The purpose of this study was to identify the relationship between perceived value, ethnic identity and purchase intention of ethnic apparel. This study examines how Hanfu (traditional costume of the Han Ethnic Group of China) customers perceive certain types of values (emotional value, social value, uniqueness value, conditional value and perceived value). Then this study determined how customers’ perceptions of these values and ethnic identity were correlated with perceived value, and intention to buy Hanfu. Findings from this study indicated that perceived value and ethnic identity were generally associated with purchase intention of ethnic apparel. Hence, ethnic identity moderated the relationship between perceived value and purchase intention. Finally, compared to emotional value, social value, and uniqueness value, conditional value showed the most influential impact on the perceived value. The findings provide an insight in recognizing factors which play an important role in wearing ethnic apparel. More specifically this research provides insight for traditional apparel marketers to design apparel products and reposition the existing products.