While most Keqiao fabric merchants still fight over pennies per meter, a quiet upgrade battle is underway in the Dong Sheng Road specialty zone. A merchant that started with school uniform fabrics has pushed its product prices to the 100-600 RMB range over a decade, simultaneously running two product lines with distinct positioning. This is not simple category expansion but a combination of supply chain reuse, digital tools, and customer segmentation.
The Logic Behind Dual Brands
Qiting, launched in 2013 and registered in 2014, initially built its business on basic school uniform fabrics at the East Market, accumulating stable customers and supply chain resources through consistent quality control. In 2018, as profits from conventional fabrics declined, the company chose a bifurcated strategy: one brand focused on outdoor functional fabrics, while the new brand Haoli targeted high-end business menswear. Both brands share warehousing and production, yet operate independently at the market end—Qiting holds the mass outdoor segment, and Haoli targets clients with demanding requirements for materials and craftsmanship. This 'one supply chain, two brands' structure essentially uses scale to dilute costs while locking in different profit tiers through differentiated positioning.
Plant Dyeing and Digitalization: Twin Engines for High-End Upgrade
Haoli's product strategy directly addresses industry pain points: all fabrics use natural fibers like wool, silk, and lyocell, with colors derived entirely from plant extracts, abandoning chemical dyeing. This positioning precisely meets the dual demands of high-end menswear brands for environmental friendliness and texture, avoiding the red ocean of conventional fabrics. More critical is delivery capability—relying on a 15,000-square-meter shared warehouse, stock orders can ship within an hour, and custom order cycles are compressed to 3-10 days. Such speed is uncommon in the high-end fabric sector, meaning buyers can significantly reduce inventory risk.
Digitalization is another hidden moat. Haoli has logged core fabrics like waffle, air layer, and pique into the AI Fabric mini-program, allowing designers with sample swatches to quickly match identical or similar fabrics. In the past, manual matching and color card comparison took hours; now remote clients can obtain precise solutions quickly. For high-end orders that rely on version and texture, this efficiency directly translates into higher conversion rates. The soon-to-open AI Fabric Experience Hall will further bring smart measuring, 3D virtual fitting, and garment simulation into offline spaces, extending fabric display from physical to virtual and reducing customer decision costs.
A Model for Industrial Upgrading
The synergy of dual brands is becoming evident: the outdoor line has introduced Italian imported raising machines to boost capacity, export channels cover Europe and the US with fluorine-free environmental standards, and domestic partnerships include an 8-10 year collaboration with Qiaodun, plus brands like Xiaobeibei and Little Zebra. These resources flow bidirectionally, opening high-end menswear customer channels for Haoli. According to the company, overall performance improved significantly last year, and order growth remains optimistic this year.
For Keqiao and the broader textile industrial belt, this case proves that traditional fabric markets are not destined for low-price competition. When profits from conventional categories peak, building premium through segmented scenarios, process upgrades, and digital services is entirely feasible. For small and medium merchants, rather than competing on price in a stagnant market, the Haoli approach—choosing a small but refined track and building barriers with supply chain depth and response speed—offers a viable path.