The New Rules for Independent Brands Selling in China

China’s fashion market remains fertile ground for independent brands looking to expand overseas. But as the market has grown and globalized, with more Western brands moving in to stake a claim and local brands exerting more dominance, competition is rife and cracking it is more complex than ever.

“Chinese consumers today are highly informed and have access to brands from all over the world, so being international is no longer enough,” says Tasha Liu, founder of Labelhood, a pioneering retail platform and incubator for emerging brands entering the Chinese market. “What matters is whether a brand has a clear point of view, communicates consistently, and is willing to build genuine relationships over time.”

Multi-brand boutiques have become more significant in China, growing from a handful in major cities like Shanghai, Beijing, and Chengdu to having a more consistent presence across the country. They have also shifted from stocking mainly Chinese brands to a more diverse global mix, with concept stores like Dongliang and B1ock functioning as a benchmark for overseas brands looking to break in.

But in the context of a wider economic slowdown and cautious consumer spending, which is driving international brands to scale back expansion plans, close underperforming stores and rethink their China strategies, businesses can no longer rely on the country for guaranteed growth — and independent brands must come prepared. Below, a guide on what to know about selling in China now.

Despite a previously strong appetite for logos and status-signaling heritage brands, China’s fashion consumers haven’t been immune to the quiet luxury wave of the last few years. Increasingly, shoppers are turning their attention toward labels that focus more on material and craft.

At Dongliang, an influential multi-brand retailer that’s become a target for overseas designers entering the market, fabric-focused artisanal labels like Auralee, Lauren Manoogian, and Rier are among the most popular. “Having been exposed to a wide range of [brands], local consumers have become more sophisticated in following fashion trends and more discerning in understanding brand narratives and values,” says Kea Duan, Dongliang’s PR.

According to Sophia Dumenil, co-founder of The Chinese Pulse, a consultancy specializing in Chinese consumers, this shift is partly “a cultural return to the Confucian values of modesty and restraint”, with slower economic growth influencing consumers to be more careful and thoughtful with their purchases. “What’s most striking today is just how over-sophisticated consumers have become,” says Dumenil. “They research more, compare more, and prioritize authentic brand stories over impulse buying, looking for real emotional or intellectual connection with what they choose.”

This shift presents an opportunity for emerging indie brands to shine, so long as they build a strong identity around a product while offering the market something fresh and exciting. “The fashion customer in China is very fashion-forward, even compared to other parts of Asia. They are eager to try something new,” says Jonathan Lee, an Asian fashion market expert based in Hong Kong.

Samuel Gui Yang, which is based between London and Shanghai, has been hosting showrooms in China for a decade. “We have been met with great enthusiasm and warmth by consumers that traditionally would have been buying Western luxury, and now feel inclined to explore more niche brands,” he says. On the back of what Yang calls a “very positive” sales trajectory, the brand is set to open its first standalone store in Shanghai this October. “It feels like we’re entering a new stage of development.”

Labelhood’s Liu shares some advice for overseas brands looking to do business in China today: “I think one of the biggest mistakes international independent brands make is treating China simply as a market to enter, rather than a community to become part of.”

For brands and stores alike, this means thinking far beyond traditional retail. Pop-up events, gatherings and special projects in China can help brands engage local consumers directly. “We see this as a more holistic approach to entering the Chinese market, not only bringing products here, but helping brands build cultural connections and become part of the local fashion ecosystem,” says Liu.

Lee agrees that appealing to Chinese consumers as a monolith is the wrong approach. Instead, he advises targeting specific sub-communities a brand can fit into, by tracking adjacent labels that already exist in their market and figuring out how to align with them as much as set themselves apart. “Look at how well they’re doing, which showroom they’re a part of, and which press agency they are joining,” he says.

Last year, ENG Concept Store held a special event in its Shanghai location with Walter van Beirendonck. The Walter’s Tribe activation attracted fans of the brand from Singapore and Japan, as well as scores of locals eager to meet the bearded Belgian designer in-person. “The fan community in China is really strong,” says Laura Darmon, head of buying and business development at ENG. “People really want to know more about their favorite designer, and to understand the person behind the brand. That’s super important.”

Young Peng, who heads up the wholesale operations at Envision, ENG’s brand development arm, works with international brands including Shayne Oliver, Mowalola and Protocol Index, helping them access the market. “A lot of Chinese brands have a lower price point, which is very challenging for the foreign brands who want to come to China,” he says. “For them to get into China, the most important thing is to build up their own communities and brand awareness.”

Crossover content, such as events with music artists or underground communities, can work wonders, but must remain reflective of the brand’s identity and target sub-market. During a recent pop-up for Protocol Index, for example, Peng invited Chengdu-based rapper Thome to perform. “Artists often want to be associated with fashion brands, and the brand doesn’t need to spend an astronomical budget [securing the talent], so it makes sense for everyone,” says Darmon.

Burnished by an efficient supply chain and manufacturing network that helps keep prices down, competition from local brands is fierce. “It’s very hard to compete with [local brands],” says Lee. “There are so many options now, you have to be outstanding, to show your own universe and personality.”

The guochao trend, which celebrates the patriotic consumption of Chinese brands by incorporating traditional culture and motifs into modern design, is growing rather than abating. For overseas independent brands rooted in craft, emphasizing savoir-faire is key. “Chinese consumers are now acutely aware that a huge share of the world’s goods are already made in China, and made well,” says Dumenil. “To stand out, brands need a genuine voice and a genuine value system behind it.”

With ‘Made in Europe’ holding less weight as it once did, international independent brands need to prove their worth through product quality. The Row, for instance, invests heavily in physical retail and shop-in-shops as part of its China strategy, allowing customers to touch and feel the product — important when spending over $1,000 on a shirt.

When asking insiders who’s doing well, Our Legacy comes up consistently. According to Dumenil, the Swedish brand’s “understated design and cult pieces built a loyal following organically” in China, with its popularity spreading by word-of-mouth rather than campaigns. This shows the power of product over marketing, as well as the resonance of the brand’s blend of ’90s minimalism and subtle streetwear.

Open YY is a Korean brand whose playful, layered Y2K aesthetic has tapped into China’s growing appetite for K-fashion. The brand entered the market this summer with a pop-up in a Shanghai warehouse that drew a strong local response from both customers and retailers. But it’s not the only experiential way in which Open YY introduced itself to Chinese consumers — the generally lower price tag of brands outside Europe is an incentive, too. “From the retailer’s perspective, the shipping from Korean brands is cheaper, and the price point is usually not as high as European brands,” says Darmon.

Xiaohongshu, aka RedNote, is the dominant discovery channel in China, functioning like Instagram but with a stronger community and shopping integration. To tap into the RedNote consumer, though, brands need to localize effectively. Directly applying overseas strategies to the Chinese market without adaptation is a common mistake, says Duan, “which often leads to a disconnect with local consumer expectations, cultural nuances, and market dynamics, resulting in poor market fit and limited resonance.”

In April, Lemaire drew controversy in China after a fragrance campaign featured imagery of hair braids alongside a pair of scissors, which Chinese netizens said drew comparisons with the Qing-era queue — a hairstyle that has a fraught history with the West. The online anger at what critics saw as cultural insensitivity prompted the French brand to issue an apology and a note that it would “further strengthen our cultural sensitivity review processes”.

International labels can do this by paying respect to local culture, which, in turn, shows a willingness to integrate into the market, as well as cultural nous. Lemaire, continuing on its strategy of opening stores in traditional or historical buildings across Asia, this year launched a Shanghai flagship in what’s known locally as a lane house, in the quiet neighborhood of Wukang — an unexpected location for a luxury brand, but one that sets it apart from competitors. Meanwhile, Celine’s 2026 Lunar New Year campaign featured a Chinese wishing tree, tied with thousands of red ribbons and Celine silk scarves in homage to the local tradition of tying wishes to sacred trees.