After the establishment of the People's Republic of China in 1949, Shanghai fashion experienced another change as people became more frugal. The once-forgotten attire such as embroidered shirts and Zhongshan clothes made a comeback. This fashion trend lasted until the reform and opening-up of the country in 1978 when Western clothes became popular again. Trumpet trousers, jeans, short skirts and sportswear, although regarded as weird foreign styles, became popular in Shanghai, especially among young adults.

Shanghai-style fashion has since then always been abreast of the latest developments in the world. In 1995, the first Shanghai International Fashion Culture Festival was held in the city, featuring expositions, competitions and forums on fashion. The festival is still being held today.

The Shanghai government is currently focused on building its "four brands"-services, manufacturing, shopping and culture. The fashion sector has been identified as a key player in this project and many new measures have been implemented to drive creativity and support designers.

"The new Shanghai-style fashion is not limited to fashion in Shanghai-it also includes the surrounding areas that have embraced the values of Shanghai fashion, which are inclusiveness, openness, commercialism and innovation," said Liu Xiaogang, professor from Donghua University's school of art and design.