Xuzhou No. 1 Warehouse Clothing Co., Ltd. is based in Xuzhou, a city famously known as the "throat of China's railway." Historically, it has been a crucial strategic location, especially for military operations. Today, the company has carved out its own unique place in the fashion industry, focusing on authentic full-size jeans tailored specifically for China’s low-end market. With such a specialized and refined approach, the brand has built a strong reputation.
The company primarily operates through franchising, with over 300 stores nationwide, including 6 company-owned outlets and more than 380 chain stores under the "No. 1 Warehouse 38 Yuan Denim" brand. The goal is to bring high-quality, affordable jeans to more people, ensuring that both customers and franchisees benefit from a stable and profitable business model.
At the heart of the company is General Manager Liu, a down-to-earth and pragmatic leader. Her straightforward nature is reflected in every aspect of the business — from store design to website layout, everything is simple, clear, and focused. Running a denim shop like this has proven to be rewarding, and the company is committed to helping more people grow their income through these stores.
As Mengniu Chairman Niu Gensheng once said, “Business success comes not only from wisdom but also from virtue.†This philosophy guides the brand's approach to the low-end jeans market, aiming to serve the general consumer with quality products at an affordable price.
**Business Philosophy: "1 Warehouse 38 Yuan Denim Chain"**
- **Price Positioning:** The brand maintains a low-end pricing strategy, with fixed retail prices of 38 yuan and 48 yuan. Two-thirds of the products are priced at 38 yuan, while one-third are priced at 48 yuan, catering to young consumers and those with specific needs.
- **Target Customers:** The main audience is the general public aged between 20 and 50, both male and female, who value cost-effective options.
- **Professionalism:** The stores focus solely on jeans, avoiding other product categories. This specialization helps build a strong brand identity, making the store the first choice when customers think about buying jeans.
- **Quality:** While targeting the low-end market, the quality of the jeans remains above average, offering a balance between affordability and durability.
- **Low Cost Strategy:** The brand breaks away from traditional high-profit models by adopting a low-cost sales approach. This not only enhances competitiveness but also ensures that customers get maximum value.
- **Factory Direct Sales:** As a manufacturer, the company sells directly to the end consumer, eliminating middlemen and maintaining a competitive edge in pricing.
- **Small Profits, Big Volume:** Each pair of jeans may have a small profit margin, but the volume of sales makes up for it. This model ensures that both customers and franchisees benefit fairly.
- **Diverse Styles:** With a wide range of styles, the brand caters to a broad demographic, making the store a go-to destination for all denim lovers.
In summary, "No. 1 Warehouse" has become more than just a brand — it's a trusted name in the hearts of many. Through simplicity, clarity, and a deep understanding of the market, the company continues to thrive and expand.
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