Sustainability and digitalization are becoming the two core anchors of the global wool industry. On June 26, the three-day 95th International Wool Textile Organization (IWTO) Congress concluded in Dalang, Dongguan. Over 50 global experts discussed the sustainable development and future trends of the wool industry, with full-chain digital traceability from farm to retail emerging as the main theme.
Traceability Moves from Concept to Industrialization
At the congress, Zhang Yudong, Technical Director of the China Wool Textile Association, unveiled the latest progress of China's wool traceability platform. Relying on the national industrial internet identification system, the platform implements a 'one product, one code' system, recording and storing full-process information from farms, factories, and warehouses, and integrating authoritative testing data. This means the credibility of domestic wool is expected to be substantially enhanced through digital means, helping to break through green trade barriers. For buyers, this directly reduces quality risks caused by information asymmetry.
Australia's Wool Exchange, in collaboration with testing agencies, released two core systems: AWSS (Australian Wool Sustainability Scheme) and AWTH (Australian Wool Traceability Hub). The core idea is to integrate existing mature resources such as farm codes and testing grades, avoiding the redundancy and high costs of traditional certification. The scheme aims to connect fragmented data across the entire industry chain, providing a scalable and standardized template for global wool traceability. This reflects that industry giants are shifting from single-point certification to systemic platform building.
On the European front, Jyrki Sura, CEO of Sura & Co, proposed that European wool needs to establish a complete traceability loop from farm shearing to recycling, and called for the creation of a global unified traceability standard covering unified terminology, interoperable digital data, and mutual recognition. This cross-regional coordination need precisely illustrates that the current global traceability system remains fragmented, and unified standards will be a key industry battleground in the coming years.
Sustainable Loops: A Green Path from Farm to Retail
Jeanne Carver, founder and president of Shaniko Wool Company, shared her ranch's century-old philosophy of 'making the land the biggest winner.' Through optimizing water-saving systems, precision grazing, and eliminating bare soil, she has integrated wool production with ecological restoration. This model has expanded from single raw material supply to yarn, fabric, garments, and proprietary retail, building a closed loop from farm to consumer. For factories, this model implies higher brand premiums and more stable raw material supply.
Ignacio Abella from the Uruguayan Wool Secretariat (SUL) introduced the country's agropastoral sustainable production model. 60% of Uruguay's pastures are natural grasslands, producing wool with high long-fiber content and low impurities. All wool bales are independently numbered, enabling full traceability. Uruguayan wool is exported to China, Italy, Germany, and other countries, gaining market recognition for its stable quality and competitive price. This suggests to Chinese buyers that South American wool already holds strong advantages in sustainability certification and quality stability.
On the retail side, The Woolmark Company showcased innovative applications of wool in eight categories, including casual wear, functional apparel, workwear, footwear, home textiles, and even automotive textiles. Lin Xiaofei, General Manager of Anta Champion, noted from a sportswear brand perspective that wool, with its natural advantages of thermoregulation, breathability, and antibacterial properties, is becoming a new choice for outdoor sports fabrics. The brand has launched benchmark products like the Lingyang wool T-shirt and trail running wool top, and plans to develop all-weather, multi-scenario wool apparel. Data from Tmall's Innovation Center shows that Merino wool apparel is growing significantly in the Chinese market, with fabric becoming a top consideration for consumers when purchasing clothing.
Industry Impact: Digital Traceability Accelerates Supply Chain Restructuring
Signals from this congress indicate that the competitive dimension of the wool industry is undergoing a fundamental shift. In the past, competition was based on capacity and price; now, it is about data transparency and sustainability certification. The launch of China's wool traceability platform will force domestic wool enterprises to accelerate digital transformation, or risk being excluded from high-end supply chains. The integrated traceability solutions from Australia and Europe may create new trade barriers—in the future, wool without traceability codes could face higher customs costs or market access restrictions.
For factories, this means a shift from 'weaving' to 'smart manufacturing plus traceability.' The Anhui Sustainable Fashion Industrial Park introduced by Zheng Qi, CEO of Shanghai Shepherd Textile Technology Group, exemplifies this trend: the park abandons traditional capacity competition, using NAO AI virtual looms, an intelligent quick-response center, and a recycled wool-certified green weaving center to build a complete digital ecosystem from material innovation to green manufacturing. This model will significantly shorten the design-to-delivery cycle and reduce inventory risk.