Xuzhou No. 1 Warehouse Clothing Co., Ltd. is located in Xuzhou, a city often referred to as the "throat of China's railway." This strategic location has made it historically significant for military and commercial activities. The company has carved out a unique niche in the market by focusing on authentic full-size jeans, specifically targeting the low-end segment in China. With a deep specialization in denim, the brand has built a reputation for quality, affordability, and consistency.
The business model primarily revolves around franchising. In addition to the company’s own six stores, there are over 300 outlets nationwide under the "No. 1 Warehouse" brand. Each store operates with a clear and consistent strategy, ensuring that customers receive professional service and high-quality products at an affordable price. For franchisees, this model offers stability and steady returns, making it an attractive investment opportunity.
At the heart of the company is its general manager, Liu, who is known for her down-to-earth, practical approach. Her personality is reflected in every aspect of the business — from store design to website layout, everything is simple, clear, and focused. The goal is not just to sell jeans, but to create a brand that people trust and remember.
As Mengniu Chairman Niu Gensheng once said, “Business success comes from small victories through wisdom, and true victory through virtue.†This philosophy guides the company’s operations. The "1 Warehouse 38 Yuan Denim Chain" focuses on serving the mass consumer market with a strong emphasis on value and quality.
Key aspects of their business model include:
**A: Price Positioning**
- Fixed pricing structure: Only two prices are offered — 38 yuan and 48 yuan.
- 66% of products are priced at 38 yuan, catering to young people and those with specific needs.
- 33% of products are priced at 48 yuan, offering more variety and style.
**B: Target Customer Base**
- Mainly aimed at middle and lower-income consumers aged 20–50.
- Both male and female customers are welcomed, with a focus on cost-conscious buyers.
**C: Professionalism**
- The stores specialize exclusively in jeans, avoiding other product lines.
- This focus allows for greater expertise and customer recognition — when someone wants jeans, they think of No. 1 Warehouse.
**D: Quality & Value**
- While positioned in the low-end market, the quality remains above average.
- The brand emphasizes high-quality, low-cost denim, making it a competitive choice.
**E: Low-Cost Strategy**
- The company rejects traditional high-margin models, instead adopting a low-cost, high-turnover approach.
- Profits per pair are small, but the volume ensures sustainable growth.
- By eliminating intermediaries and operating directly from factory to retail, the brand maintains a strong cost advantage.
**F: Profitability for Franchisees**
- Despite low profit margins per item, the high volume ensures that franchisees can earn a fair income.
- The model is designed to benefit both customers and partners.
In short, "No. 1 Warehouse" isn’t just a clothing store — it’s a lifestyle. A place where people come to find quality denim at an unbeatable price. With a wide range of styles, consistent quality, and a strong brand identity, it has become a trusted name in the jeans industry. Whether you're looking for casual wear or something more stylish, this is the go-to destination for denim lovers.
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