Western fashion groups face declining sales in China and Asia

Western mass-market fashion groups are experiencing a decline in stores and sales across Asia, particularly in China, as local consumers increasingly opt for domestic alternatives. This shift is driven by the availability of high-quality local brands that compete directly with foreign labels.

Inditex has seen a reduction in its presence in the region. By the end of 2025, the Spanish giant had 111 stores in China and 19 in Taiwan, down from 134 and 21 in the previous year. Its regional pre-tax profit also fell from 252 million euros to 233 million euros, while Asian sales decreased from approximately 4.7 billion euros to 4.6 billion euros.

In contrast, Gap Inc. is pursuing a different strategy through a partnership with local partner Baozun. Following an agreement in 2022 to transfer its China and Taiwan operations to the local partner, Gap aims to unlock growth and plans to open 50 new stores this year.