China's fashion consumption report unveils trillion-yuan market

China's market is expected to reach two to three trillion yuan ($278.7 billion) in 2025, according to the China Fashion Consumption Development Report unveiled during the 2025 China Annual Trends Summit on Thursday in Shanghai.

Co-compiled by the fashion research institute of China Cultural Media Group, Bain & Company, and Bilibili, the report highlights that the "life experiences" and "apparel & accessories" sectors account for nearly 80 percent of the fashion consumption market, marking a significant shift from material-oriented to cultural experience-driven consumption.

According to the report, life experience-related consumption occupies 40 to 50 percent of the total, with Chinese-style healthy dining and travel experiences contributing approximately 1 trillion yuan. The apparel and accessories sector accounts for 30 to 40 percent, among which brand clothing and jewelry embodying Oriental aesthetics account for 600 to 700 billion yuan. Cultural and entertainment activities have emerged as a new growth point, totaling 10 to 15 percent of the market, with locally themed cultural creative IP peripherals alone reaching 200 billion yuan.

"Based on over 1,600 consumer questionnaires, in-depth interviews and market research, the report analyzes fashion perceptions, preferences and habits across different age groups, cities and regions," explained Xu Haijun, chairman of China Cultural Media Group. "It reveals that 'Chinese fashion' is increasingly defined by its deep roots in traditional culture and national identity, while integrating modern technology and societal trends to create unique aesthetic value and fashion influence."

The report emphasizes that consumer behavior varies across age groups. As digital natives, over 56 percent of Gen Z consumers prioritize "self-pleasure", showing strong preferences for emotionally driven sectors such as knowledge payment and virtual fashion, with higher spending on sustainable products and trendy toys.

Young adults aged 26 to 35 view fashion as a lifestyle expression, with over 50 percent seeking "emotional satisfaction" through categories like health therapy and beauty care. Consumers aged between 36 to 45, however, focus on product quality and cultural connotations, with 59 percent favoring items with cultural added value and 74 percent engaging in traditional apparel consumption while embracing smart home devices and consumer electronics.

The report also highlights several transformative industry trends. Domestic brands are challenging overseas dominance in premium sectors, such as Laopu Gold, which leveraged intangible cultural heritage techniques like engraving to achieve 9.8 billion yuan in sales in 2024, breaking the "affordable substitute" stereotype. Intangible heritage has been commercialized innovatively, as seen in Quanzhou's "hairpin flower economy", which drove 1.8 billion yuan in tourism revenue and generated over 1 billion views on Douyin.

Borderland cultures from Xinjiang Uygur autonomous region, Xizang autonomous region, and Inner Mongolia are gaining global attention. Erdos Group, for instance, integrated Mongolian elements into international designs, achieving 28 billion yuan in revenue in 2024 and entering Paris' Galeries Lafayette.

Chinese fashion brands are also accelerating global expansion: Pop Mart's overseas revenue reached 5.1 billion yuan in 2024, a 375 percent year-on-year increase, and its co-branded "Nezha 2" blind boxes sold out instantly, boosting its market value to over 140 billion Hong Kong dollars and demonstrating the global potential of national trend IPs.

As part of the 2025 China Annual Trends Summit, a fashion night was held on the same day at the Shanghai Exhibition Center honoring outstanding contributors to the fashion industry in addition to a fashion show showcasing Chinese aesthetic.

In addition, a venture capital conference attracted dozens of brand representatives from sectors including culture-tourism, beauty, real estate, apparel, trendy IPs, maternity-baby products, pet care, FMCG and automotive, alongside over 150 investors from financial institutions, on the following day.