Research Report on the Upgrading Trend of China's Apparel Consumption and the High-End Breakthrough of Domestic Brands

Now I have collected sufficient data and will provide you with a systematic and comprehensive analysis report on the upgrading trend of China’s apparel consumption and the high-end development of domestic brands.

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Current China’s apparel consumption market is undergoing an in-depth transformation from “external expression” to “internal experience”, presenting a diversified pattern where basic styles and design sensibility coexist. Based on the latest industry data and brand dynamics, this report deeply analyzes the high-end development paths of domestic apparel brands amid the consumption upgrading trend, focuses on evaluating the strategic layout and market performance of representative brands such as Bosideng and Peacebird, and explores the key role of cultural integration strategies in the high-end breakthrough of brands.

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According to the research of EqualOcean Research Institute’s 2025 China New Consumption Development Insight and Brand Power List, China’s apparel consumption market is undergoing a fundamental transformation from “function-driven” to “value-driven” [1]. This transformation is reflected in the leap of three core dimensions:

Contemporary consumers are no longer satisfied with the basic functions of products, but pursue a balance between “emotional resonance” and “rational prudence”. Zhimeng Trend Research shows that in 2025, consumers’ attention to quality has surpassed cost-effectiveness, with 77.8% of consumers insisting on making the most of what they buy, and 74.4% of consumers valuing the sense of happiness in the consumption process [2]. In their inward exploration, consumers have bid farewell to extensive consumption pursuing “more and faster”, and shifted to the era of quality consumption featuring “fewer but better”.

The focus of brand competition has shifted from price wars to value wars. Data from iiMedia Research shows that although 85.79% of consumers still tend to choose domestic brands, the core driving factors for purchase have changed to “novelty of styles” and “technological innovation”, rather than just “Chinese-style design elements” [3]. This means that when “Guochao (Chinese Chic)” becomes a universally available traffic tool, its emotional added value is being greatly diluted.

Zhimeng Research has identified “meaning” and “value” as the key consumption trend keywords for 2026. Consumers are constantly asking “why I buy” and “what I get”, with their consumption focus more centered on “small world” and “self-pleasing experience” [2].

Consumers’ perception of “quality” has been redefined, forming a “four-tier pyramid” that guides brand value construction [2]:

Value Hierarchy	Consumer Attention	Core Connotation
Basic Quality	69.7%	High-quality materials as the primary element of quality, providing physical security
Functional Quality	47.1%	Accurate insight into pain points, providing clear and reliable solutions
Experiential Quality	80%+	Willing to pay a premium for exquisite craftsmanship, smooth use, and thoughtful design
Emotional Quality	35%	Resonant spiritual contract, fostering brand loyalty

This pyramid structure reveals the key steps that brands must take to achieve high-end positioning: merely having basic quality and functions is no longer sufficient to support a price premium; brands must establish differentiated advantages in terms of experiential details and emotional resonance.

Currently, China’s apparel market presents a “dual-track” pattern where basic styles and design sensibility coexist, and this trend is reflected in multiple segmented tracks:

: Represented by Uniqlo, it realizes the upgrading of design sensibility through the “basic style + designer collaboration” model. MUJI’s minimalist design fits consumers’ life philosophy of “simplicity by cutting out the clutter”. Such consumers pursue the versatility and practicality of single items, and are willing to pay a reasonable premium for high-quality basic styles.

: Designer brands and niche design brands are emerging to meet consumers’ strong demand for personalized expression. Brands such as Peacebird enhance their design discourse power through collaborations with international designers.

: The largest growth potential lies in the integration of high-quality basic styles and practical design sensibility. For example, Bosideng integrates fashion elements into functional down jackets, breaking the traditional perception that “down jackets = bulky and heavy”.

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As a typical representative of the high-end development of Chinese apparel brands, Bosideng’s strategic choices and execution effects are of great research value.

According to Bosideng’s 2025/26 Interim Report (as of September 30, 2025), the company achieved operating revenue of RMB 8.928 billion, a year-on-year increase of 1.4%; net profit attributable to shareholders was RMB 1.189 billion, a year-on-year increase of 5.28% [4]. For the 2024/25 fiscal year (as of March 31, 2025), the overall operating revenue reached RMB 25.902 billion, a year-on-year increase of 11.6%; net profit attributable to shareholders was RMB 3.514 billion, a year-on-year increase of 14.5% [5].

However, the growth rate has slowed significantly: the revenue growth rate of the main Bosideng brand dropped from 25.5% in the 2023 interim period and 19.4% in the 2024 interim period to 8.3% in the 2025 interim period; the growth rate of net profit attributable to shareholders slowed from 22.98% in the same period last year to 5.28% [4].

Bosideng adopts a “four-dimensional differentiation” strategy to accurately upgrade brand value through category division, crowd segmentation, market tier division, and store format differentiation:

Strategic Tier	Core Measures	Target Market
High-End Line	Collaborations with international designers, appearances at fashion weeks, technological innovation	Market above RMB 1,500
Main Brand	Quality upgrading, function enhancement	Market of RMB 1,000-2,000
Mass Line	Brands such as Snow Flying and Bingjie	Market of RMB 500-1,000
Channel Optimization	Layout in third- and fourth-tier cities, online-offline integration	Omnichannel coverage

As of the end of September 2025, among Bosideng’s over 3,500 regular retail stores nationwide, about 67% are located in third- and fourth-tier cities [5].

Bosideng builds competitive barriers through technological upgrading:

• -30℃ cold resistance technology
• Core performances such as constant temperature, water resistance, and antibacterial properties
• Eco-friendly zero-pressure down jackets won the German Red Dot Design Award
• CIRCULAR 3.0 products achieve the closed-loop goal of “from clothes to clothes”

In terms of quality control, Bosideng implements a strict three-level inspection system, and the product return and defect rate standard for the 2024/25 fiscal year was reduced to below 0.08%, with high-end products as low as 0.035% [5].

Although Bosideng’s market share in the high-end down jacket market above RMB 1,500 exceeds 30% [5], it faces core challenges as follows:

1. Disputes over Value Perception
   : Consumer doubts about a product with 86 grams of down priced at RMB 2,299 highlight the issue of “matching degree between value and price”. The Jiangsu Provincial Consumer Rights Protection Committee pointed out that the current national standard does not set a lower limit for down filling amount, and some brands may divert consumers’ attention from the actual down filling amount by emphasizing other parameters such as fill power and down content [5].

2. Cost Pressure
   : The price of domestic duck down (95% down content) has risen from RMB 304 per kilogram in 2020 to RMB 669 per kilogram in 2025, an increase of more than 120% [5].

3. Capital Market Performance
   : Since November 2025, Bosideng’s stock price has fallen from HK$5.29 per share to HK$4.43 per share, a decline of over 16%, with a market value of HK$52.3 billion [5].

Peacebird’s high-end development path features cultural integration as its core, opening up a new model for differentiated breakthroughs of domestic apparel brands.

Peacebird Women’s Wear officially launched its high-end line in August 2025, enhancing its high-end brand image through the following strategies [6]:

Strategy Dimension	Specific Measures	Effect Indicators
Design Integration	New York ready-to-wear language + Oriental aesthetics	Attract high-value customers born in the 1980s and 1990s
Celebrity Endorsement	Top celebrity promotion + themed fashion shows	Increase brand exposure
Designer Collaborations	Collaborative styles with partnered designers	Strengthen design discourse power
Sustainable Fashion	Eco-friendly materials + low-carbon production	Respond to consumption upgrading demands

According to the latest financial report data of Peacebird (603877.SS) [7]:

• Market Value: USD 787 million
• Current Stock Price: USD 16.70
• Price-to-Earnings Ratio (TTM): 43.81x
• Return on Equity (ROE): 4.02%
• Net Profit Margin: 2.76%

From the recent stock price performance, Peacebird has a 5-day increase of +12.46% and a 1-month increase of +8.51%, showing certain market recognition of its strategic adjustments. However, the relatively low net profit margin reflects that the high-end transformation has not yet been fully converted into profitability improvement.

Peacebird faces core challenges as follows:

1. Blurred Brand Positioning
   : Multi-brand strategy leads to resource dispersion
2. High-End Brand Perception
   : Has not yet established a stable high-end brand image in consumers’ minds
3. Channel Competition
   : Faces price competition pressure in third- and fourth-tier cities

The underwear and homewear track is shifting to dual driving forces of “technological sensory experience” and “emotional value”, forming a duel pattern between two camps: technology-focused brands and concept-focused brands [6]:

Technology-focused brands take functional innovation as their core competitiveness:

• Bananain: Through fabric innovation (air layer, modal fabric), version optimization (seamless stitching, ergonomic fit), and proposes the brand concept of “sensory-free wearing”
• Miiow: Endorsed by Xiao Zhan + functional technology, strengthens its professional image
• Core Strategies: Visualization of technical parameters, performance comparison experiments, authoritative certification endorsement

Concept-focused brands take emotional resonance as their core differentiation:

• Ubras: Focuses on “comfort aesthetics”, upgrades breast health public welfare projects, and opens the country’s first “comfort aesthetics collection store”, marking the deepening of the brand’s offline layout
• Yookeer: Emphasizes the concept of environmental sustainability, and connects with users emotionally
• Core Strategies: Value marketing, community operation, scenario-based content

According to research from CIC, Ubras has received multiple market position confirmations such as “No. 1 in online sales of Chinese women’s underwear for five consecutive years (based on 2020-2024 sales)”, “Pioneer of Chinese size-free underwear”, “Pioneer of Chinese down-like base layer clothing”, and “Pioneer of Chinese fabric down-like technology” [8].

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Cultural integration plays a key role in the “emotional quality” dimension of brand high-end development. When product functions tend to be homogeneous, cultural identity becomes the core anchor for brand differentiation.

Data from Xiaohongshu shows that the view count of the “New Chinese Style” topic exceeded 5.4 billion in 2024, with a total interaction volume of over 20 million [3]. Although the popularity declined slightly during the Spring Festival in 2025, Guochao consumption has shifted from a “traffic tool” to “value precipitation”.

Bosideng constructs a global cultural narrative through the following ways:

• Collaborations with international designers: Integrate Oriental aesthetic elements
• Appearances at fashion weeks: Display Chinese design at Paris and New York Fashion Weeks
• Sustainable development: ESG practices become the brand’s global “soft power”
• Achievements: Sold in 72 countries worldwide, breaking the stereotype of “Made in China = low price and low quality” [1]

The core innovation of Peacebird’s high-end line lies in integrating the tailoring techniques and structural logic of New York ready-to-wear language with the artistic conception, patterns, and colors of Oriental aesthetics [6]. The advantages of this “East-West integration” strategy are:

• Avoid the risk of niche positioning brought by “purely Oriental” styles
• Enhance brand tone with international design language
• Maintain Oriental cultural recognition to meet the demand for cultural confidence

Path Type	Representative Brands	Core Strategies	Effect Evaluation
Direct Cultural Symbols	Florasis, Forbidden City Lipstick	Direct application of traditional elements	Strong short-term exposure, prone to aesthetic fatigue in the long run
Design Language Integration	Peacebird, Bosideng	Integration of Eastern and Western design methodologies	Significant medium-term effects, requiring continuous innovation
Value Resonance	Ubras, Yookeer	Promotion of sustainable development concepts	Slow to take off but with high customer loyalty
Technological Cultural Output	Anta, Li-Ning	Professional sports technology + Chinese culture	Balance between professionalism and cultural attributes

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According to data from the National Bureau of Statistics, in the first half of 2025 [3]:

• Retail sales of clothing by above-scale units increased by 2.5% year-on-year (the growth rate accelerated by 1.7 percentage points compared to the same period in 2024)
• Operating revenue of above-scale enterprises in the clothing industry decreased by 1.43% year-on-year
• Total profit decreased by 12.92% year-on-year
• Loss ratio expanded to 30.67%

In contrast to the overall pressure on the apparel industry, the sports apparel track has become a “stabilizer” [3]:

• Market size of China’s sports footwear and apparel industry in 2025: RMB 598.9 billion
• Expected market size in 2030: RMB 896.3 billion
• CAGR predicted by iiMedia Research: 8.3%

High-end market (above RMB 1,500):

• International luxury brands: Moncler and Canada Goose continue to expand their market share
• Emerging domestic brands: Gaofan and Kailas are rising rapidly
• Gaofan seizes mid-to-high-end market share through boutique store layout
• Kailas’ 5000GT high-end down jackets sold out during Double 11 [5]

• Market Share: Exceeds 30% in the market above RMB 1,500
• Contribution Ratio of High-End Line: Still relatively low
• High-End Price Support: Mainly relies on domestic brand premium, material and marketing investment
• Core Issue: Has not yet been converted into stable brand identity recognition by consumers

Brand	Market Positioning	Competitive Advantages	Challenges
Snow Flying	Mass Market	Growth rate exceeds 20%	Operating revenue still declined by 3.2% in the first half of the fiscal year
Bingjie	Entry-Level Market	Brand renewal	Operating revenue decreased by 26% year-on-year
Yaya, Tanboer	Sinking Market	In-depth channel cultivation	Brand upgrading pressure

Domestic apparel brands are trapped in the dilemma of “marketing involution” [3]:

• 361 Degrees’ sales and distribution expenses in the first half of 2025 increased by 13.2% year-on-year
• Commission and service fees on e-commerce platforms increased by 45.3% year-on-year
• Li-Ning’s gross profit margin decreased by 0.4 percentage points (intensified competition in direct store promotions)
• Xtep’s gross profit margin decreased slightly by 0.1 percentage points (intensified discounts on e-commerce platforms)

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The success of brand high-end development requires the collaborative support of four core capabilities:

Capability Dimension	Importance Index	Core Points
Product Power	85%	Technological innovation, quality control, functional differentiation
Brand Power	70%	Brand perception, emotional connection, value recognition
Channel Power	65%	Channel quality, retail experience, digitalization
Innovation Capability	78%	Design innovation, material innovation, model innovation

Success Factor	Weight	Explanation
Technological Innovation	30%	Functional differentiation, establishment of technological barriers
Cultural Confidence	25%	Oriental aesthetics, formation of emotional resonance
Design Aesthetics	20%	International vision, integrated innovation
Quality Upgrading	15%	Supply chain control, quality assurance
Global Channels	5%	International layout, enhancement of brand momentum
Consumer Insight	5%	Accurate demand grasp, continuous innovation

Based on the above analysis, domestic apparel brands should focus on the following directions for high-end breakthroughs:

• High-End Line: Focus on technological innovation and cultural integration to establish price support
• Mass Line: Maintain scale and cash flow to support brand investment

• Material Upgrading: Eco-friendly, sustainable, high-performance
• Function Upgrading: Scenario-based, multi-season, multi-functional
• Design Upgrading: Integration of international vision and Oriental aesthetics
• Experience Upgrading: Retail scenarios, service experience, emotional connection

• Avoid over-reliance on marketing, establish long-term brand value
• Consumer education to build high-end perception
• Community operation to strengthen customer loyalty

• Internationalization of design teams
• Supply chain quality control
• Improvement of digital capabilities

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1. Clear Consumption Upgrading Trend
   : China’s apparel consumption is shifting from material satisfaction to triple demands of “comfort + design sensibility + sustainability”, with consumers’ perception evolving from “material satisfaction” to “dual demands of emotion and rationality”.

2. Intensified Market Pattern Differentiation
   : Amid the diversified pattern where basic styles and design sensibility coexist, sports apparel grows against the trend, traditional apparel faces pressure, and brand differentiation is obvious.

3. Differentiated High-End Paths
   : Bosideng breaks through with a technology + globalization path, while Peacebird explores with a cultural integration path, representing different directions of high-end development for domestic brands.

4. Cultural Integration is a Key Variable
   : Against the background of homogeneous product functions, cultural identity becomes the core anchor for brand differentiation, but it is necessary to avoid “Guochao” being reduced to superficial symbols.

5. Coexistence of Challenges and Opportunities
   : Cost pressure, slowing growth, and brand trust crises are the main current challenges, but the trends of consumption upgrading and the rise of domestic brands also provide long-term growth space for high-quality brands.

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• The apparel industry will still face pressure, and brand differentiation will continue
• Competition in high-end market will be intensified, and the matching degree between price and value will become a key issue
• The sports outdoor track will maintain growth resilience

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• The high-end development of domestic brands will enter a “value verification period”, and brands that cannot establish stable brand perception will be eliminated
• Cultural integration will deepen from “symbol application” to “methodology integration”
• Technological innovation will continue to make breakthroughs in dimensions such as warmth retention, breathability, and environmental protection

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• Chinese apparel brands are expected to occupy a place in the global high-end market
• Oriental aesthetics will become an important discourse power in global fashion
• “Created in China” will replace “Made in China” as the core asset of brands

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[1] EqualOcean Research Institute *2025 China New…