One in every five sweaters worldwide is produced in Dalang, Dongguan. Behind this statistic lies an industrial cluster with annual transactions exceeding 72 billion yuan and an annual garment output of over 900 million pieces. On June 24, the 95th International Wool Textile Conference convened here, sending signals that extend far beyond 'wool' itself, pointing to the industry's new positioning at the intersection of the smart economy and the experience economy.
The Data Code of an Industrial Powerhouse
Dalang's significance lies in its encapsulation of China's textile industry's shift from scale expansion to value upgrading. Data from the China National Textile and Apparel Council shows that China's annual fiber processing volume remains stable at over 60 million tons, with annual garment production exceeding 70 billion pieces, both accounting for more than 50% of the global total. Exports have surpassed $300 billion for six consecutive years, with strong exports of intermediate goods like chemical fibers and fabrics providing solid support for global supply chain stability.
More noteworthy, however, are the structural changes. From January to April this year, revenue of enterprises above designated size fell 0.3% year-on-year, but total profit surged 19.3%, with a revenue profit margin of 2.9%. This indicates that the industry is achieving 'selling less but earning more' through efficiency gains and product mix optimization. During the same period, retail sales of garments, shoes, hats, and knitwear by units above designated size totaled 512.13 billion yuan, up 8.1%, showing that domestic demand is providing a buffer.
Smart Economy: From 'Machine Substitution' to 'Paradigm Reconstruction'
The conference theme, 'Weaving a Smart Future: Wool's Health and Digital Life,' is not hollow rhetoric. AI is permeating from design to production, quality inspection, and supply chain management. Take Jiangsu Yueda Textile's 'Lighthouse Factory' as an example: labor per 10,000 spindles has dropped by about 70%, total labor productivity has more than quadrupled, unit energy consumption has fallen by 15%, and processing costs have decreased by 26%. Semir's AI-assisted design system has boosted overall design R&D efficiency by 35%, with pattern design efficiency improving by over 200%. Bosideng's 'AI Aesthetic Brain' has cut sample development costs by more than 60%.
These cases reveal a trend: investment in smart manufacturing is shifting from 'optional' to 'mandatory.' For the wool industry, the irreplaceability of natural fibers (e.g., comfort, breathability, renewability) combined with the quantifiable advantages of digital technology (e.g., precision dyeing, flexible production, inventory optimization) is creating new competitive barriers. Companies that fail to invest in 'Token efficiency'—the output efficiency of human-machine collaboration—risk being squeezed out of high-end supply chains.
Consumer Side: How the Experience Economy Forces Upgrading
Global consumer markets are showing characteristics of ecological restructuring, human-centered regression, and structural differentiation. Consumers are no longer satisfied with just 'a sweater'; they seek health, emotional connection, and self-expression. Social media accelerates information generation and dissemination, making product discovery, comparison, and decision-making increasingly intelligent. This means wool companies must shift from 'selling fabric' to 'selling solutions'—for example, tracing wool origins via blockchain, personalizing styles through AI, and strengthening brand premiums through eco-certifications.
The success of the Dalang model lies precisely in its closed-loop ecosystem of 'design-production-sales-logistics.' The annual transaction value of over 72 billion yuan for the entire industrial chain is underpinned by data sharing and rapid response capabilities among upstream and downstream enterprises. In the experience economy era, such clustering effects will become even more prominent: those who can translate consumer preferences into products faster will gain the upper hand in fragmented markets.
Challenges and Resilience: The 'Dalang Sample' for Global Supply Chains
From January to May this year, textile and apparel exports reached $116.73 billion, up 0.1% year-on-year. Textile exports (including fabrics and yarns) grew 1.7% to $59.48 billion, while apparel exports fell 1.6% to $57.24 billion. Export growth has slowed, but the resilience of intermediate goods significantly exceeds that of finished garments, reflecting a trend of 'de-garmenting' in global supply chains: brands prefer to source semi-finished products for local production to reduce tariffs and logistics risks.
For wool enterprises, this means export structures need adjustment: the profit margin from exporting sweaters alone is shrinking, while exporting high-end wool fabrics and functional yarns commands higher bargaining power. Meanwhile, the divergence in fixed asset investment is noteworthy: from January to May, investment in the textile sector grew 10.8%, while that in the garment and chemical fiber sectors fell 10.3% and 14.5%, respectively. This suggests capital is concentrating in technology-intensive segments, while labor-intensive garment manufacturing faces relocation pressure.