One out of every five sweaters globally is produced in Dalang, Dongguan. Behind this statistic lies an industrial scale of over 900 million garments annually and a total industrial chain transaction value exceeding 72 billion yuan. On June 24, the 95th International Wool Textile Conference opened here, and Sun Ruizhe, President of the China National Textile and Apparel Council, delivered a keynote speech outlining a clear path for the digital future of the wool industry.
Industrial Clustering and Scale Effects
Dalang's industrial status is no accident. Relying on a complete wool knitting industry chain—from raw material procurement and design prototyping to production and sales—it has formed an efficient collaborative network. This clustering effect has made Dalang a key node in the global wool supply chain and an ideal window for observing industry trends. Sun noted that China's textile industry processes over 60 million tons of fiber annually, produces more than 70 billion garments per year, and has exported over 300 billion USD for six consecutive years, forming the bedrock of global supply chain stability.
However, scale advantages are not static. Global economic growth is slowing, with the IMF lowering its 2026 global growth forecast to 3.1%. Geopolitical conflicts and energy volatility add uncertainty. From January to April 2025, revenue of large-scale textile enterprises fell 0.3% year-on-year, but profits rose 19.3%, indicating that the industry is offsetting external pressure through efficiency gains.
Intelligent Economy Reshapes Production Paradigm
The conference theme, 'Smart Weaving the Future: Wool's Health and Digital Life,' hits the mark. Sun emphasized that artificial intelligence is penetrating the entire chain from design to production and management. The global AI market reached 757.58 billion USD in 2025, expected to exceed 900 billion USD by 2026. China's daily token calls surpassed 140 trillion, up over 40% from end of last year—the intelligent economy is no longer a distant vision but a present reality.
For the wool industry, smart manufacturing is accelerating. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, quadrupled labor productivity, cut energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-aided design system boosted design efficiency by 35% and pattern design by over 200%. These cases show digital transformation is no longer optional but a core determinant of competitiveness.
For wool enterprises, this means rethinking production processes. Traditional high-labor, low-efficiency models are being replaced by smart workshops, AI quality inspection, and flexible manufacturing. Sun noted that the industry's key process digitalization rate reached 63.2%, above the national manufacturing average, with 30 textile firms on the 5G factory list in 2024. The trend is clear: those who complete digital transformation first will gain advantages in cost and quality.
Experience Economy Drives Consumption Upgrade
Beyond production, consumption-side changes are equally profound. Consumers are increasingly segmented, with health, emotional connection, and self-expression becoming core demands. Wool products naturally possess health and eco-friendly attributes, and leveraging digital tools to meet these demands is a new challenge for the industry.
Sun pointed out that the global consumer market is undergoing ecological restructuring, with a return to human-centric values. Social media accelerates information dissemination, making product discovery, comparison, and decision-making more intelligent. This means wool brands must shift from 'selling products' to 'selling experiences.' For example, using AI design tools for rapid personalized customization or employing digital twin technology to showcase wool's health benefits are viable paths.
Annuoqi's case is instructive: it deployed AI computing power to build an ecosystem from 'dyes to ink to digital printing to AI design to IP cultural products.' This vertical integration model, digitizing the entire chain from raw materials to end products, offers a cross-sector reference for wool enterprises.