One out of every five sweaters globally is produced in Dalan, Guangdong. This woolen textile town, with an annual transaction volume exceeding 72 billion yuan, recently became the focus of the global wool industry. The 95th International Wool Conference was held here, and Sun Ruizhe, President of the China National Textile and Apparel Council, delivered a keynote speech revealing the deep changes underway in the global textile supply chain.
Structural Divergence Behind Industry Resilience
China's textile industry remains a cornerstone of the global supply chain. Public industry data shows that China's annual fiber processing volume is stable at over 60 million tons, and annual garment production exceeds 70 billion pieces, both accounting for more than half of the global total. Exports have surpassed 300 billion USD for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics providing stable raw material support for downstream manufacturing countries.
However, data from 2025 shows clear structural divergence. From January to April, revenue of large-scale enterprises fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This suggests the industry is offsetting slower scale growth through cost reduction and product mix upgrades. During the same period, retail sales of apparel, footwear, hats, and textiles by units above the designated size grew 8.1% year-on-year, with domestic demand providing a buffer.
Investment data offers a more telling signal. From January to May, fixed asset investment in the textile sector grew 10.8% year-on-year, but apparel and chemical fiber sectors fell 10.3% and 14.5%, respectively. This divergence indicates capital is moving away from low-value-added garment manufacturing and traditional chemical fiber capacity, flowing instead into higher-end yarn, fabric, and smart manufacturing segments. For foreign buyers, this means the supply structure of China's garment exports is undergoing an irreversible shift.
Intelligent Economy Rewriting Production Functions
Sun Ruizhe devoted significant time in his speech to the penetration of artificial intelligence into the textile industry. This is not a distant vision but an ongoing industrial reality. Public data shows that the digitalization rate of key processes across the industry has reached 63.2%, exceeding the national manufacturing average. In 2024, 30 textile enterprises were selected for the 5G factory list.
Specific cases are more illustrative. Jiangsu Yueda Textile's 'Lighthouse Factory,' through smart manufacturing, reduced labor per 10,000 spindles by about 70%, increased overall labor productivity by over four times, cut unit energy consumption by 15%, and reduced processing costs by 26%. Semir's AI-assisted design system boosted design R&D efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. These numbers reflect a recombination of labor, capital, and technology factors within the production function.
A notable trend is AI agents evolving from tools to 'digital employees.' IDC predicts that billions of AI agents will enter the workforce by 2030. In 2025, global shipments of humanoid robots grew by approximately 508% year-on-year. For textile factories, this is not just about efficiency gains but a fundamental change in labor structure and cost models.
Experience Economy Driving Supply Chain Responsiveness
Global consumer markets are undergoing ecological restructuring. Consumer segmentation is pronounced, with health, emotional connection, and self-expression becoming core demands. Social media accelerates information dissemination, and product discovery, comparison, and decision-making are increasingly intelligent. This shift demands not just 'faster, better, cheaper' from supply chains but extreme quick response and flexible production capabilities.
The Dalan model itself is a sample. Behind this town-level industrial cluster is a complete woolen textile chain—from yarn, design, and weaving to finishing and sales—capable of delivering small-batch, multi-style orders in extremely short cycles. This 'fast response' capability is precisely the asset most valued by buyers in the experience economy era.
The 'one-person company' and 'handcraft economy' trends Sun Ruizhe mentioned are worth noting. In the first half of 2025 alone, the number of newly registered OPCs (one-person limited liability companies) in China increased by 47% year-on-year. This means more independent designers and micro-brands are bypassing traditional wholesalers to directly contact factories. For fabric and garment suppliers, the customer profile is migrating from large brands to a vast number of small B-end clients, and order fragmentation will become the norm.
Green and Digital as Dual Drivers
Advanced green technologies like non-aqueous dyeing and digital printing are accelerating adoption. This is not just about environmental compliance but has become a new dimension of competitiveness. Digital printing enables small-batch customization while reducing water and pollution from traditional printing and dyeing. Non-aqueous dyeing significantly reduces water consumption in the dyeing process.
Breakthroughs in high-performance fibers are also expanding the application boundaries of textiles. China's high-performance fiber capacity now accounts for over one-third of the global total, with products used not only in traditional apparel but also in high-end manufacturing sectors like aerospace and ocean engineering. This means the 'ceiling' of the textile industry is being broken, extending from daily consumer goods to industrial materials.