One in every five sweaters worldwide comes from Dalang, Dongguan. Behind this statistic lies an industrial cluster producing over 900 million garments annually, with a full-industry-chain transaction value exceeding 72 billion yuan. In late June, the 95th International Wool Textile Conference was held in Dalang, signaling a clear shift: the wool industry is transitioning from traditional manufacturing to a composite track integrating technology, health, and digitalization.
Industry Fundamentals: Scale and Resilience
Sun Ruizhe, President of the China National Textile and Apparel Council, disclosed key data at the conference: China's annual fiber processing volume remains stable at over 60 million tons, and annual garment production exceeds 70 billion pieces, both accounting for more than 50% of the global share. Textile exports have exceeded 300 billion US dollars for six consecutive years, with strong performance in intermediate goods like chemical fibers and fabrics providing critical support for global supply chain stability.
In the first four months of this year, revenue of textile enterprises above designated size slightly decreased by 0.3% year-on-year, but total profit surged by 19.3%, with a profit margin of 2.9%. This indicates the industry is achieving 'revenue decline with profit growth' through product structure upgrades and cost control. During the same period, retail sales of clothing, shoes, hats, and knitwear by units above designated size totaled 512.13 billion yuan, up 8.1% year-on-year, showing moderate recovery in domestic consumption.
Technology Variable: Smart Manufacturing Reshapes Cost Curves
The conference's emphasis on 'intelligent weaving' is no empty talk. The digitalization rate of key industry links has reached 63.2%, higher than the national manufacturing average. The case of Yueda Textile's 'lighthouse factory' is illustrative: through smart manufacturing, labor per 10,000 spindles decreased by about 70%, total labor productivity increased more than fourfold, unit energy consumption dropped by 15%, and processing costs fell by 26%. This means the traditional image of wool mills being 'labor-intensive and inefficient' is being rewritten.
Another noteworthy trend is AI's penetration into design. Semir's AI-assisted design system boosted overall R&D efficiency by 35% and pattern design efficiency by over 200%; Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. For wool products, which emphasize patterns and textures, cost compression and faster response times from AI will directly impact brand buyers' order decisions.
Consumption and Channels: Experience Economy Reshapes Value Chains
Current global consumer markets show characteristics of 'ecological reconstruction, human-centric return, and structural differentiation.' Consumer demand for health, emotional connection, and self-expression is forcing wool enterprises to shift from selling raw materials to selling experiences. The combination of natural fibers and digital technology allows the health attributes of wool products to reach target audiences more precisely.
Export data confirms structural changes. In the first five months of this year, total textile and apparel exports reached 116.73 billion US dollars, up 0.1% year-on-year. Textile exports were 59.48 billion US dollars, up 1.7%; apparel exports were 57.24 billion US dollars, down 1.6%. The resilience of intermediate goods exports over finished goods suggests the global supply chain is still adjusting, and China's position as a fabric supplier has become more stable.