China’s fashion industry: Growth returns, but consumers are more selective

China’s fashion market recorded a recovery in 2025 with retail sales reaching RMB 1.52 trillion, yet the sector is undergoing a structural shift toward more selective and value-conscious consumption. A significant majority of consumers now prioritize functional fabric parameters over visual aesthetics, driving the success of performance-driven utility brands and technical outdoor apparel. This evolution, coupled with a robust 15% to 20% growth in the secondhand luxury market, signals a maturing landscape where material quality and long-term product utility are becoming the primary drivers of purchase decisions.

In 2025, China's retail sales for apparel, footwear, and textiles grew by 3.2% year-on-year to RMB 1.52 trillion, reflecting a moderate recovery for the world's largest textile exporter. However, the nature of this growth has changed significantly as 72.2% of buyers now prioritize specific fabric parameters over visual style, which was a primary focus for only 38.5% of respondents in a recent survey of 2,000 consumers. This hyper-rational, material-first mindset has fueled the rapid ascent of technical brands like Hoka and On Running, as well as specialized sun-protective clothing, making functional utility a baseline expectation for the industry rather than a niche feature.

The personal luxury goods market in mainland China contracted by 3% to 5% in 2025, representing a stabilization compared to the sharp 17% to 19% correction seen in 2024. While top-tier wealth segments remain resilient, aspirational shoppers are moving toward a minimalist lifestyle and long-termism, demanding proof of craftsmanship and utility before committing to high-value purchases. This shift has directly benefited the secondhand luxury market, which grew 15% to 20% to reach approximately USD 30 billion. Resale platforms such as Xianyu and Zhuanzhuan are professionalizing the sector through offline warehouse-style retail and visible authentication, while social media interest remains high with the #secondhandluxury hashtag reaching over 3 billion views on RedNote.

Digital sales growth has decelerated to marginal levels, with online apparel sales growing just 1.9% in 2025, prompting brands to adopt a fragmented strategy across a specialized digital matrix. In this ecosystem, RedNote drives product discovery, Douyin captures interest through livestreaming, and Tmall/Taobao handles transactional conversion. Physical retail is also evolving, with brands like ANTA, Li-Ning, and Bosideng utilizing pop-up stores and experiential flagships as content generation hubs to capture digital members rather than focusing solely on immediate transactions. Furthermore, domestic labels such as ICICLE, Songmont, and Uma Wang are moving beyond basic traditional motifs to build cultural confidence through sophisticated design-led silhouettes and material craftsmanship.

Sustainability has become a central industry pillar, driven by China’s 3060 dual carbon goals aimed at peaking emissions by 2030 and reaching neutrality by 2060. As a global manufacturing hub, these policy shifts are expected to reshape fashion supply chains by mandating lower energy consumption, cleaner materials, and more transparent supplier management. These environmental mandates, combined with a focus on better inventory control and material durability, represent a long-term structural optimization that moves the industry away from sheer expansion toward sustainable maturation. This shift ensures that China remains an indispensable pillar of the global fashion economy while adapting to a more cautious and quality-driven consumer base.