Shanghai Fashion Week is a major event in the world of the fashion industry, showcasing the ingenuity, creativity, and innovation of Chinese designers on a large scale. It promotes cooperation and intercultural communication by building an interface between the Western and Eastern fashion industries. Reputably ranking among the most influential fashion weeks in Asia, it draws the attention of the media, foreign purchasers, and fashion lovers. Therefore, it is increasing the prominence of emerging and well-established Chinese and international creators. In this context, a study was conducted to explore the policy initiatives for the development of the creative industries cluster and the promotion of Shanghai Fashion Week. A qualitative research methodology was applied to collect the data. A semi-structured interview was carried out by stakeholders, economists, and policymakers. The results of the finding reveal that an effective governance model for the implication of policies to ensure the development of an industrial cluster and the influence of cultural clothing is possible through monetary incentives for environmentally friendly clothing, tourism emancipation infrastructure funding, public and private relationships, and effective departmental collaboration by the Chinese local municipal government.