The rise of the creative economy has created a new wave of prosperity that improves the overall living environment and encouraged sustainable industrial development. The fashion industry, the reprehensive positions in creative economy, is regarded as an emerging sector for achieving urban retail development. Based on five fashion retail districts in Taipei City, Taiwan, this investigation collects questionnaires and analyses the answers to identify the elements of shaping fashion industry formation. Analytical results confirm positive impacts of physical environment on fashion retail aggregations, such as convenient transportation, great price and proximity to other business districts. Moreover, the factor of atmospheric environment is also considered as the important factors by consumers and fashion retailers. Additionally, the connection of chain network through infrastructures provision, business collaboration and government and non-government supports could promote fashion industry development.

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