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Once considered defeated in the Chinese market, overseas fast fashion brands are making a notable resurgence. For example, Forever 21, which withdrew from China in 2019, has re-entered with new stores in locations like Ningbo and has ramped up expansion efforts since 2023. 

However, in an era of rapid consumer shifts, the traditional supply chain advantage that these brands once relied on has weakened. As they re-enter the competitive landscape, the question remains: can they reclaim their place in China’s fast-paced retail market? 

The “Golden Decade” of Overseas Fast Fashion Brands in China 

Between 2006 and 2016, international fast fashion giants like C&A, TopShop, New Look, and Forever 21, along with Gap and its subsidiaries Old Navy and Gap, as well as Zara’s sister brands Bershka, Pull&Bear, and Stradivarius, made their debut in the Chinese market. During this period, they enjoyed remarkable success and widespread popularity. 

Development Process of Overseas Fast Fashion Brands in the Chinese Market 

By 2016, the fast fashion industry faced a turning point, with even its leading giants entering a wave of store closures. 

In the beginning, Chinese consumers sought high-quality and high-priced clothing, but fast fashion presented a fresh alternative. Overseas brands entering the Chinese market gained rapid popularity by offering designs that closely mimicked high-end fashion at a fraction of the cost. This strategy captured consumer attention and positioned these brands as accessible yet stylish options. 

However, the tides began to shift. In 2017, ZARA closed its largest flagship store in mainland China. By June 2019, the brand had shuttered two major stores in Beijing’s prime commercial districts, and by the year’s end, all its locations in Wuhan had ceased operations. In January 2023, ZARA closed its first-ever store in China, located on Shanghai’s prestigious Nanjing West Road—a symbolic retreat for a brand that had once dominated the market. 

H&M followed a similar trajectory, gradually reducing its footprint. Between 2020 and 2022, its store count in China dropped from 479 to 360, and as of 2023, only 309 locations remain. Adding to this decline, H&M’s lower-tier brand MONKI exited the market in June 2022 by shutting its Tmall flagship store. 

As overseas fast fashion brands retreated step by step, domestic players surged forward to fill the void.  

The rapid rise of e-commerce gave Chinese consumers a plethora of choices. Similar styles to those offered by ZARA and H&M became widely available on e-commerce platforms, often at more competitive prices. Furthermore, the quality of fabrics and craftsmanship from these platforms increasingly matched, if not exceeded, that of their international competitors. 

Domestic brands capitalized on this shift. In 2018, UR opened 13 new stores across mainland China. Traditional fast fashion labels like Hotwind and Metersbonwe reinvented their strategies, launching products designed to appeal to younger audiences and capturing a significant share of the market. The dominance of domestic fast fashion was further highlighted during the 2023 618 shopping festival, where major platform rankings underscored their growing influence. 

2023年618天猫女装榜单 

The decline of once-popular overseas fast fashion brands can be attributed to two primary factors. First, consumer preferences and aesthetic sensibilities have undergone significant changes, favoring a broader range of options and cultural resonance. Second, domestic fast fashion brands, deeply rooted in Chinese culture and bolstered by efficient supply chains, have risen to prominence, reshaping the market landscape. 

The Eroding Supply Chain Advantage of Overseas Fast Fashion Brands 

The once-dominant supply chain advantage of overseas fast fashion brands has notably diminished. ZARA, renowned for its agile and robust supply chain, initially leveraged this capability to secure a leading position in the global fast fashion industry. Upon entering the Chinese market, domestic brands quickly adopted and adapted ZARA’s model of flexible supply chains, leveling the playing field. 

Domestic players, such as SHEIN, have taken this concept even further. SHEIN’s strategy of smaller batch sizes, highly adaptable ordering systems, and frequent market testing allows it to identify and capitalize on trends at lightning speed. This agility has enabled SHEIN to carve out a solid position in the global market, posing a significant challenge to traditional fast fashion giants like ZARA. 

In practice, the differences are stark. SHEIN typically places orders ranging from 100 to 200 units per style, with an average delivery cycle of just one week. ZARA, by contrast, requires a minimum order of 500 units per batch and operates on a two-week delivery cycle. Additionally, SHEIN introduces between 3,000 and 4,000 new products daily, the majority of which fall within low-price categories, offering a constant stream of affordable options. 

SHEIN’s digital-first approach further accelerates its dominance. By operating primarily through online channels, SHEIN’s product testing speed is roughly five times faster than ZARA’s. This efficiency allows SHEIN to experiment with a greater variety of clothing styles in a shorter time, significantly increasing the likelihood of producing successful trending items. 

A poignant message displayed at the entrance of the soon-to-close H&M store in Sanlitun, Beijing, reads: “Farewell is for a better reunion. We look forward to encountering you once again.” This sentiment captures the reality for many overseas fast fashion brands struggling in the Chinese market. 

As the world’s largest consumer market and second-largest economy, China remains a lucrative prize that foreign brands cannot afford to relinquish. In 2025, overseas fast fashion brands are actively seeking innovative strategies to overcome their challenges and re-establish their foothold in a market that continues to evolve at breakneck speed.