Hailan home: create a complete new model of the industrial chain to help marketing

Hailanhe Group began its journey in the wool spinning industry and expanded into the garment sector in the mid-1990s. After over a decade of rapid growth, the company quickly established itself as a key player in China's domestic apparel market, becoming one of the largest high-end men's clothing production bases. The group achieved an annual production capacity of 3 million suits, 4 million shirts, and 15 million meters of premium fabric. Since 2002, Hailanhe has consistently ranked among the top 5 in the "Top 100 Double Top 500" list for sales and profits in the Chinese apparel industry for seven consecutive years. As a pioneer in the transformation from textile manufacturing to fashion branding, Hailanhe successfully integrated its upstream fabric production with brand development. In 2002, the brand "Hailan House" was launched, marking a new era for the company. Unlike traditional clothing brands, Hailan House evolved into a marketing-driven, service-oriented, and retail-focused brand. It positioned itself with a "high-quality, mid-price" strategy, targeting the mass consumer market. This success was driven by Hailanhe’s innovative approach to garment design, starting from the highest quality wool and building a complete supply chain from ranch to finished product. Each stage of the process was controlled internally, creating a unique model known as "ranch - factory - buy market." This system enabled effective cost and quality control. The "Hailan House" concept introduced a new shopping experience. With stores ranging from 200 to 1,000 square meters, they offered a full range of men's clothing for all ages, from 18 to 100. The brand abandoned the traditional "man-to-man" sales model, instead offering a relaxed, non-intrusive shopping environment that emphasized convenience and style. It became a true "one-stop" shopping destination. In 2006, Hailan House won the prestigious "Marketing Award" at the 2004–2005 China Apparel Brand Grand Prize, often referred to as the "Oscars" of the Chinese fashion industry. The brand also adopted a fully managed franchise model, where all store operations were handled by Hailan House’s dedicated team. Franchisees could focus on their business without worrying about daily management. With nearly 1,300 stores nationwide, more than 90% of which were opened in 2006, Hailan House achieved sales of nearly 1 billion yuan, securing the top position in men’s clothing sales in Jiangsu Province. Its innovative strategies and strong brand identity have made it a leading force in China’s fashion industry.

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