Yu Jinjian, founder of silk lingerie brand Sang Luo, pointed out that the characteristics of silk have also worked against the popularity of the fabric, explaining that many consumers are not fond of it because it wrinkles easily and is difficult to launder.

In 2017, the total amount of raw silk produced in China stood at nearly 140,000 metric tons, down by 1.86 percent year-on-year. Meanwhile, the production of processed silk dropped by 11.62 percent to about 7,600 tons, according to the National Bureau of Statistics.

Some manufacturers have responded to the situation by mixing low quality silk with other types of fabrics so that the product can be sold cheaply. But Yu has adopted a completely different approach repositioning silk as a luxury item.

Her strategy has certainly worked. Last year, Sang Luo raked in 900 million yuan in revenue, up 20 percent from the previous year. The company also achieved 40 million yuan in online sales during the first half of this year, up by 200 percent.