How thin can the profit margin on a school uniform fabric be? Keqiao's Dongsheng Road merchant Haoli Textiles answers: rather than fighting a price war in the low-end market, leap upward. Leveraging the supply chain built by sister brand Qiting since 2013, Haoli uses natural fibers and plant dyeing to enter high-end menswear, with fabric prices firmly in the 100-600 RMB range—several times that of ordinary school uniform fabrics.
Differentiated Positioning: From Mass Market to Niche Blue Ocean
Keqiao China Textile City is a global fabric distribution hub, but the Dongsheng Road zone is becoming a testing ground for differentiation. Qiting, registered in 2014, started in the East Market focusing on school uniform base fabrics, building customer trust through quality control. In 2018, as competition intensified and profits on conventional fabrics shrank, the brand made a pivotal split: Qiting focused on functional outdoor fabrics, while new brand Haoli targeted high-end business menswear, operating under a dual-brand structure.
The strategic depth lies in customer segmentation. Phase I of Dongsheng Road gathered outdoor fabric merchants; Phase II attracted brands, e-commerce sellers, and designers with more demanding requirements. Haoli's general manager Li Zhenxiong notes that order conversion is higher here, making it an ideal platform for premium business. For buyers, this means Keqiao is no longer just about commodity fabrics—specialized zones are creating landmark effects for niche categories.
Supply Chain and Digitalization: Dual Engines for Upgrading
Premium positioning isn't just a slogan; it's backed by supply chain strength. Haoli uses pure natural fibers like wool, silk, and lyocell, replacing chemical dyeing with plant extraction. This process is not only eco-friendly but also creates technical barriers—colorfastness and batch consistency require long-term refinement. The integrated factory provides 15,000 square meters of warehousing, with stock for small urgent orders and custom lead times of 3-10 days, enabling dispatch as fast as one hour.
Digitalization is another key lever. Haoli participated in the AI Fabric mini-program, digitizing core fabrics like waffle, air layer, and pique. For high-end clients who often bring sample swatches, the system now matches similar fabrics with one click, greatly improving efficiency. For factories, this shifts from passive order-taking to proactive service—digital tools reduce communication costs and facilitate remote overseas client coordination.
Dual-Brand Synergy and a Model for Industrial Upgrading
The value of dual brands lies in resource sharing. Qiting's outdoor fabric line uses Italian import napping machines, expanding capacity and bargaining power; export channels cover Europe and America, meeting EU-standard fluorine-free environmental requirements. Long-term domestic partnerships with brands like Qiaodun (8-10 years), Xiaobeibei, and Xiaozhubanna provide customer resources that can be cross-leveraged to open channels for Haoli.
Two years post-transition, performance has improved notably, with order growth promising. This case offers insight for Keqiao and the broader textile belt: traditional merchants need not stay trapped in low-price competition. Through category segmentation, process upgrades, and digital tools, they can carve out high-value-added tracks. The upcoming AI Fabric Experience Center on Dongsheng Road, featuring smart body measurement, 3D virtual fitting, and fabric visualization, will further bridge online and offline channels, providing new display and customer acquisition opportunities.