One in every five sweaters worldwide is produced in Dalang, Dongguan, a figure underpinning a 72-billion-yuan annual transaction value across the entire industrial chain. At the 95th International Wool Textile Conference, data from the China National Textile and Apparel Council (CNTAC) highlighted the power of industrial clustering. More critically, as natural fibers meet digital technology, the wool textile sector is shifting from traditional manufacturing to a new paradigm driven by intelligence and experience.
The Stability and Stress of Industrial Clusters
Dalang, as a renowned Chinese wool knitting town, produces over 900 million garments annually. CNTAC President Sun Ruizhe noted at the conference that China processes over 60 million tons of fiber and produces more than 70 billion garments each year, accounting for over 50% of the global total. This scale makes China not only a stabilizer of global supply chains but also a testing ground for industrial innovation.
However, data also reveal structural pressures. From January to April 2024, revenue of textile enterprises above designated size fell 0.3% year-on-year, while total profits surged 19.3%, with a profit margin of only 2.9%. This "revenue growth without profit growth" reflects rising costs and price competition. Meanwhile, from January to May 2025, fixed-asset investment in the textile industry rose 10.8%, but the garment and chemical fiber sectors dropped 10.3% and 14.5%, respectively. This imbalance signals ongoing capacity adjustments and value restructuring.
Intelligent Economy: From Concept to Production
The conference theme "Smart Weaving the Future" is not empty rhetoric. Sun cited multiple cases of smart manufacturing: Jiangsu Yueda Textile's "Lighthouse Factory" reduced labor per 10,000 spindles by about 70% and increased labor productivity fourfold while cutting energy consumption by 15%. Semir's AI-assisted design system improved overall design efficiency by 35% and pattern design efficiency by over 200%. These data show that intelligent technology has moved from proof-of-concept to large-scale application.
A deeper change lies in the recombination of production factors. The global AI market is expected to reach $757.58 billion in 2025, up 18.7% year-on-year. As "tokens" become a new production factor, competition logic shifts from "scale efficiency" to "token efficiency." This means the core competitiveness of wool textile enterprises is no longer just yarn quality or delivery speed, but data governance and algorithm application. The case of Anoky is illustrative: it has expanded from dye production to digital printing, AI design, and even IP cultural products, building a data-driven industrial ecosystem.
Experience Economy: A New Battlefield of Consumption
Global consumption is undergoing ecological restructuring. Consumer tiers are becoming more distinct, with health, emotional connection, and self-expression as core demands. The International Wool Textile Organization (IWTO) chose "Wool Health and Digital Life" as the conference theme, reflecting this trend. The eco-friendly and health attributes of natural fibers are finding new premium space amid consumption upgrades.
But challenges persist. The IMF has lowered its 2026 global growth forecast to 3.1%, with geopolitical conflicts and shipping disruptions increasing supply chain uncertainty. From January to May 2025, China's textile and apparel exports grew only 0.1% year-on-year, with apparel exports down 1.6%. This means relying solely on export volume is unsustainable; enterprises must compete through brand premiums or differentiated products.