A village of just over 700 households in North China generated over 700 million yuan in fabric sales in 2025, commanding more than 80% of the national market. The 9th Xiaobu Fabric Exhibition, which opened on July 26 in Shenze County, Shijiazhuang, showcased over 20 product categories and thousands of new items, most of which were debuting. On the first day, buyers from Liaoning, Tianjin, Henan, Shandong, Shanxi, and the Jiangsu-Zhejiang region attended, with many placing orders on the spot.
Industrial Cluster Effect: From Workshops to Factory-Direct Stores
Two-thirds of Xiaobu's households are involved in the fabric business, with over 430 registered enterprises. The 40,000-square-meter Hongbai Home Textiles Market houses more than 170 factory-direct stores, creating a 'front-store, back-factory' model that eliminates middlemen and allows factories to directly sense end-user demand. The product range has expanded from sofa cushions and bedding sets to tablecloths, aprons, door curtains, piano covers, and air conditioner covers, covering almost every corner of home textile soft furnishings. The introduction of embroidery lace and water-soluble lace as supplementary materials signals an upstream integration into the fabric supply chain, which can improve profit margins.
For buyers, this one-stop, full-category supply capability significantly reduces sourcing costs. A Henan buyer at the Milai Home store noted that the brand's strong reputation ensures quick sell-through. This positive feedback loop within the industrial cluster drives continuous R&D and repeat purchases, solidifying market share.
Channel Transformation: E-commerce and Livestreaming Drive 700 Million Yuan
Xiaobu's e-commerce and livestreaming sales alone exceeded 700 million yuan in 2025. This reflects the deep embrace of digital channels by a traditional fabric cluster. Many fabric merchants in Yiwu source directly from Xiaobu, and most Yiwu factories outsource production orders to Xiaobu, making it an extension of Yiwu's supply chain. Livestreaming allows factories to bypass wholesalers and reach consumers directly, boosting margins but also demanding rapid response to trending products. The fact that Milai Home alone launched over 100 new cushion styles on the first day shows that Xiaobu's factories have adapted to this fast pace.
However, over-reliance on e-commerce platforms carries risks. If platform rules change or traffic costs rise, profits may shrink. During the exhibition, officials from Hebei's industry authorities and the textile industry association visited to discuss paths for deepening domestic markets and expanding overseas. This suggests that the next growth phase for Xiaobu may lie in cross-border e-commerce and international wholesale channels.
Brand Building: From White-Label to 'Golden Card'
Xiaobu has been recognized as a national 'One Village, One Product' model village and a billion-yuan rural specialty industry village. But as a regional public brand, 'Xiaobu Fabric' is still in its early branding stage. At the exhibition, sub-brands like Milai Home's Jilida, Laiboni, and Lanhaidi attracted buyers, indicating that leading companies have started brand operations. However, for over 430 enterprises, avoiding homogenization and building differentiated brand identities remain critical. Stores like Dongzhisheng, Boliyuan Home Textiles, and Yonghe Fabric were crowded with customers, showing that branding is beginning to pay off. Still, most products remain mid-to-low end, limiting brand premium.