China’s Outlet Explosion: How “Luxury at 60% Off” Became the Real Flex of 2025
Once upon a time, outlet malls were where designer bags went to retire. You’d drive two hours, eat a sad pretzel, and dig through racks of last season’s leftovers.
Now? They’re the it spots of Chinese retail.
According to the China Commerce Association for General Merchandise, outlet sales in 2024 hit 230 billion RMB, up 9.5 percent year-on-year. That growth beat department stores and convenience chains. McKinsey even predicts the market will hit 260 to 390 billion RMB by 2025.
Developers are racing to cash in. Over 30 new outlet projects are set to open this year, with 15 already live in the first half of 2025. That’s not a trend… that’s a land grab.
When Luxury Needs a Lifeboat, It Builds an Outlet
High-end retail isn’t having its best moment. Only 119 new commercial projects opened in the first half of 2025, a 9.2 percent drop from last year. New retail space fell by 26 percent. Globally, Bain & Company says luxury might even shrink 2 to 5 percent this year.
So what do luxury brands do when their regular stores are too quiet? They go off-price.
Outlets pull in price-conscious shoppers without killing the brand’s image. Think of it as therapy retail: still glamorous, just a little more grounded.
Power moves proving the point
Deji Group rebranded Nanjing’s “Deji Moments” into Deji Outlets, turning it into a high-end playground with restaurants, art, and shopping.
China Resources Land teamed up with Binhaiwan Properties to create the Mixc Village Outlet Mall in Dongguan.
SKP/BHJ Group bought a 266.551 mu site in Xi’an’s Lintong District to build the Terracotta Army International Outlets Town (yes, near that Terracotta Army).
When luxury gets nervous, it builds an outlet.
The Discount Dilemma: Everyone’s Selling the Same Bag
Here’s the tea: most outlets look the same. Michael Kors. Coach. Repeat.
In second-tier cities, brand overlap tops 60 percent. Top-tier luxury names? Less than a third as common as in major city flagships.
The result is predictable: a constant discount war. It’s the fashion version of “Who can yell 50% off the loudest?” And once you start living on markdowns, it’s hard to stop.
Outlets need a glow-up. And they’re finally getting one.
Welcome to the Era of Experience Shopping
Price isn’t enough anymore. Shoppers aren’t just buying handbags; they’re buying afternoons.
The next phase of the outlet boom is all about turning retail into leisure. Analysts call it “retail plus social plus lifestyle.” Translation: coffee, culture, and selfies, all conveniently next to a Prada outlet.
Gen Z now makes up 39 percent of China’s outlet crowd. They don’t just want value; they want vibes.
How new outlets are reinventing the game
Lifestyle Integration: The Chengdu Qingbaijiang International Brand Outlets, launched in August, bills itself as a “4S lifestyle city.” The Mixc Binhai Shopping Village features open-air layouts and architectural flexes built for your feed.
Culture meets Tourism: The Xi’an Lintong Terracotta Army Outlets (SKP Outlets) sits only 800 meters from the Emperor Qinshihuang Mausoleum Museum. In Chengdu, Bailian Outlets at the Panda Resort mixes panda IP with Sichuan spice.
Urban Micro-Getaways: Bailian Group’s Wujie Chang Phase II adds 200,000 square meters tied to nearby cultural sites. Wangfujing Group’s Welltown, opening late 2025, will pack outlets, hotels, and vacation-town vibes into 170,000 square meters.
Shopping is now a mini holiday. Buy a handbag, post a selfie, grab bubble tea, repeat.
The New Luxury Equation
The luxury game is changing fast. It’s no longer about who has the rarest logo but who knows what customers actually want.
Smart developers are creating destinations that make people want to stay. They’re mixing aspiration with accessibility, commerce with culture, and price tags with purpose.
In this new era, selling at a discount doesn’t cheapen a brand. It humanizes it.
TL;DR
China’s outlet industry hit 230 billion RMB in 2024, up 9.5 percent
30 new outlets launching in 2025, 15 already open
Brand overlap above 60 percent in many cities
The future is shopping plus experience plus social energy
Outlets are no longer the retirement homes of retail. They are where luxury finds its second life… one discounted tote at a time.
