The fashion and lifestyle retailing market is witnessing rapid growth in China, with a CAGR of 13.8% from 2017 to 2021.
KK Group Company Holdings Limited (Chinese: KK集团) filed listing application to Hong Kong Stock Exchange on January 20, with Morgan Stanley and Credit Suisse as its joint sponsors.
The proceeds will be used for expanding store networks, improving supply chain management, and building retail infrastructure.
KK Group is a retailer targeting young consumers. It highlights immersive shopping experiences and encourages customers to try out products in the stores. Its product portfolio covers cosmetics, toys, food and beverages, home products, and stationery. KK Group owns lifestyle specialty brand KKV, beauty specialty retail stores THE COLORIST, pop culture specialty retail stores X11, and lifestyle mini marts KK guan, with 383, 207, 50 and 67 stores respectively. The group has opened retail stores in 31 provinces in China and 13 cities in Indonesia. It plans to add 270 new stores in 2023.
KK Group achieved revenues of CNY 464 million (USD 68.4 million), CNY 1,646 million, CNY 3,524 million and CNY 3,067 million in 2019, 2020, 2021, and the first 10 months of 2022, respectively. It recorded operating losses of CNY 88.6 million, CNY 142.5 million, CNY 237.5 million and CNY 159.6 million for the same periods.
Other players on the field include TOP TOY, owned by MINISO (Chinese: 名创优品, NYSE: MNSO), Kule Chaowan (Chinese: 酷乐潮玩), and WOW COLOUR.