Tokyo Lifestyle, the Japanese beauty and lifestyle retailer previously known as Yoshitsu, has obtained HK$20m (about $2.56m) from a Hong Kong-based private investor to support its business.

The company said the funding was secured under a strategic investment agreement signed on 1 May 2025.

Tokyo Lifestyle said the capital will be channelled into expanding Tokyo Lifestyle (TKLF HK)’s physical retail network in Hong Kong.

It is also expected to be used for operating expenses, extending customer reach, replenishing stock and procurement.

The agreement has an initial term of three years, after which repayment may apply, depending on the terms set out in the deal.

Tokyo Lifestyle principal executive officer Mei Kanayama said: “By taking a more active role in management, the Investor is expected to strengthen local execution, improve coordination across sourcing, sales, marketing, and channel development, and enhance our ability to identify market opportunities and respond quickly to changing consumer demand.”

Under the arrangement, the undisclosed investor has been appointed general manager of TKLF HK for three years from 1 May 2025.

The term can be extended, subject to written agreement by both parties at least 30 days before the end of the initial period.

In the position, the general manager 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.

The company said remuneration will include a monthly salary alongside profit-sharing incentives linked to performance benchmarks.

These include targets tied to revenue and profit growth, higher gross margins, better inventory turnover, progress on store launches, new business development and cost management.

Tokyo Lifestyle said the structure is intended to strengthen its foothold in Hong Kong, accelerate the rollout of company-operated stores and enhance regional operational capacity.

The retailer also noted 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 centres and landmarks.