A village of just over 700 households in northern China achieved over 700 million RMB in e-commerce and livestream sales of fabric products in 2025. This figure is enough to make many traditional textile towns sit up and take notice.
Industrial Foundation: From Workshop to 80% National Market Share
Xiaobao Village, located in Shenze County, Shijiazhuang, has two-thirds of its households engaged in the fabric industry, with over 430 registered enterprises. Its model is deeply integrated with the Yiwu market: many Yiwu fabric dealers source from Xiaobao or outsource production orders to the village. This collaboration has allowed Xiaobao's products to capture over 80% of the national market share, earning it the reputation of 'South Yiwu, North Xiaobao.'
This division of labor means Xiaobao is not a low-end processing base. It leverages Yiwu's vast distribution network for scale orders while maintaining cost advantages through localized production clusters. For buyers, this translates into superior cost-effectiveness and supply stability.
Exhibition: New Product Iteration and Branding Signals
The 9th Xiaobao Fabric Exhibition, held on July 26 at the 40,000-square-meter Hongbai Home Textile Market, gathered over 170 factory direct-sale stores. The exhibition featured over 1,000 new products across 20 categories, including sofa cushions, bedding, throw pillows, tablecloths, aprons, curtains, and air-conditioner covers. Most products were market debuts. Accessories like embroidered yarn, embroidered fabric, and water-soluble lace were also showcased.
Notably, several exhibitors emphasized branding. For example, Shijiazhuang Milai Home Furnishing launched over 100 new throw pillow styles, with buyers attracted to its sub-brands like 'Jilida,' 'Laiboni,' and 'Landaidi.' Other brand stores like Dongzhisheng and Boyuan Home Textile also saw heavy foot traffic. This signals a shift from white-label production to brand building, a critical step for moving from scale competition to value competition.
Policy and Market: The Challenge of Two-Legged Growth
On the exhibition's opening day, officials from Hebei Province, Shijiazhuang's industrial authorities, and the local textile industry association visited to discuss strategies for deepening domestic market penetration and expanding overseas. This reveals two priorities: there is still room for domestic growth, and overseas markets represent a clear incremental target.
For foreign trade companies, Xiaobao's product mix (home fabrics, accessories) aligns well with demand in the Middle East, Southeast Asia, and Africa. The challenge lies in replicating its agile e-commerce supply chain for cross-border scenarios and addressing branding, compliance, and certification issues. This requires coordinated efforts from local government, industry associations, and enterprises.
Data-Driven Industrial Logic
Xiaobao's success is essentially a victory of the 'industrial cluster + e-commerce' model. Deep collaboration with Yiwu ensures stable orders, while factory-direct stores eliminate intermediaries, passing cost advantages to end consumers. The 2025 e-commerce sales of over 700 million RMB indicate that online channels have become its core growth engine, with livestreaming elevating the 'Xiaobao Fabric' regional brand to a national audience.
However, risks exist: over-reliance on Yiwu for order allocation may weaken its own pricing power, and branding is still nascent, with most firms competing on price. Moving forward, Xiaobao must balance cost advantages with R&D investment and brand building to avoid a race to the bottom.