At Keqiao China Textile City, the Dongsheng Road outdoor fabric zone is becoming a window into the fabric industry's upgrade. The practices of local merchants Qiting and Haoli Textile show that when conventional fabric profits are squeezed, shifting to high-end and functional products while leveraging digital tools may be a viable path. This case reflects a real shift from scale-based competition to value-based competition in the Keqiao fabric cluster.
Event Background
Qiting brand started operations in 2013 and was formally registered in 2014, initially operating a storefront in the East Market focusing on basic school uniform fabrics, accumulating stable customers through quality control. In 2018, as industry competition intensified and profits for conventional fabrics declined, the brand initiated a strategic transformation: one the one hand, it entered functional outdoor fabrics; on the other, it established Haoli Textile to target high-end business menswear fabrics, forming a dual-brand independent operation pattern. This timing coincides with the price-war pressure commonly faced by merchants in the Keqiao market.
After the transformation, Qiting became one of the first tenants in Phase I of the Dongsheng Road outdoor functional fabric zone, while Haoli set up an independent storefront in Phase II. The Dongsheng Road area has gathered numerous brand owners, e-commerce merchants, and designers, who demand finer fabrics and offer better order conversion efficiency. Haoli Textile General Manager Li Xiongzhen noted that this platform is ideal for developing high-end fabric business.
Industry Impact
Haoli's product positioning is clear: it uses natural fibers such as wool, silk, and lyocell, replaces chemical dyeing with plant-based extraction, and prices fabrics in the 100-600 RMB range, precisely targeting high-end menswear brands and designer orders, avoiding low-end price wars. This differentiated strategy means fabric companies no longer rely solely on scale advantages but build barriers through materials and craftsmanship.
On the supply chain side, Haoli leverages its integrated factory, sharing 15,000 square meters of warehousing, and adopts both stock and custom-order models. Stock can quickly handle small urgent orders, while custom orders are controlled within 3-10 days, and with sufficient inventory, shipment can be achieved within one hour. This responsiveness is crucial for high-end clients who often need rapid sampling or replenishment, which traditional fabric suppliers cannot match.
Digitalization is another key variable. Haoli participates in the AI Cloth mini-program, digitally cataloging core fabrics such as waffle, health knit, double-sided plain weave, mesh, air layer, and pique. Designers or buyers often bring scrap samples to find similar fabrics; previously, manual searching was inefficient, but now the system can quickly retrieve and match, saving time and improving accuracy. For remote overseas clients, digital matching has become an essential tool.
The AI Cloth experience hall in the Dongsheng Road zone is about to trial operation, featuring smart body measurement, 3D virtual fitting, fabric visual creation, and garment simulation. This means fabric display is no longer limited to physical storefronts; designers and brand clients can experience products remotely or online, broadening customer acquisition channels.
The synergy of the dual brands is gradually emerging. The outdoor fabric production line has introduced Italian imported raising equipment to improve capacity and bargaining power; the foreign trade channel targets European and American markets, with exported fabrics meeting EU standards for fluorine-free environmental protection. Domestic long-term clients include Qiaodun (8-10 years), Xiaobeibei, Yingqi, Macedonia, and Xiaozhubanna, with two-way traffic helping Haoli open high-end menswear customer channels. Li Xiongzhen revealed that overall brand performance improved significantly last year, and this year's order growth is expected to maintain momentum.