Taobao offline stores: A new era for China’s retail?

In the past six months, about 20 Taobao-based designer fashion brands have begun opening offline stores. These brands include Meiyang, Wooha, Amanda X, Superscape, AAAD, Jaja in the Moment, Random Piece, Sage Studios, Renathing, Via Pitti, Anno Mindo, and 1Jinn Sudio, among others. The founders of these Taobao-based brands view their offline presence as a key growth strategy for long-term brand building. By offering in-store try-ons, they hope to reduce costs associated with returns and exchanges. Moreover, selecting strategic offline locations can attract high-quality customers, helping these brands overcome the growth plateau often experienced by online-only stores. In the current retail environment, shaped by China’s economic slowdown, this offline expansion aligns well with shifting consumer expectations. Local shoppers are increasingly seeking unique, high-quality fashion at affordable prices, within a retail context that feels fresh and engaging. Filling the gap left by mainstream brands Mainstream fashion brands in China, especially those in major malls, have faced criticism for their lack of design creativity and growing homogenization. As Ladymax, a Chinese-language fashion business publication, noted in November 2024: “In recent years, consumers have complained that the designs of Chinese mainstream commercial womenswear brands have become increasingly formulaic, with declining quality, while prices continue to rise.” In contrast, Taobao-based designer brands are offering something different. Their designs are more unique, catering to consumers who want clothing that reflects their individuality. Additionally, these brands ensure that every aspect of their offline presence reinforces their brand identity. This consistency in both store and product design helps customers form a deeper connection with the brand, ultimately contributing to long-term brand loyalty. A response to consumer pragmatism Chinese consumers are becoming more pragmatic, scrutinizing the cost-effectiveness of their purchases. As product quality declines across many categories, including fashion, while the prices of mainstream brands continue to rise, dissatisfaction is growing. A recent hot topic on Weibo highlights this issue. A post titled “I don’t dare to buy clothes in the mall with a monthly salary of 20,000 yuan” (#薪两万不敢在商场买衣服) went viral, amassing over 230 million views. The post reflects growing frustration with the exorbitant prices of clothing in malls, as many consumers feel they are no longer getting value for their money. In this environment, Taobao-based brands are gaining traction by offering reasonable prices without compromising on quality. These brands provide stylish, well-designed clothes made from good-quality fabrics, delivering value to consumers who no longer want to pay a premium for mediocre products. 3 case studies Jaja in the Moment Store location: Luhu CPI, Chengdu Taobao followers: 1 million Positioning: Mid-end / Core price range: 200-3,000 RMB ($28-$412) Jaja in the Moment was founded in Chengdu in 2017. The brand embodies a “simple daily” dressing concept, featuring classic designs and comfortable fabrics. Its clothing is loose and relaxed, with subtle colors that cater to the tastes of sophisticated urban women seeking a quiet, understated style. In April, Jaja opened its first offline store in Chengdu’s Luhu CPI, a park and community business district. Inspired by the concept of a tree house, the store blurs the boundaries between nature and artificiality. The space is divided into two distinct areas: the exterior features a transparent “tree house reception room” made of glass, while the interior, with its white walls, offers a more private retail space. This design aims to create a relaxing, natural, and welcoming sensory experience, inviting customers to feel both at ease and connected to the outdoors. Sage Studio Store location: Gate M, Shanghai Taobao followers: 655,000 Positioning: Mid-end / Core price range: 220-3,680 RMB ($30-$500) Sage Studio was established in 2015. The brand strikes a balance between minimalism, romance, and retro influences. Founder @蓓蓓Beibei is known for her refined taste and playful touch, blending elegance with exquisite style. In September, Sage Studio opened its first physical store at Gate M Shanghai, a trendy new shopping and lifestyle area in the West Bund. The store is spacious and bright, evoking the feeling of stepping into the sitting room of a high-end apartment. The design captures a contemporary minimalist aesthetic, with fragrances and books artfully arranged on a large stone table, adding to the inviting atmosphere. The store’s design extends to every detail, including the fitting room, which is crafted to feel like a private cloakroom. It features layered wardrobe partitions and decorative pillows, creating a relaxed and intimate space for customers. Random Piece Store location : Gate M, Shanghai Taobao followers: 3.1 million Positioning: Mid-end / Core price range: 200-3,399 RMB ($28-$466) Random Piece was established in Shanghai in 2011. The designers draw inspiration from the random moments of daily life, exploring simple, comfortable ways of dressing. The brand’s overall style is relaxed yet elegant. Most of the pieces are versatile, practical, and high-quality, making the brand a favorite among urban working women. In line with its growth, the brand opened its first offline store at the newly launched Gate M in Shanghai. At this trendy shopping destination, online and offline memberships and credits are seamlessly integrated, offering customers a unified shopping experience. The opening party attracted many of the brand’s loyal customers and fashion blogger friends, creating a lively social atmosphere. Shortly after the store’s launch, the brand introduced a collaboration with textile studio @TANCHEN, showcasing unique designs within the space. The Chinese Pulse is a trend intelligence and marketing consulting agency dedicated to accompany brands in the fashion, beauty, luxury and lifestyle industries on the Asian contemporary markets.

Taobao offline stores: A new era for China’s retail?

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Published January 11, 2025

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Taobao offline stores: A new era for China’s retail?