Exiting the Tianlong Road station on Shanghai’s Metro Line 12, you can’t miss the bustling shops of the Qipu Road Wholesale Market. In a compact area of just 0.5 square kilometers, there are 10 large shopping malls, over 3,000 clothing retail shops, and around 4,000 employed individuals—numbers that don’t even account for the street vendors.
This location is often referred to as the “golden area” of Shanghai. A short 500-meter walk along the Suzhou River takes you to the iconic Waibaidu Bridge, which offers a perfect view of the three skyscrapers of Pudong. If you continue another 800 meters, you’ll reach the Bund, and after yet another 500 meters, you arrive at Nanjing East Road pedestrian street.
Recently, a video surfaced on social media featuring the caption “Qipu Road in Shanghai is failing,” showcasing numerous shuttered storefronts and an overall sense of desolation. A reporter from China Youth Daily visited this largest clothing distribution center in East China to provide an updated firsthand account. Is the Qipu Road market, a traditional wholesale hub, genuinely struggling in the age of online shopping?
“Over 80% of the workforce here is under the age of 35,” revealed Wang Yu, a staff member at the Qipu Road commercial office. “The video shared by netizens is indeed accurate; our market sees a dip in foot traffic every June, July, and August. Additionally, January and February lack visitors as well, leading many shops to close temporarily. However, they are not shutting down for good.” Wang noted that while the traditional wholesale market has faced challenges from online shopping, local retailers are actively seeking new strategies to adapt their businesses.
Historically, Qipu Road has been synonymous with “cheap deals,” with stalls offering three items for just 100 yuan. Nowadays, retailers are diversifying into independent design and brand management. The summer months become critical for them to explore designs, develop products, and prepare for the peak sales season that arrives in September, October, and November—often considered the slow sales months due to the heat.
Wang further explained that January and February may seem quiet, particularly after the frenetic December sales, as many vendors take time off to return home for the New Year.
During our visit on September 28, the Qipu Road market was bustling with activity. The overpass, streets, and shops were alive with shoppers. Around 1 PM, many merchants were enjoying a late lunch while packaging various clothing items. Bags filled with products ready for shipping were neatly labeled.
Inside some stores, the lights shone brightly as two livestream hosts enthusiastically promoted the latest autumn collections. With outside temperatures hovering around 34°C, Qipu Road was already showcasing fall apparel. Wu Xueqiang, the owner of the MyShow shop, shared that the two livestream hosts, both staff members, gradually transitioned their roles since the COVID-19 pandemic began in 2020.
“This is what peak season looks like at Qipu Road,” he noted.
“This is a classic ‘three highs’ market,” said Lu Di, the Secretary of the Jing’an District Committee of the Communist Youth League in Shanghai. After conducting research on the Qipu Road market, her team identified its features: a high youth demographic, high fluidity, and high external engagement. “Many believe the wholesale clothing market is struggling because of online shopping, but over 80% of the workforce here consists of young individuals below the age of 35.”
The Jing’an District Youth League is currently conducting extensive research on the Qipu Road clothing market, aiming to find new development pathways for its youthful workforce.
Can fashion influencers truly take business away from Qipu Road?
“1, 2, 3, link it up!” This phrase is a familiar chant he heard frequently at the Qipu Road market today, working wonders for boosting sales. Clothing salespeople have transformed into livestream hosts, showcasing their outfits and embodying a “style expert” in various livestreams.
Since its inception in the 1980s, the Qipu Road market has evolved and continues to engage with today’s youth in new ways. Emily Hendricks, in her book “The Influencer Industry: The Quest For Authenticity On Social Media,” notes that one in four Gen Z individuals plans to become a social media influencer, striving to build followers on platforms like TikTok, Instagram, and YouTube to turn content into a full-time income.
According to data from the Ministry of Commerce, online retail sales in 2023 reached 14 trillion yuan in the first 11 months, showing an 11% increase from the previous year. E-commerce accounted for a 31.4% contribution to retail growth, a record high.
A recent report from a domestic social platform highlighted the top 100 influencers, most focusing on content related to beauty, fashion, and fitness. But can these influencers truly steal the spotlight from Qipu Road?
“Our customers mainly consist of fashion influencers and small shop owners, but I don’t personally do livestream sales,” said Huang Xiaohua, a store owner at Qipu Road who has been in the industry for nearly 20 years. She has built a community where only those spending over 5,000 yuan a month can join. “I manage my social media presence daily—whether it’s about being busy, new arrivals, or exclusive designs—all done with a stylish photo and product close-ups.”
Huang explained that during peak season, her store can generate sales of up to 4 million yuan, while seasonal fluctuations mean the second half of the year can be unpredictable. “For us, the physical store is crucial; customers want to see the goods in person before purchasing.”
Though Huang is savvy with her online strategy, she refrains from selling directly on the internet. “I have many exclusive items at competitive prices, and if I sell them online, it would disrupt the market and undercut my clients,” she commented.
Being digitally savvy doesn’t equate to compromising retail integrity. Huang invests 6,000 yuan monthly for professional photography and modeling sessions, ensuring her products are showcased attractively to her community. “These days, customers want both a physical presence and high-quality visuals and videos. My clientele also requires these for their sales efforts,” she explained.
Young people entering the fashion industry shouldn’t feel ashamed.
While some might view joining the sales side of the fashion industry after college as a setback, the reality is starkly different. Even at a traditional wholesale market like Qipu Road, numerous university students can be spotted, leveraging modern techniques and fresh ideas.
Some shops hire students as designers, while others are operated by entrepreneurial graduates. Staff often include university students adept at photography, styling, video editing, and utilizing contemporary marketing language—skills that are in high demand among store owners willing to pay for them.
Recently, the Shanghai government unveiled a “Three-Year Action Plan for Promoting High-quality Development of Livestreaming Economy (2024-2026),” aiming for a livestreaming retail sales target of 600 billion yuan by 2026. The plan seeks to nurture 10 leading livestream platforms with international competitiveness and establish 100 distinctive livestream scenarios, striving to create a globally influential livestream economy.
In this transformation, the youth of Qipu Road are stepping into the limelight.
“I won’t sell cheap goods! I want to build my brand into a century-old legacy!” declared Liu Xiao Jin, owner of the Haripol men’s clothing store. Formerly a chef, Liu now runs a brand-focused store with a graduate from Tongji University. His shop features brands, designs, logos, and price tags—every article of clothing comes with detailed fabric specifications, and he can elaborate on the design intricacies of zippers and plackets. Even the ringtone on his phone is the Haripol customer service notification.
Liu shared he has over 100,000 followers on Douyin. When he noticed a reporter preparing for a video shoot, he reminded them to be cautious, mentioning that many designs are copyright-protected. When the camera was on him, he quickly switched to his “business persona,” standing tall, presenting his best side to the lens. “This is vital for our livestreaming; we have to maintain a steady appearance, looking good on-screen while being interviewed.”
The “basics of livestreaming,” a course offered during the market’s off-peak season, is supported by the Communist Youth League’s local branch in the Qipu Road market. This team is engaged in outreach and support for young individuals and also offers courses on protecting minors and after-school programs.
Recently, to highlight the importance of a “career development community,” the Youth League partnered with the district’s cybersecurity office, media centers, and MCN companies to conduct training on livestreaming skills, sales techniques, and platform visits, assisting young people in uncovering new opportunities. A youth community called the Qipu Road Youth Livestream Alliance has also been established.
— Wang Ye Jie, China Youth Daily
