Hype products, collaborations and outerwear: What chinese consumers want

Chinese consumers have been faced with an unstable economy and ever-new challenges since the pandemic. This is also reflected in their shopping behaviour.

Although uncertainties such as the trade dispute with the US and the real estate crisis are putting additional strain on consumers and dampening consumer sentiment, private households seem to be increasingly coming to terms with the new reality. This is also reflected in the economic development of the People's Republic. It recorded gross domestic product (GDP) growth of 5.3 percent in the first half of the year.

But what does the adjusted purchasing behaviour mean for China's fashion market? Insiders offer insights.

Consumers adapt

Laura Darmon, chief buying officer of the trendy Chinese luxury fashion retailer Eng, has observed changes in consumer behaviour in both the mid-price segment and the luxury market. "Customers are more reserved and tend to think twice before making a purchase."

The Chinese remain cautious about their financial prospects. They are worried about their jobs and the loss of value of their properties. In comparison, average household income is also growing more slowly – 1.4 percent in 2025 compared to 2.5 percent in 2024.

Consumption is expected to grow similarly cautiously in 2025 as in the previous year, according to a consumer survey by the consulting firm McKinsey, published in May. According to the survey, a growth rate of 2.3 percent is expected this year. This compares to 2.4 percent in 2024.

In this volatile overall situation, consumers are adjusting their spending behaviour, according to the study. Purchasing decisions are increasingly based on factors such as one's own assets rather than confidence in the future. In particular, affluent urban residents are said to strive for a higher quality of life and greater personal fulfilment, even if this means using their own savings to do so.

Overall, people living in Chinese cities would spend more money than people in rural areas. However, there has also been an increase in spending in rural areas, said Chen Dapeng, president of the China International Fashion Fair (CHIC), at a press conference earlier this month during the fashion fair. Due to the rise in online shopping, which now accounts for more than half of all purchases, it is sometimes difficult to classify where the orders come from with the available data.

In the first half of 2025, the fashion retail trade recorded a slight increase of 3.1 percent year-on-year, according to data from the China Automotive Technology and Research Center evaluated by McKinsey. The consulting firm published this as part of a study in August. Online retail, meanwhile, received a boost in the household appliances, sports and outdoor categories from the 618 Shopping Festival. This is an e-commerce event that took place around 18 June. According to market research company Syntun, it saw strong gross merchandise value (GMV) growth of 15.2 percent.

What ends up in the shopping basket?

Darmon, who in addition to her role as a buyer also founded the consulting firm Envison, which helps brands position themselves in the Chinese market, believes that "hype products" and collaborations will continue to sell well. However, this is despite sales slowing "due to the economic climate and market saturation." It is important that the price remains accessible to consumers. Overall, consumers would "pay more attention to price, shop less frequently and approach purchases with greater caution".

Clothing and sportswear are not among the top priorities – such as education, health or travel – according to the McKinsey survey. However, they do not fall into the risk categories where a decline in spending is forecast.

In the clothing category – excluding sportswear – 41 percent of respondents said their spending and buying behaviour would not change. Almost a quarter plan to spend more, while 16 percent said their spending would remain the same but their behaviour would change. In contrast, 18 percent said they wanted to reduce their spending in this area. On average, this area accounts for only 6 percent of net expenditure. Expenditure growth of 0.9 percent is expected for 2025, compared to 2.1 percent in 2024.

A similar distribution is found in the sportswear sector. However, the sector accounts for 8 percent of net expenditure. While forecast expenditure growth in 2024 was on par with clothing in percentage terms, expectations for 2025 are slightly higher at 1.1 percent than in the other category.

Chen, who is also president of the China National Garment Association, also sees categories such as sportswear and outdoor performing better than other segments. Although overall market demand is rather low, volume remains relatively constant.

Being active is the new luxury

The Chinese luxury market felt the effects of restrained consumer sentiment due to economic uncertainties. Sales are estimated to have fallen by 18 to 20 percent in 2024, according to the "2024 China Luxury Goods Market" study by management consultancy Bain & Company. Consumers are behaving more rationally with regard to luxury spending and are showing restraint in purchasing due to frequent price increases with limited product innovation. Instead, they are spending more money on travel and outdoor activities.

"The outdoor trend 'Gorpcore' is currently enjoying great popularity, with sport at its heart," summarises Darmon. "Climbing, cycling and tennis apparel are seeing increasing demand."

The success of Swiss sporting goods company On in the Chinese market – revenues in the Asia-Pacific region more than doubled in the second quarter – and the "almost always full" flagship store of outerwear brand Arc'teryx also illustrate the strong demand, according to the buyer. In addition to sportswear, sales of products such as sports equipment and accessories are also benefiting.

One reason why the Gorpcore trend is much bigger in China and lasts longer than in Europe, according to Darmon, became apparent after the last Olympic Games, when luxury brands also promoted their products through collaborations with Chinese athletes. "National pride, combined with social media dynamics, contributes to this trend lasting much longer in China than in Europe."

CHIC president Dapeng also sees this connection to their homeland in the style of younger Chinese people. They are increasingly wearing fashion inspired by traditional garments and presenting them "with self-confidence". This is a tendency that goes hand in hand with global developments towards a more conservative society.

While outdoor pursuits and their own roots are encouraging Chinese consumers to spend, luxury fashion and lifestyle products are having to record declines of between 15 and 20 percent on the Chinese mainland. However, due to its seasonality, the segment did not experience as sharp a decline as the jewellery (-25 to -30 percent) and watches (-28 to -33 percent) product groups. Leather goods were in between, with a decline of 20 to 25 percent.

This article was translated to English using an AI tool.

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