One in every five sweaters worldwide is produced in Dalang, Dongguan, a wool knitting town with an annual transaction value exceeding 72 billion yuan. The town just hosted the 95th International Wool Textile Conference, whose theme directly addresses a critical industry issue: as natural fibers meet digital technology, the wool textile sector stands at a crossroads, transitioning from scale-driven dividends to a dual engine of intelligence and experience economy.
Industry Foundation: Structural Divergence Amid Scale Advantages
Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), presented key data during the conference: China's textile industry processes over 60 million tons of fiber annually, produces more than 70 billion garments per year, accounting for over 50% of global totals. Exports have exceeded $300 billion for six consecutive years, with strong exports of intermediate products like chemical fibers and fabrics stabilizing global supply chains.
However, data from the first four months of this year reveals complexity. Revenue of enterprises above designated size fell 0.3% year-on-year, while total profit surged 19.3%, with a profit margin of 2.9%. This suggests the industry is offsetting revenue pressure through efficiency gains and structural optimization. Yet investment divergence is stark: fixed asset investment in the textile sector grew 10.8%, while that in apparel and chemical fiber sectors fell 10.3% and 14.5%, respectively. This indicates capital is shifting from traditional garment manufacturing and chemical fibers toward higher-value textile segments.
Intelligent Economy: Reshaping Production, Factors, and Ecosystem
The core message from the conference is that the intelligent economy is fundamentally altering the competitive logic of the wool textile industry. Sun Ruizhe noted that AI is accelerating integration into the entire value chain, from design and production to management, with change moving from concept to implementation, as seen in 'lighthouse factories' and 'digital employees.'
A noteworthy case is Jiangsu Yueda Textile's 'lighthouse factory.' Through smart manufacturing, its labor per 10,000 spindles dropped by about 70%, total labor productivity increased more than fourfold, unit energy consumption fell by 15%, and processing costs decreased by 26%. This data implies that for wool textile companies, intelligentization is no longer optional but a new baseline for cost and efficiency competition.
Another dimension of the intelligent economy is factor restructuring. AI Agents are entering the workforce in batches as new digital labor. IDC predicts that by 2030, billions of AI Agents will join the workforce. For the wool textile industry, this means many repetitive roles—from design and sampling to quality inspection and inventory management—will be redefined. Companies need to plan for talent structure transformation in advance to avoid the dilemma of having equipment but no skilled personnel.
Experience Economy: Consumer End Pushing Upstream Upgrades
The conference theme 'Wool’s Health and Digital Life' directly addresses changes on the consumer side. The global consumer market is characterized by ecological restructuring, a return to human-centric values, and structural divergence. Consumers are no longer just buying a sweater; they are purchasing health, emotional connection, and self-expression. Social media accelerates information dissemination, and product discovery, comparison, and decision-making are becoming increasingly intelligent.
This imposes new requirements on the supply chain capabilities of wool textile enterprises. Small batches, multiple styles, and quick response have become standard. The conference cited Semir's AI-assisted design system, which improved overall design efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. These cases demonstrate that in the experience economy era, design efficiency and data-driven decision-making are becoming core competencies for brands and factories.