Within time the qipao were tailored to become more form fitting and revealing. The modern version of the qipao was first developed in Shanghai around 1900, when the Qing Dynasty came to an end and people eagerly sought for a more modernized style of dress. Slender and form fitting with a high cut, it contrasted sharply with the traditional qipao. In Shanghai it was first known as 長衫 (or long dress. Mandarin: chángshan, Cantonese: cheongsam, Shanghainese: zansae).

The modernized version is especially noted for accentuating the figures of women, and as such is highly popular as a dress for high society. As Western fashions changed, the basic cheongsam design changed too, introducing high-necked sleeveless dresses, bell-like sleeves, and the black lace frothing at the hem of a ball gown. By the 1940s, cheongsam came in transparent black, beaded bodices, matching capes, and even velvet.