While most Keqiao fabric merchants are still stuck in price wars over conventional products, a dual-brand experiment in the Dongsheng Road district is carving out a different growth curve. Qiting and Haoli Textiles—one holding the school uniform base, the other targeting high-end menswear—share the same supply chain but serve two distinct markets. This approach reflects a deeper understanding of differentiation among Keqiao merchants.
Background
The experiment began in 2013 when Qiting set up shop in the East Market, focusing on school uniform base fabrics and building a loyal customer base through strict quality control. By 2018, as margins on conventional fabrics shrank and competition intensified, the brand split: it doubled down on functional outdoor fabrics while launching Haoli Textiles to target high-end business menswear. This move essentially separated 'mass' and 'niche' into two baskets, avoiding internal cannibalization.
Equally telling is the location strategy. Qiting was among the first tenants in the first phase of the Dongsheng Road outdoor functional fabric zone, while Haoli opened an independent booth in the second phase. Dongsheng Road attracts brand owners, e-commerce sellers, and independent designers who demand finer fabrics and offer higher conversion rates. For Haoli, this is far more efficient than waiting for walk-ins in traditional markets. Two booths, two tracks, yet sharing the same supply chain and warehousing—a cost optimization in itself.
Industry Impact
Haoli's differentiation starts with its products. It uses all-natural fibers like wool, silk, and lyocell, and replaces chemical dyeing with plant extraction. This pushes prices to 100-600 RMB per meter, deliberately avoiding low-end price competition. For buyers, this means environmental claims are tangible; for factories, it's a shift from volume to value.
Supporting these premium prices is a self-owned factory and 15,000 square meters of warehousing. Stock items handle small urgent orders, while custom orders take 3-10 days, with fastest shipping in one hour. Such speed is rare in premium fabrics. More critical is the adoption of digital tools. Haoli participated in the AI Fabric mini-program's digital fabric initiative, cataloging core fabrics like waffle, health knit, double jersey, mesh, air layer, and pique. Previously, designers comparing swatches was time-consuming; now the system matches similar fabrics instantly, easing remote communication with overseas clients. For high-end customers, this is not just efficiency but proof of service capability.
The synergy of dual brands is still unfolding. The outdoor fabric line has imported Italian napping machines, boosting capacity and bargaining power; exports target Europe and America, meeting EU standards for fluorine-free environmental protection. Long-term domestic partners like Qiaodun, Xiaobeibei, Yingqi, and others funnel customers to Haoli's high-end menswear business. Last year's performance improved notably, and this year's order momentum remains strong. This shows that differentiation is not isolated but requires supply chain, digitalization, and channel support.
Practical Advice
For Buyers - Prioritize suppliers with digital matching capabilities; quick fabric search shortens sampling cycles. - Verify plant-dye and natural fiber certifications to ensure traceable environmental claims. - Leverage both stock and custom models: small urgent orders test market response; custom orders secure long-term collaboration.
For Exporters - Align with EU fluorine-free environmental standards and complete compliance certification early—this is a key to European and American markets. - Adopt a dual-brand strategy: volume products for cash flow, premium products for profit, balancing risk and reward. - Invest in digital fabric archives to enhance remote service and reduce sample shipping and communication costs.
From school uniforms to light luxury, Keqiao merchants are proving that low prices are not the only way. When supply chain, digitalization, and brand positioning are aligned, differentiation becomes tangible profit.