As online platforms continue to thrive and both domestic and international brands expand their presence in the Chinese market, consumers now have a wider range of purchasing options, and their trend preferences are shifting. However, overseas streetwear brands appear to be struggling to keep up with the evolving trend.
Looking back at the days when customers would eagerly line up outside stores, it’s clear that the closure of these locations reflects the broader decline of overseas streetwear brands like BOY LONDON, BAPE, and Stylenand, with the exception of Champion, which continues to maintain its relevance.
Why are overseas streetwear brands no longer thriving? Three key reasons:
- Overseas streetwear brands face tough competition from the rising “Chinese New Trend”
Since 2020, due to COVID-19 prevention and control measures, most consumers have shifted their focus away from offline activities, driving a significant increase in online consumption. The accessible nature of e-commerce platforms has provided an excellent opportunity for domestic original brands, propelling their growth to new heights in recent years. Data reveals that local streetwear brands have experienced steady expansion, with the streetwear market adding over 500 brands between 2020 and 2022, 90% of which were domestic Chinese streetwear brands.
Source:《2022潮流服装消费者品类趋势洞察报告》
2. Influx of Overseas Brands
Online, as of November 2022, data shows that nearly 40,000 overseas brands from over 90 countries and regions have established a presence on Tmall Global. Notably, 2021 alone saw the addition of approximately 8,500 new overseas brands.
Offline data from China Commerce indicates that in the first half of 2022, 9% of the 366 new stores opened in Shanghai were overseas brands, with the United States, France, and Germany serving as the primary sources.
3. Counterfeiting and Its Impact
Simple, easy-to-replicate logos and designs have led to rampant counterfeiting in the streetwear industry, becoming a persistent issue for brands. This challenge was evident even before Champion officially entered the Chinese market, where unauthorized purchasing agents and counterfeit goods flooded the market. Despite Champion opening official stores, counterfeit products remained a significant issue. The brand even issued public warnings on its platform, urging consumers to be wary of fake products sold in unauthorized stores.
Counterfeit goods negatively impact brands in two major ways. First, they create dissatisfaction among consumers who pay premium prices for original products. Second, they attract low-loyalty consumers who opt for cheaper counterfeit alternatives. Both scenarios hinder sustainable brand growth and erode credibility in the eyes of consumers, posing a long-term threat to the domestic market presence of streetwear brands.
Will overseas streetwear brands adapt to the market in 2025 or stay true to their style?
Off-White founder Virgil Abloh once predicted that “streetwear is about to die.” Yet, recent trends suggest otherwise, with the young consumer market being heavily influenced by outdoor, sporty, millennial, and retro aesthetics. Amid these shifts, some notable streetwear brands like BOY LONDON (UK), BAPE (Japan), and Stylenanda (South Korea) have faced closures.
The rise of camping culture has redirected domestic consumers’ attention to outdoor activities, signaling a potential avenue for traditional streetwear brands to diversify their styles.
1. Outdoor Style
The outdoor aesthetic has gained significant traction, with popular domestic and international brands such as The North Face, JACK WOLFSKIN, Columbia Sportswear, Arc’teryx, and An Ko Rau leading the way. Notably, Arc’teryx, now under Anta Group, has emerged as one of its fastest-growing businesses. Anta’s financial reports show that Arc’teryx achieved a retail sales growth rate of 40%-45% year-over-year in the third quarter of 2022.
2. Emerging Sports Style
The emerging sportswear trend has flourished, driven by increasing interest in health and fitness activities like yoga and Pilates, particularly among women. According to iMedia Research, in 2021, there were 3-5 million heavy yoga users, over 3 million moderate users, and more than 70 million occasional practitioners in China. Annual membership spending for this group typically ranges from ¥5,000 to ¥20,000.
Yoga pants, as a derivative of this trend, have gained immense popularity. Brands like Lululemon have capitalized on the “she economy” by designing tight-fitting sportswear that emphasizes comfort and aesthetic appeal. This has redefined women’s activewear, shifting from loose designs to stylish daily wear essentials.
3. Millennial Style
The millennial fashion revival, particularly the Y2K trend, has captured the attention of young consumers. Iconic brands like Miu Miu, Versace, Balenciaga, Jaded London, and Blumarine have embraced this aesthetic, which draws inspiration from early 2000s styles.
Google Trends indicates a significant increase in searches for “Y2K” over the past year, with interest peaking recently. On TikTok, the hashtag #Y2K has garnered 2.4 billion views, underscoring its influence. This retro wave has also boosted the second-hand clothing market. Data reveals that 53.7% of platform users purchase retro-style clothing, while 32.7% express growing nostalgia and interest in collecting vintage items or experimenting with retro outfits.
While the three popular styles mentioned above are not entirely new, they represent a fresh discovery for Generation Z, the dominant consumer demographic in the domestic market. At the same time, street fashion appears to be falling behind in this latest trend cycle.
The saying “fashion is a circle” holds true for the industry, as staying relevant often requires balancing tradition and innovation. For a brand to remain memorable, it must maintain its distinctive style amid ever-shifting trends. Yet, adapting to new trends is equally critical for staying competitive. However, excessive adaptation risks diluting a brand’s uniqueness.
The key to the sustainable growth of clothing brands lies in understanding evolving consumer preferences while staying true to core brand values. Successfully integrating these values with contemporary trends allows brands to remain relevant without compromising their identity
