Kohlberg Kravis Roberts’ KKR China Growth Fund, a China-focused investment fund managed by KKR, has invested in Novo, a fashion apparel retailer focused on the urban youth demographic in China.
Since KKR’s investment, Novo has expanded its nationwide store network and pursued licensing agreements with international fashion brands to help fuel its growth in China.
“Novo was one of the first and remains one of the largest established specialised department store chains targeting the underserved urban youth fashion market in China. We are very impressed with KKR’s global franchise and the China team’s strong track record. There is a history of growth when retail companies partner with KKR and we are confident that this partnership will enable us to leverage their retail industry expertise and local knowledge to further grow our business as an industry leader in China,” says Alan Fang, chairman and chief executive of Novo.
“We see enormous long-term growth potential in the Chinese fashion retail industry driven by rising domestic consumption and an increasing demand for the latest fashion trends. The Chinese youth apparel retail market is a USD38bn industry and has been growing at 16 per cent per annum since 2005. Novo has developed a unique business model with extensive local network and supplier relationships which enable it to fully capitalize on the rising demand in the Chinese youth fashion market over the long term,” says David Liu, member of KKR and chief executive of KKR Greater China.
