Shanghai Fashion Week: A Turning Point for China's Luxury Market?

Shanghai Fashion Week returned last week after a three-year hiatus due to the pandemic. Consumers remained cautious and some brands struggled with production delays, but there seemed to be a sense of optimism at the main venue Xintiandi…

Oude Waag's Fall-Winter 2023 show. Photo: WWD

According to Vogue Business, more than 70 designers showcased their products during the nine-day event, attracting consumers from China's top cities. The highlight of this fall-winter 2023 fashion week is the full return of shows and trade shows — important parts of which were canceled since the event went online in 2020. Ontimeshow, Mode, Showroom Shanghai, Tube Showroom, Not Showroom, and Autumn Showroom… are some of the exhibitions and conferences held over the past week.

Xiaolei Lv, deputy secretary general of Shanghai Fashion Week, told the media that the 2023 season marks a milestone in the strong recovery and restart of the entire Chinese fashion industry. For many brands, Shanghai Fashion Week has dispelled some of the pessimism that has built up around the Chinese market over the past year and reaffirmed the country's importance in the global fashion market.

Xintiandi - a bustling neighborhood in the heart of Shanghai, is the new "stop" for Shanghai Fashion Week 2023.

At a press conference, Liu Min, deputy director of the Shanghai Municipal Commission of Commerce, which oversees the Shanghai Fashion Week Committee, described the nine-day fashion event as not only the city’s lofty fashion ambition but also “an important platform to guide fashion and set trends for all kinds of consumer promotion activities throughout the year.” Xintiandi, a bustling neighborhood in downtown Shanghai, is the new “stop” for Shanghai Fashion Week 2023.

“Shanghai Fashion Week has helped our partners understand the steady recovery of the fashion industry, and their confidence in welcoming the recovery has been greatly improved,” said Yeli Gu, founder of Ontimeshow. With the full return of showroom format and the reopening of China’s borders, foreign designers and visitors have also returned with full confidence. “Some brands from France, Thailand and elsewhere have announced their return to Ontimeshow, returning to the Chinese market after a three-year absence,” Gu said.

Of the 59 brands exhibiting at Tube Showroom this season, 14 were accessories and seven were lifestyle brands—categories that have proven more resilient than last year. Christine Xu, co-designer of Chinese brand MTG, said many fashion week attendees came from cities outside Shanghai and Guangzhou, such as Chengdu, Chongqing, and Hunan.

Overall, attendance at the various trade shows and showrooms was high, reports showed. Organizers said more than 20,000 people visited Ontimeshow over the five days. Visitor numbers at Showroom Shanghai also exceeded expectations—a record high, despite lower trading volumes. “It can be seen that the overall situation is not as good as before 2020, but it is enough to make people satisfied,” said designer Christine Xu.

After last year’s shock, consumers remain cautious. Gu Gu, a manager at Changsha-based AVA, said that although sales peaked in January, consumers generally have less money to spend. “The budget they used to spend on one outfit is now spent on two or three,” Gu Gu said. “The revenge spending trend that exploded after the pandemic has now slowed down, and many people have a wait-and-see mentality.”

Faced with such a challenging market trend, designers have developed their business acumen, especially when it comes to pricing. “We use tiered pricing,” says Louis Shengtao Chen, who was shortlisted for this year’s LVMH Prize. “A certain percentage of individual products are in the mid-range price range, but at the same time, we have higher-priced items to cater to higher-end consumers.”

Chinese upstart Refuse Club, which debuted at the Tube Showroom this year, has taken a similar approach. According to Refuse Club designer Yuner Shao, budget-conscious buyers are reluctant to bet on new Chinese styles. So the brand has set a price range of 1,500 to 3,000 yuan (around £175 to £350) for the category.

Brands have also developed a deeper understanding of their positioning. Some, including Refuse Club, are targeting “hidden markets” – third-tier cities and new rural areas – to avoid fierce competition in cities like Jiangsu, Zhejiang and Shanghai. “In first-tier cities, consumers have more choices. Customer loyalty in second- and third-tier cities will be stronger,” said Nosense Official designer Shi Chang.

Chinese brand Chenpeng's Fall-Winter 2023 show.

“I hope that this comeback can fully convey the energy and ideas we have accumulated through the voice of Shanghai Fashion Week, and it is also an opportunity to rebuild interactions with the overseas industry,” said Xiaolei Lv, deputy secretary general of the Shanghai Fashion Week Committee. “In the future, young Chinese creators will grow even stronger, and Shanghai Fashion Week, as a platform, will embrace more technological innovations in a more open and inclusive way.”

Shanghai Fashion Week has also renewed its strategic partnership with Kering this year to prepare for the third Kering Generation Award with a focus on circularity in fashion. This collaboration will provide opportunities for sustainable businesses and brands to promote, showcase and source resources from the supply chain.

“Through our enhanced partnership with Shanghai Fashion Week, we hope to bring together a community of young people who advocate sustainable fashion, explore disruptive business models, and drive the profound and necessary transformation of the entire industry,” said Jinqing Cai, president of Kering Greater China.

Vneconomy