Key Insights
Essential data points from our research
China's apparel market revenue was projected to reach approximately US$319 billion in 2023
The Chinese fashion market is expected to grow annually by 4.41% (CAGR 2023-2027)
China accounts for approximately one-fifth of the global apparel market revenue
China is the world’s largest e-commerce market for fashion, with over 50% of apparel sales happening online
Livestreaming e-commerce for fashion in China generated over $60 billion in yearly sales as of 2022
Tmall generates approximately 45% of the total B2C market share for fashion in China
Gen Z consumers in China account for 15% of the population but 25% of expenditure on fashion brands
85% of Chinese consumers prefer brands that incorporate 'Guochao' (national trend/cultural) elements
Over 60% of Chinese Millennials are willing to pay a premium for sustainable fashion products
China produces nearly 65% of the world's clothing
China exported approximately $175 billion worth of apparel in 2022
The textile industry in China employs over 20 million people directly
China is set to account for 25% of the global luxury market by 2025
Domestic sportswear giant Anta Sports surpassed Adidas in China revenue for the first time in 2021
The second-hand luxury market in China grew to $8 billion in 2020 but remains only 5% of the total luxury market
Consumer Behavior & Demographics
- Gen Z consumers in China account for 15% of the population but 25% of expenditure on fashion brands
- 85% of Chinese consumers prefer brands that incorporate 'Guochao' (national trend/cultural) elements
- Over 60% of Chinese Millennials are willing to pay a premium for sustainable fashion products
- The average annual spending on fashion by high-net-worth individuals in China exceeds 100,000 RMB
- 40% of Chinese consumers cite "fabric quality" as the most important factor when purchasing apparel, outranking "brand name"
- Male consumers in China are increasing their fashion spending at a rate 2% faster than female consumers as of 2022
- 77% of Chinese fashion consumers consider "social badging" (showing status) as a key motivation for luxury purchases
- Consumers in lower-tier cities (Tier 3 and below) make up nearly 60% of the active buyers on discount fashion app Pinduoduo
- The 'Silver Economy' (consumers over 60) increased their spending on fashion and accessories by 21% in 2022
- 52% of Chinese consumers will boycott a fashion brand for perceived political missteps or cultural insensitivity
- The average Chinese consumer buys approximately 30 new garments per year
- 38% of Chinese Gen Z consumers have purchased a 'blind box' fashion item (mystery box)
- More than 50% of Chinese parents prefer buying domestic brands for children's clothing due to perceived safety improvements
- Single-person households in China spend 15% more on fashion per capita than multi-person households
- 70% of female consumers in China consider 'body-positivity' marketing as a positive influence on their purchasing decision
- Chinese consumers return approximately 25% of apparel purchased online due to sizing issues
- 45% of Chinese luxury shoppers are under the age of 35
- Among Chinese gym-goers, 65% purchase distinct "activewear" outfits for working out rather than wearing casual clothes
- 90% of Chinese consumers research fashion products online before buying offline (ROPO effect)
- The preference for 'Gender-neutral' fashion has grown by 300% in search volume on Tmall between 2020 and 2022
Interpretation
Think of China's fashion market as a fast-moving, culturally driven marketplace where Gen Z consumers, though only 15 percent of the population, account for 25 percent of brand spending, shoppers favor Guochao and fabric quality over mere logos, millennials and the wealthy will pay premiums for sustainability and exclusivity, men and single-person households are spending more, lower-tier cities and the over‑60s are rapidly expanding demand, social badging fuels luxury purchases even as online research dominates and sizing-related returns bite, and any brand that ignores political sensitivity, child-safety perceptions, body positivity or the surging appetite for gender-neutral and blind-box fashion does so at its commercial peril.
E-commerce & Digital Trends
- China is the world’s largest e-commerce market for fashion, with over 50% of apparel sales happening online
- Livestreaming e-commerce for fashion in China generated over $60 billion in yearly sales as of 2022
- Tmall generates approximately 45% of the total B2C market share for fashion in China
- The return rate for apparel bought via livestreaming in China can reach up to 50%, significantly higher than traditional e-commerce
- Douyin (China’s TikTok) reported a 300% year-on-year increase in fashion merchandise sales in 2022
- Over 80% of Chinese fashion consumers use mobile phones as their primary device for purchasing clothes
- The 'SHEIN' app, founded in China, was the most downloaded shopping app globally in 2022, driven by Chinese supply chains
- WeChat Mini Programs facilitated over 2.5 billion RMB in fashion transaction volume daily in 2022
- Nearly 70% of luxury fashion purchases in China are influenced by digital touchpoints
- Little Red Book (Xiaohongshu) has over 200 million monthly active users, 70% of whom specifically browse for fashion and beauty inspiration
- JD.com’s fashion and lifestyle division saw a 16% revenue increase in Q4 2022
- The penetration rate of AI virtual anchors in fashion livestreaming reached 10% on major platforms in 2023
- Pinduoduo’s C2M (Consumer-to-Manufacturer) model reduced fashion production lead times to 5 days for its merchants
- During the Double 11 festival in 2022, fashion was the number one category by GMV on Tmall
- Social commerce (buying directly through social media) accounts for 14.3% of total retail e-commerce sales in China, heavily weighted toward fashion
- Around 35% of Chinese consumers admit to purchasing a fashion item solely because a KOL (Key Opinion Leader) recommended it
- VIPShop, a leading discount fashion retailer, reported 103 billion RMB in net revenues for 2022
- The average time spent on fashion livestreams per user in China is approximately 25 minutes per session
- By 2025, it is estimated that 60% of all fashion retail in China will be transacted digitally
- Taobao Live's conversion rate for fashion apparel is approximately 8 times higher than that of traditional text-and-image product pages
Interpretation
China’s fashion market has become a mobile-first, social and livestream-fueled powerhouse, with over half of apparel sales occurring online, livestreaming generating more than $60 billion annually even as returns can reach 50 percent, platforms from Tmall and Douyin to Little Red Book and WeChat mini programs delivering outsized conversions and influencer-driven buying, and rapid C2M production pushing digital penetration toward an estimated 60 percent by 2025, where clicks buy as fast as factories can stitch and brands must balance explosive growth with new operational and reputational risks.
Luxury, Sportswear & Sustainability
- China is set to account for 25% of the global luxury market by 2025
- Domestic sportswear giant Anta Sports surpassed Adidas in China revenue for the first time in 2021
- The second-hand luxury market in China grew to $8 billion in 2020 but remains only 5% of the total luxury market
- Local brand Li-Ning reported a net profit rise of 136% in 2021, driven by 'Guochao' trends
- The market for sustainable footwear in China is expected to grow at a CAGR of 7.5% through 2027
- 80% of Chinese luxury consumers use "sustainability" as a tag to search for products, though conversion remains lower
- Duty-free shopping in Hainan accounted for 13% of the Chinese luxury market in 2021
- Lululemon’s China revenue grew by 30% in 2022, largely driven by the premium yoga wear segment
- High-end streetwear grew 5 times faster than the general apparel market in China in 2021
- Hermes sells more scarves in China than in any other single country market
- The outdoor gear and apparel market (camping/skiing) in China grew by 18% in 2022
- Only 21% of Chinese consumers recognize specific sustainable fashion logos (like B-Corp)
- Chanel increased prices in China by 15% in 2022, yet demand remained inelastic
- Bosideng, a domestic down jacket brand, saw its premium line sales increase 22% in 2022, challenging Moncler
- The ski apparel market in China expanded by 25% leading up to and following the 2022 Beijing Olympics
- Jewelry brand Chow Tai Fook has over 7,000 points of sale in China, dominating the "mass luxury" segment
- Sneaker resale app Poizon (Dewu) has an estimated GMV of over 100 billion RMB, focusing on streetwear
- 72% of Chinese luxury consumers say they would pay more for a brand that supports charitable causes in China
- Rental fashion (renting luxury clothes) market penetration in China is less than 1%, significantly lower than the US
- Louis Vuitton is the most recognized luxury fashion brand in China, with 96% brand awareness
Interpretation
China has become the world’s luxury proving ground where Louis Vuitton and Hermes can raise prices without flinching while domestic challengers from Anta to Li‑Ning and Bosideng sprint ahead, high‑end streetwear and resale platforms like Poizon rocket growth, sport and outdoor categories surged around the Olympics, Hainan duty‑free and mass luxury chains like Chow Tai Fook anchor broad demand, and paradoxes abound as sustainability tags drive searches but conversions and logo recognition lag, with second‑hand and rental still tiny even as China is set to account for a quarter of the global luxury market by 2025.
Manufacturing & Supply Chain
- China produces nearly 65% of the world's clothing
- China exported approximately $175 billion worth of apparel in 2022
- The textile industry in China employs over 20 million people directly
- Guangdong province alone accounts for roughly 25% of China's total garment production
- Chemical fiber production in China reached 67 million metric tons in 2022, the highest globally
- Labor costs in China's textile sector have risen by an average of 8% annually over the last decade
- China accounts for over 70% of the world's production of man-made fibers (polyester, etc.)
- The adoption of automated sewing robots in Chinese factories increased by 20% in 2022
- Roughly 30% of global cotton production comes from China
- Smart manufacturing utilization rates in China's textile industry reached 53% in 2021
- China's "fast fashion" supply chain can move from design to final product in as little as 7 days
- There are over 100,000 garment manufacturers currently operating in China
- Textile exports from Xinjiang to the EU rose by 34% in Q1 2022 despite sanctions debates
- Digital printing technology usage in Chinese textile mills is growing at 20% annually
- China supplies 55% of the fabric used by textile manufacturers in Vietnam and Cambodia
- The inventory turnover days for efficient Chinese fashion manufacturers average 30-40 days
- Approximately 15% of China's textile capacity has relocated to Southeast Asia (near-shoring) in the last 5 years
- Wholesale markets like the Guangzhou Baima Clothing Market facilitate over 5 billion RMB in transactions annually
- Recycled textile production in China has only reached a utilization rate of roughly 20%
- The cost of dyeing fabrics in China increased by 15% in 2021 due to stricter environmental regulations
Interpretation
China still runs the world's wardrobe, producing nearly 65% of global clothing, exporting roughly $175 billion in 2022 and directly employing over 20 million people, but rising labor and dyeing costs, modest recycling rates, regional concentration and geopolitical scrutiny, growing automation and smart manufacturing, and a partial shift of capacity to Southeast Asia mean the industry now has to juggle unprecedented scale, a seven day design to product tempo and the hard business of becoming sustainable.
Market Size & Economic Impact
- China's apparel market revenue was projected to reach approximately US$319 billion in 2023
- The Chinese fashion market is expected to grow annually by 4.41% (CAGR 2023-2027)
- China accounts for approximately one-fifth of the global apparel market revenue
- In 2022, the volume of the Apparel market in China was projected to amount to 84.7 billion pieces
- The average volume per person in the Chinese apparel market is expected to amount to 59.9 pieces in 2023
- Women's apparel constitutes the largest segment of the Chinese fashion market holding a volume of US$165 billion in 2023
- China’s GDP growth creates a correlation where a 1% rise in GDP typically leads to a 1.3% rise in fashion retail sales
- The children's wear market in China was valued at approximately 266 billion yuan in 2021
- The Chinese footwear market is projected to generate a revenue of US$80 billion in 2023
- Men's apparel in China is expected to reach a market volume of US$90 billion by 2024
- The dominance of domestic brands in China's top 20 fashion turnover rankings increased from 15% in 2011 to over 30% in 2021
- Cross-border e-commerce fashion exports from China grew by over 20% in 2022 despite global supply chain issues
- China’s sportswear market is the second largest in the world behind the US, valued at over $48 billion
- The compound annual growth rate of the intimate wear market in China is approximately 9%
- China's fashion accessories market reached a valuation of 500 billion RMB in 2021
- The sheer volume of the 'Hanfu' (traditional clothing) market in China exceeded 10 billion yuan in 2021
- Sales of gold jewelry in China, often linked to fashion trends, rose by over 12% year-on-year in 2023
- Tier 1 cities in China account for roughly 20% of total national fashion retail sales despite having a small fraction of the population
- Foreign brands experienced a collective market share drop of 4% in China's apparel sector between 2020 and 2022
- The gross merchandise value (GMV) of China's fashion industry represented 3% of the national GDP in 2022
Interpretation
China’s fashion industry is a colossal and fast-evolving market, showing that fashion is not just about looks but also about economic muscle, generating about US$319 billion in 2023 and roughly one-fifth of global apparel revenue, with almost 60 garments per person, a US$165 billion women’s segment and sizable niches including about US$80 billion in footwear, roughly US$90 billion in men’s apparel by 2024, more than US$48 billion in sportswear, 500 billion renminbi in accessories, 266 billion yuan in children’s wear, over 10 billion yuan in Hanfu, intimate wear growing at about 9 percent annually and gold jewelry sales up over 12 percent in 2023, while domestic brands have markedly increased their presence as foreign brands ceded ground, cross border e-commerce exports rose over 20 percent in 2022, Tier 1 cities account for about 20 percent of retail despite their small population share, the sector’s gross merchandise value was around 3 percent of GDP in 2022, and the industry remains tightly linked to macro trends since a one percent GDP rise typically lifts fashion retail by about 1.3 percent.
References
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