Seafolly’s entrance into mainland China is quite an investment. The operations there will run as its own entity, housed in a showroom and office, with a set-up team of six people.
This is according to Seafolly CEO Brendan Santamaria, who tells Ragtrader that this team will include buyers, marketers, planners and logistics — “effectively a mini retail division of our business based in China.”
“So they operate like another store network for us,” Santamaria says. “They will buy from the range, and we'll obviously develop market-specific product for them, and that’ll grow from there.”
The local team’s first point of call is ramping up its online presence through China’s leading social e-commerce platforms, including Rednote, Douyin and Tmall. From there, Santamaria plans to open between 4 and 6 stores in the country over the next three years.
And that will likely be done under license with a local retail operator rather than building its own stores.
“If you look at brands like Scotch & Soda, Hurley, it’s all done under either a franchise or a licence model,” Santamaria says. “So that's the plan. Then the rest of the business will be done through the online platforms.”
What’s more, Seafolly's entrance into mainland China is being overseen by one of the brand’s major shareholders, an American/Chinese businessman who runs his own business in China.
But why mainland China? The market there doesn’t exactly have a big beach culture like Australia, Southern Europe or even the United States. In fact, many reports suggest that a majority of the population there can’t even swim.
But Santamaria says times are changing for the large Asian country. The CEO says the traditional swim market in China over the last two decades has essentially focused on performance-type swimwear, like Speedos for men and significant cover-up bodysuits for women.
In recent times, though, the market has morphed to include more fashionable pieces, as Chinese people travel internationally to places like Bondi Beach in Sydney, or local places like Sanya, Hainan Island.
The market growth numbers also highlight a winning strategy. Mordor Intelligence reports that the Asia Pacific swimwear market is set to scale from just over US$9 billion in 2026 to US$12.42 billion in 2031, at a compound annual growth rate of 6.47 per cent.
In 2025, China commanded a 32.16 per cent share in the market, with that driven by rising health consciousness and fitness trends.
“China's vibrant marathon scene is not only spotlighting the demand for moisture-wicking fabrics but also setting new benchmarks for swimwear materials,” Mordor Intelligence shares.
“In China, premium sportswear brands are experiencing growth rates that surpass those of general apparel, underscoring a consumer trend: a willingness to invest in specialised, activity-centric apparel.
“This discerning, health-focused consumer demographic is reshaping perceptions of swimwear, viewing it increasingly as essential performance gear. As a result, there's a heightened demand for advanced features like chlorine resistance, UV protection, and quick-dry technologies.”
Santamaria says there is also a growing demand for fashionable swimwear, too, which only started in recent years. “On top of that, they have this fixation for Australian swimwear brands.”
He also points to a shift from full-cover swimsuits to more fashionable items. Seafolly will still produce a lot of cover-up product for the China market, but will also dabble in one-piece bathing suits that local women are shifting into.
The other reason to push into China now comes amid a surge in smaller global brands opening up shops in the country. According to Santamaria, China’s retail market was mostly filled with local players and only a few major global brands like Nike or Adidas. Brands the size of Seafolly weren’t really considering mainland China, up until a year or so ago.
A media report by Global Times shared that foreign brands have been opening their debut stores across China over the last year, including British skateboard brand Palace Skateboards, Swiss premium chocolate maker Lindt and South Korean fashion brand Musinsa.
“Fifteen years ago, it was very much domestic brands over there,” Santamaria says. “But I've seen, especially over the last three years, a huge boom in that space, and it's really through online. And it’s not seafolly.com.china; it’s Rednote, Douyin and Tmall that are driving sales.
“If you get it right, and the mix right, you'll see some rapid expansion.”
Seafolly’s focus on mainland China follows major shake-ups in the brand’s other key regions – the United States and the United Arab Emirates. Seafolly runs its own set-up in the US, similar to what management set up in China, with that branch running a standalone store in Corona Del Mar, California, as well as a major stockist portfolio that includes the likes of Nordstrom alongside a handful of boutique retailers including Everything But Water and Aqua Beachwear.
Despite the shake-up with tariffs over the last two years and the uncertainty ahead, Santamaria confirms he and the team are looking at opening up another store in the country, in a similar setting to the Corona Del Mar spot. That’s because the brand’s wholesale business in the country is booming, with US sales reportedly up by around 5 to 10 per cent.
As for the UAE, Santamaria says the market has been challenged due to the US-Iran war. Seafolly has around eight stores there, all under license. Since the war broke out, those stores have been closed for around four of the last several months, and all trading down as low as 40 per cent.
“Before the war, they were enjoying a good 15 to 20 per cent growth year-on-year, and a very strong program to roll out more stores. We put a bit of a pause on things, but the aim was to have 11 stores by the end of 2028,” Santamaria says.
Overall, the CEO of Seafolly says the brand is quite stable at the moment, despite the global challenges. But he does concede that it is very difficult as a discretionary brand – given shifts in interest rates, fuel costs and even the weather.
“So we have to make sure we're affordable,” Santamaria says. “We need to make sure we're attractive, obviously, and we need to continue to provide the best fit for the Australian woman.
“I always say to people that we always want to be followed, not be the followers.”