For much of the past two decades, real estate has served as the bedrock of China’s economic rise. Now, however, the sector is in prolonged decline, weighing heavily on household wealth since property accounts for more than 70 percent of Chinese families’ assets, and falling home values have eroded confidence and dampened consumer demand.
In response, policymakers have turned their attention to urban renewal, which was reaffirmed as a national priority in August. Unlike earlier phases of redevelopment focused primarily on physical infrastructure, the new approach emphasizes integration of space, industry and culture — a recalibration that carries profound implications for fashion.
The question is how fashion can harness urban renewal not just as a backdrop, but as a catalyst for growth and transformation. Three pathways are emerging.
1. New Consumption Scenarios: From Cultural Heritage to Experiential Economies
Urban renewal is creating immersive, participatory consumption experiences that connect culture with commerce.
One notable example is the revival of Xunpu’s traditional zanhuawei (hair-pinned flowers) in Quanzhou, a city with deep ties to the Maritime Silk Road. What began as an intangible cultural heritage practice has evolved into a robust tourist and cultural economy, combining flower-styling experiences, costume rentals, photography studios and creative products. Today, more than 310 studios in Xunpu welcome over 20,000 visitors daily, with tourism revenues surpassing 1.8 billion yuan, or $250.6 million.
The hair-pinned flower trend emerged first in Xunpu. Courtesy photo.
A similar logic underpins the transformation of Beijing’s 700-year-old “Silver Street,” where heritage businesses coexist with cultural formats like Shan Hai Si He by Jetlag Books. By blending old and new, the street has become a hub for young creatives while preserving the character of Beijing’s hutongs.
For fashion, these renewed cultural scenarios open fertile ground. The rediscovery of heritage practices fuels not only cultural tourism but also rising demand for garments, accessories and aesthetics rooted in tradition. By embedding itself in these experiential economies, the industry can unlock fresh engines of growth.
2. Industrial Clusters: From Isolated Projects to Ecosystem Synergies
Beyond consumption, urban renewal is also accelerating industrial clustering, boosting efficiency and fostering creative ecosystems.
Shanghai’s Yanqingli — the Bailian Fashion Center — offers a blueprint. Originally a 1929 British-style warehouse, the site has been redeveloped into a creative park dedicated to fashion, blending preserved industrial architecture with new uses such as designer studios, showrooms and cultural venues. The result is a “front shop, back factory” model that combines retail, production, education and exhibition.
The approach is being replicated nationwide. Zhangjiawan Design Town in Beijing, now home to more than 3,500 enterprises, has set its sights on becoming both a national innovation hub for fashion by 2030 and a globally recognized center by 2035. The relocation of 2,400 faculty and students from the Beijing Institute of Fashion Technology to the town this year further strengthens its integrated ecosystem of R&D, design, intelligent manufacturing and cultural experience.
These developments suggest that fashion is no longer an isolated sector within urban planning. Instead, it is becoming a driver of industrial synergy, with clusters that support the entire value chain while anchoring fashion within broader economic strategies.
3. Cultural Empowerment: From Brand Expression to Social Value
Perhaps the most transformative dimension of urban renewal lies in cultural empowerment, where fashion intersects with art, film and lifestyle to generate social as well as commercial value.
The partnership between Chanel and the First International Film Festival in Xining exemplifies this shift. Over five years, their “First Frame” program has screened 45 films spotlighting female narratives, integrating fashion with cultural expression and reshaping the local creative landscape. In 2025 alone, submissions reached a record 783 entries, while related livestreams drew more than 263,000 viewers and multiple trending moments on Weibo.
Chanel has partnered with the First International Film Festival for five years. Courtesy photo
By embedding itself within cultural platforms, Chanel has gone beyond conventional brand placement to establish deep connections with audiences. The initiative contrasts with Louis Vuitton’s “Louis” installation at Shanghai’s HKRI Taikoo Hui, where oversize architectural interventions delivered instant impact through spectacle. Chanel’s approach, by comparison, reflects a subtler strategy of cultural influence that is equally powerful in redefining brand presence within urban renewal.
These cases demonstrate that luxury brands, with their global resources and cultural capital, are well positioned to shape new narratives in city-making. Their participation elevates urban renewal from physical redevelopment to a broader reimagining of cultural identity and community life.
Looking Ahead
As China’s leaders continue to stress urban renewal as a national imperative, the fashion industry stands at the heart of this transformation. With its dual role as both a consumption driver and a cultural force, fashion is uniquely placed to bridge real estate, lifestyle and industry upgrading.
In an economy searching for new growth drivers beyond property, fashion’s ability to create experiences, build ecosystems and empower culture is positioning it as a critical engine of renewal.
China Insight is a monthly column from WWD’s sister publication WWD China looking at trends in that all-important market.