Abstract: Along with the step-by-step withdrawal of U.S. QE, the contraction of China’s banking credit scale and also the weakening financing function of the real estate market and capital market, locally listed apparel companies are facing increasing constraints when extending their business to the high-profit fields such as the real estate industry. However, under the background that the apparel industry is losing competitive advantages and the difficult situation of the apparel industry is hardly improved, the diversified development model adopted by clothing listed companies will exist in a very long period of time, and comparatively speaking, the incremental related diversification strategy could be used as the preferred strategic choice for listed apparel companies.

Key words: listed apparel companies; dilemma of diversified development; strategic choice