Tokyo Lifestyle, the Japanese beauty and lifestyle retailer formerly known as Yoshitsu, has raised HK$20 million (about $2.56 million) from a Hong Kong-based private investor to back its business.
The company said the financing was obtained under a strategic investment agreement signed on May 1, 2025.
Tokyo Lifestyle said the capital will be channeled towards expanding Tokyo Lifestyle’s (TKLF HK) physical retail network in Hong Kong.
It is also expected to be used for operating expenses, expanding customer reach, restocking and procurement.
The agreement has an initial duration of three years, after which the refund may be applied, depending on the terms established in the agreement.
Mei Kanayama, CEO of Tokyo Lifestyle, said: “By taking a more active role in management, the investor is expected to strengthen local execution, improve coordination between sourcing, sales, marketing and channel development, and improve our ability to identify market opportunities and quickly respond to changing consumer demand.”
Under the agreement, the undisclosed investor will be appointed CEO of TKLF HK for three years starting May 1, 2025.
The period may be extended, with prior written agreement of both parties at least 30 days before the end of the initial period.
In the role, the CEO will be responsible for daily operations and external collaborations.
Duties include executing business plans, overseeing budgets, setting sales and marketing directions, building teams, establishing management systems, and providing regular updates to the board of directors.
The company said compensation will include a monthly salary along with profit-sharing incentives tied to performance benchmarks.
These include goals tied to revenue and profit growth, higher gross margins, improved inventory turns, progress on store launches, new business development and cost management.
Tokyo Lifestyle said the structure aims to strengthen its presence in Hong Kong, accelerate the launch of company-operated stores and enhance regional operational capacity.
The retailer also noted that it opened its first directly managed store under the Reiwatakiya brand in Ho Chi Minh City, Vietnam, in November last year.
The store is on Nguyen Thi Minh Khai Street, which the company described as a key commercial area, and is positioned to serve local and international shoppers due to its proximity to shopping malls and landmarks.
“Tokyo Lifestyle’s Hong Kong unit secures HK$20 million investment” was created and originally published by Retail Insight Network, a brand owned by GlobalData.