One out of every five sweaters worldwide is made in Dalang, Dongguan. This wool textile hub, with an annual industrial chain transaction value exceeding 72 billion RMB, hosted the 95th International Wool Textile Organization (IWTO) Congress on June 24. The core signal from this year's event is clear: competition in the wool industry is shifting from volume and price to carbon footprint and standard-setting power.
The Battle for Standards: The Green Paper as a New Anchor
The most anticipated agenda item was the global launch of the 'IWTO Wool Green Paper'. This document is not merely an industry report; it aims to establish a unified traceability data system across the entire supply chain, providing a benchmark for wool carbon footprint accounting. The driving force behind it is clear: the industry faces its greatest challenge in the form of data that critics say deliberately exaggerates wool's negative environmental impact. A new generation of consumers, influenced by one-sided information, directly links animal husbandry with high carbon emissions, putting wool's natural, biodegradable advantages on the defensive in public opinion.
The release of the Green Paper signals that the global wool industry has begun to actively reclaim its narrative. Subsequent actions include developing region-specific carbon footprint standards, establishing wool durability standards, and forming a natural fiber industry alliance. Once implemented, these measures will directly impact the export compliance costs of Chinese wool enterprises—markets like the EU are imposing increasingly stringent environmental footprint requirements for textiles, and natural fibers without unified standards risk being marginalized by synthetics.
The Dalang Model: Transformation Pressures from OEM Hub to Rule Participant
Dalang's wool textile industry has developed over four decades, with products exported to over a hundred countries. However, the IWTO chose Dalang for this congress not only for its scale—'one out of every five sweaters worldwide is made in Dalang'—but also for its ongoing transformation towards intelligence, green practices, and branding. The Deputy Chairman of the Dongguan CPPCC explicitly stated that Dalang is upgrading from 'OEM production' to 'cultural empowerment and independent brands'.
This transformation is no easy path. Data from the China Wool Textile Association shows that China possesses the world's largest wool processing capacity, importing large volumes of raw wool annually and exporting various wool products. However, rising trade protectionism and the fragmentation of global supply chains directly impact this model. Dalang's resilience lies in its complete industrial ecosystem—from raw material processing to product design, from manufacturing to trade circulation. This cluster effect mitigates fluctuation risks in any single link. But to gain the upper hand in the next phase, Dalang must shift from a cost advantage to a standards advantage.
Youth and Technology: Two New Variables in Supply Chain Collaboration
For the first time, this year's congress highlighted the 'Wool Youth Project' as an independent segment. Dozens of young representatives from different countries took the stage to introduce their respective business fields. The industry intent behind this arrangement is clear: the wool sector faces a talent gap. The new generation of practitioners needs to build networks across geographical boundaries and, more importantly, understand the logic of the industry's transformation from an ancient craft to a technology-driven one.
Concurrently, technology, culture, and green practices have been identified as the three main directions for Dalang's industrial empowerment. On the technology front, smart manufacturing and digital transformation were repeatedly emphasized. On the cultural front, a company from Tibet showcased a 'platform + workshop + school' model, combining highland yak wool with intangible cultural heritage techniques, offering a new path for product differentiation. This approach of blending tradition and innovation is becoming an irreplaceable source of added value in the global wool supply chain.