Retail Expansion Strategies in China's Lingerie Sector

If you're eyeing growth in China’s booming lingerie market, you’re not alone—but success isn’t just about showing up. With urbanization, rising disposable incomes, and shifting consumer attitudes toward body positivity, the sector is projected to hit $28.5 billion by 2026 (CAGR of 9.3% since 2021). But here’s the real tea: only brands that blend localized insight with smart retail expansion win long-term.

Why Traditional Malls Are Losing to Experiential Pop-Ups

Gone are the days when placing a store in a Tier-1 city mall guaranteed traffic. Today’s Chinese shoppers—especially Gen Z and young millennials—crave experiences. A 2023 McKinsey report found that 68% of lingerie buyers prefer pop-up stores in lifestyle districts over traditional department outlets.

Take NEIWAI (内外), a homegrown brand that ditched cookie-cutter mall kiosks for standalone boutiques in Shanghai’s Jing’an and Beijing’s Sanlitun. Their secret? Cozy interiors, gender-inclusive messaging, and in-store yoga sessions. Result? A 40% higher average transaction value compared to mall-based competitors.

The E-Commerce vs. Physical Store Dilemma

You might think online dominates—and it does. Over 72% of lingerie sales happen via platforms like Tmall and JD.com. But here’s the twist: consumers who engage with a brand both online and offline spend 2.3x more annually.

That’s why omnichannel isn’t optional—it’s survival. Brands like Ubras are leading with 'digital-first, experience-led' models: online data informs store layouts, while physical locations act as content studios for livestreams.

Surprised? Physical stores have higher upfront costs but build trust and loyalty faster. The sweet spot? Start digital to validate demand, then launch targeted flagship stores in communities where your audience already clusters—like Chengdu’s indie fashion hubs or Hangzhou’s e-commerce corridors.

Localization Beats Global Glamour

Western brands often stumble by pushing padded bras in a market that increasingly favors comfort. Since 2020, sales of wire-free and sports-style bras have grown by 15% YoY, while traditional structured styles stagnate.

Adapt or fail. When Victoria’s Secret first entered China, their runway glam didn’t resonate. Fast forward—they’ve now pivoted to softer lines, local KOL collabs, and even launched a ‘Body Positivity Studio’ in Guangzhou. Sales in China rose 11% YoY in 2023 after years of decline.

Final Tip: Leverage Tier-2 & Tier-3 Cities

Tier-1 cities are saturated. The real opportunity? Tier-2 and Tier-3. Cities like Wuxi, Xiamen, and Zhuhai boast rising female purchasing power and less competition. A 2024 Nielsen study showed lingerie spending in these areas grew 13.5% last year—outpacing Tier-1 by 2.1 points.

Start small: test demand via social commerce (think Xiaohongshu + WeChat mini-programs), then open compact experiential stores. Keep rent low, focus on community, and let word-of-mouth do the heavy lifting.

In short, winning in China’s lingerie retail space isn’t about scale—it’s about smart, human-centered strategy. Listen to local voices, blend digital agility with physical warmth, and remember: comfort sells.