Indeed, the financial results of the Silk Road on the Sea, one of the subsidiaries of Shanghai Silk Group, indicate that the industry is indeed alive and well. Established in 2012, the brand's sales have enjoyed an average annual growth rate of 20 percent since its inception, reaching 10 million yuan last year. The company expects to rake in 50 million yuan in annual sales within the next five years.

Silk Road on the Sea currently has eight retail spaces in Shanghai and introduces between 40 and 60 new products every year. In June, it released its latest summer collection, comprising silk scarves combined with wool and silk paintings that feature Shanghai's skyline.

"For most of the silk brands in China, tourists who purchase silk products as one-off souvenirs make up the core group of customers," says Lyu.

"However, our most important growth driver is the local consumers. They are mostly female, above the age of 30 and like incorporating silk into their wardrobe. This means sustainable growth."