Singapore (11 July 2024) – Despite facing global scrutiny, Chinese fast fashion brands are thriving, with projections indicating a market valuation of $1.4 billion by 2028, a significant increase from $1 billion in 2022. According to a report by Canvas8, a global strategic insights practice specializing in cultural and behavioural trends, the success of these brands is driven by various factors, including national pride and cultural identity.
Authored by Jelou Galang, the report, titled ‘Why are Chinese shoppers progressing to homegrown fast fashion?’, features insights from Xiaojing Huang, a renowned design trend expert and strategy director of YANG DESIGN, and Ambra Schillirò, the co-founder of China Fashion Group. The report highlights the increasing allure of homegrown brands among Chinese consumers.
In May 2024, the season finale of Saturday Night Live humorously spotlighted the controversies surrounding Chinese fast fashion through a satirical ad featuring ‘Xiemu,’ a playful nod to Shein and Temu. The e-commerce fashion market in China is expected to reach $236.8 billion by the end of 2024, with women’s apparel leading the charge at $328.4 billion.
Shein dominated search rankings as the most Googled global fashion brand in 2022, surpassing industry giants like Nike and Zara. International brands like H&M and Zara are struggling to compete with local powerhouses on platforms such as Alibaba’s Tmall and Taobao. The rise of brands like Metersbonwe, Peacebird, and Youngor has led to strategic exits from global players, including Urban Outfitters and Old Navy, with Gap selling its China operations to focus on untapped potential elsewhere.
Cultural and geopolitical dynamics significantly influence consumer preferences. Boycotts and market exclusions following brand stances on Xinjiang cotton have underscored China’s importance as the world’s second-largest e-commerce market, with an online shopping population nearing 915 million as of December 2023. A strong preference for domestic brands has emerged, driven by the ‘guochao’ movement, which reflects national pride and cultural revival.
Ambra Schillirò notes, “The rise of guochao goes beyond fashion; it signifies a broader embrace of national identity and cultural revival, influencing consumer choices across sectors.” This cultural confidence is evident in the popularity of the New Chinese Style, blending traditional elements with contemporary designs, appealing to younger generations seeking both individuality and cultural pride.
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Xiaojing Huang explains, “From Hanfu to modern interpretations of Chinese aesthetics, there’s a growing demand for products that reflect cultural heritage in everyday wear.” This shift democratizes cultural expression, resonating with Gen Z’s desire for authenticity and sustainability.
Affordability, quality, and cultural relevance drive consumer preferences towards local brands. Huang emphasizes the appeal of “lower price substitutes” offered by Chinese fast fashion, coupled with agile production cycles that respond swiftly to market trends. This strategy has enabled local brands to outpace international competitors through digital platforms like Douyin and Xiaohongshu, where influencers have significant sway.
Schillirò underscores the importance of digital engagement and community-building in China’s retail landscape. “Influencers and key opinion consumers (KOCs) play a crucial role in shaping consumer perceptions and driving sales,” she notes, highlighting Xiaohongshu’s thriving ecosystem where user-generated content and authentic reviews drive purchasing decisions.
Nick Morris, Managing Director of Canvas8, advises, “Brands navigating China’s fast fashion landscape must embrace cultural sensitivity, transparency, and immersive digital experiences to foster lasting connections with consumers.” Understanding these dynamics is crucial for brands aiming to thrive in this dynamic market.
For more detailed insights, the report ‘Why are Chinese shoppers progressing to homegrown fast fashion?’ is available for download for a limited 2-week period.
