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Home News China’s Fashion Industry on the Rise Amid Economic Recovery and Policy Support

China’s Fashion Industry on the Rise Amid Economic Recovery and Policy Support

by Barbara

Boosted by a series of financial policy measures from the People’s Bank of China, the State Financial Regulatory Administration, and the China Securities Regulatory Commission (CSRC) in late September, China’s stock market has shown significant recovery in September and October. The establishment of the Securities, Funds and Insurance Companies Swap Facility (SFISF) has also played a crucial role, leading to record gains across various indices.

This positive shift in the market is transitioning from sporadic surges to a “slow bull” scenario, fueled by supportive policies, economic recovery, and technological advancements. Notably, while A-share apparel brands experienced negative returns from January to August, some companies like Bosideng and Semir reported double-digit net profit growth in the third quarter. The manufacturing sector outperformed apparel brands, with notable increases in overseas exports during this period.

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Cumulative online retail sales of clothing in China grew by 4.1% year-on-year from January to September, indicating a recovery in discretionary consumption. Ping An Securities highlights that companies in apparel manufacturing and exports may find new opportunities as the economy continues to stabilize. Exporters of clothing and home furnishings are expected to benefit, and apparel brands may experience market increases following asset revaluations.

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The thriving capital markets are coinciding with significant fashion events, such as the recent Shanghai and Shenzhen fashion weeks, which have bolstered market confidence and showcased the determination of the Chinese fashion industry to connect with global markets.

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At Shanghai Fashion Week, iconic designer Vivienne Westwood’s spring 2025 collection generated buzz, with tickets for the finale selling at premium prices. Moncler also made a splash with its “City of Genius” showcase at the former World Expo site, emphasizing cultural fusion. Shenzhen Fashion Week emphasized professionalism and globalization, featuring brand shows, exhibitions, and a digital ordering platform that facilitated real-time order placements.

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The upcoming Global Apparel Conference in Humen, Dongguan, scheduled for November 20-22, aims to foster dialogue within the global fashion industry. This year, France will be the guest of honor, with renowned designers expected to discuss upcoming trends.

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The success of last year’s Global Apparel Conference has already stimulated growth in Humen’s apparel industry. Local officials report that among Dongguan’s 12,000 textile, apparel, and footwear manufacturers, around 1,200 large-scale enterprises achieved significant industrial output, reflecting a nearly 10% year-over-year increase.

China’s fashion industry is increasingly asserting its global presence, as evidenced by the activities from Shanghai to Shenzhen and now Humen. Sun Ruizhe, president of the China National Textile and Apparel Council (CNTAC), emphasized that China’s textile and apparel sector remains a pillar of the global supply chain, dedicated to integrating into global development.

Strategic top-level policies have spurred a notable stock market surge, attracting speculative capital that fuels research and development as well as market investments. The robust secondary market not only stimulates consumer spending but also enhances market enthusiasm. Meanwhile, the industry is actively welcoming foreign investments and collaborations with global brands to explore new growth opportunities.

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