In the past two decades, real estate has served the foundation of China’s economic rise. Now, however, the sector is a longer decline and is heavily burdening on household assets, since ownership is more than 70 percent of the assets of Chinese families, and falling house values have the trust and demand from consumers.
In response to this, the political decision -makers pointed their attention to the renewal of the cities, which was confirmed as a national priority in August. In contrast to previous phases of the renovation, which mainly focus on the physical infrastructure, the new approach emphasizes the integration of space, industry and culture – a new calibration that has profound effects on fashion.
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The question is how fashion can use the city’s renewal not only as a background, but also as a catalyst for growth and transformation. Three ways arise.
1. New consumption scenarios: from cultural heritage to experimental economies
The renewal of the city creates one -to -day, participatory consumer experiences, which combine culture with trade.
A remarkable example is traditionally the revival of Xunpus Zanhuawei (Hair flowers) in Quanzhou, a city with deep relationships with the maritime silk road. What started as an intangible cultural practice has developed into a robust tourist and cultural economy and combines flower stir experiences, costume rental, photo studios and creative products. Today, more than 310 studios in Xunpu welcome over 20,000 visitors every day, with tourism income exceeding 1.8 billion Yuan or $ 250.6 million.
The hair -tensioning flower trend first appeared in Xunpu. Cemority photo.
A similar logic underpins the transformation of Beijing’s 700-year-old “Silver Street”, in which heritage business works with cultural formats such as Shan Hai Si He from Jetlag Books. By mixing old and new, the road has become a center for young creative and preserves the character of Beijing’s Hutongs.
For fashion, these renewed cultural scenarios open a fertile soil. The rediscovery of the heritage not only practices cultural tourism, but also the increasing demand for clothing, accessories and aesthetics that are rooted in tradition. By embedding in these experimental economies, the industry can unlock new growth engines.
2. Industrial cluster: From isolated projects to ecosystem synergies
In addition to consumption, the city’s renewal accelerates industrial cluster formation, increases efficiency and promotes creative ecosystems.
Shanghais Yanqingli – the Bailian Fashion Center – offers a blueprint. The originally a warehouse from the British style of 1929 was converted into a creative park dedicated to fashion and combines the preserved industrial architecture with new uses such as designer studio, exhibition rooms and cultural venues. The result is a model “Front Shop, Back Factory” that combines retail, production, education and exhibition.
The approach is replicated nationwide. Zhangjiawan Design Town in Beijing, Now Home Than 3,500 Enterprises, Has Set Its Sights On Becoming Both A National Innovation Hub for Fashion BY 2030 and a Globally Recognized BY 2035. 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 in urban planning. Instead, it will be a driver for industrial synergies with clusters that support the entire value chain and at the same time anchor fashion in broader economic strategies.
3 .. Cultural strengthening: From brand expression to social value
The most transformative dimension of urban renewal lies in cultural strengthening, in which fashion overlaps with art, film and lifestyle both social and commercial value.
The partnership between Chanel and the first international film festival in Xining illustrates this shift. In more than five years, their “First Frame” program has shown 45 films, integrating female stories, integrating fashion into cultural expression and redesigning the local creative landscape. In 2025 alone, the entries reached a record of 783 entries, while related livestreams moved more than 263,000 spectators and several trend moments on Weibo.
Chanel has been working with the first international film festival for five years. Courtesy
By embedding Chanel in cultural platforms, it went beyond conventional brand placement to establish deep connections to the audience. The initiative is in contrast to Louis Vuitton’s “Louis” installation at Shanghais Hkri Taikoo Hui, where oversized architectural interventions through spectacle had an immediate influence. The approach of Chanel reflects compared to a more subtle strategy of cultural influence, which is also strongly defined in the redefinition of the brand presence in the renewal of the cities.
These cases show that luxury brands with their global resources and their cultural capital are well positioned in order to form new stories in urban production. Their participation increases the renewal of the city from physical renovation to a broader reinterpretation of cultural identity and community life.
Look ahead
Since China’s guide continues to emphasize urban renewal as a national imperative, the fashion industry is the focus of this transformation. With its double role as a consumer driver and a cultural force, fashion is unique to bridge real estate, lifestyle and industries.
In an economy that is looking for new growth strikers beyond the property, the ability of fashion is to create experiences, build ecosystems and strengthen culture as a critical engine of renewal.
China Insight is a monthly column of the WWD sister publication WWD China, which deals with trends in this important market.
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