While China’s overall personal luxury market saw a contraction of 15-20% in 2024, the Guo Chao (National Tide) cultural movement is fueling a significant boom for local apparel brands that fuse Chinese heritage with contemporary design. This trend reflects a crucial shift where younger consumers prioritize cultural authenticity and value over foreign brand status.

Heritage brands turn performance stars

Domestic powerhouses in the apparel sector are reporting impressive growth, capitalizing on this new cultural confidence. Bosideng, China's largest down clothing company, reported record results for the FY2024/25, with revenue climbing 11.6% year-over-year to 25.90 billion RMB ($3.62 billion). Similarly, sportswear giant Li-Ning reported a 2.3% year-over-year revenue growth in the first half of 2024, significantly outpacing some global competitors.

The ‘Guo Chao’ advantage

These domestic success stories are driven by Neo-Chinese Style product innovation, which incorporates traditional motifs and artisanal techniques into modern silhouettes. For brands like Bosideng, this strategy has involved upgrading their product lines and digital engagement to resonate with Gen Z. This market pivot demonstrates that for luxury and premium apparel, the "Made in China" label now signifies unique design and cultural relevance, forcing global fashion brands to rethink their localization strategies.