold in overseas markets. Production will start in Turkey this year for Europe, and the company is also exploring local manufacturing partners for the US market.

Ambitious Plans for Globalization

"We ventured out to South-east Asia in 2016 but real globalization for fashion only starts when we break into US and Europe," Li said in an interview with Bloomberg News, "Now our going global is for real."

Chinese Apparel Makers’ Global Ambitions

It’s an outsized ambition for a Chinese brand with annual sales of roughly $1 billion, just a fraction of what Zara, H&M, and Shein can earn, but Shein’s global success shows Chinese apparel makers can secure a foothold in Western fashion capitals. Urban Revivo not only plans to add storefronts but also factories near or in the overseas market it will sell. That underscores the urgency to build a parallel supply chain as part of Chinese companies’ global expansion plans in the face of punitive trade policies unleashed by US President Donald Trump.

Conclusion

Urban Revivo’s global ambitions are a testament to the growing presence of Chinese apparel brands in the global market. With a focus on trendy and affordable clothing, Chinese brands like Urban Revivo are well-positioned to compete with established players in the market. As they continue to expand globally, it will be interesting to see how they adapt to local consumer preferences and market conditions.

Frequently Asked Questions

Q: What is Urban Revivo’s expansion plan?
A: Urban Revivo plans to open 25 stores outside of China this year, including two in London and several in Japan and the Middle East.

Q: Where will Urban Revivo produce its clothing for overseas markets?
A: The company will start producing its clothing in Turkey for the European market and is exploring local manufacturing partners for the US market.

Q: How does Urban Revivo plan to compete with established global fashion brands?
A: Urban Revivo plans to leverage its mature supply chain and e-commerce expertise to respond to fickle consumer tastes in days, rather than the weeks and even months that it usually takes for international rivals.