China's garment industry is at a critical juncture, transitioning from a manufacturing giant to a brand powerhouse. At the 8th Second Council Meeting of the China National Garment Association held in Huizhou on June 25, the central message was clear: 2026, the first year of the 15th Five-Year Plan period, must mark the shift from industrial manufacturing to a tech-and-fashion-driven creative industry. This urgency is underscored by H1 2026 data showing export declines, diverging domestic sales, and shrinking profit margins.
Data Snapshot: Exports Under Pressure, Domestic Market as Stabilizer
H1 2026 industry data reveals a stark contrast. Exports faced a volatile downturn due to weak global demand, escalating geopolitical tensions, and supply chain disruptions. In contrast, domestic sales maintained rapid growth, fueled by consumption stimulus policies. However, investment continued to contract, and corporate profits came under severe pressure. This indicates that the old growth model reliant on scale expansion and exports is no longer viable, forcing the industry into a phase of value-upgrading and competition.
Brand Power: Strategic Shift from Scale to Voice
The meeting defined the 15th Five-Year Plan period as a critical five years of transition, with the goal of building a brand power by 2035, cultivating globally influential brands. This is based on the industry's solid foundation: China's textile and apparel sector leads globally in supply chain completeness and production scale. However, shortcomings remain, including a lack of top-tier international brands and limited influence in fashion standard-setting. The core task is to drive high-quality brand development through technology, fashion, green production, and health.
Digitalization: Restructuring the Industry's Core Logic
Digital transformation was another key focus. Liu Chen, GM of Zhejiang Lingdi Digital Technology, noted that breakthroughs in generative AI, industrial simulation, embodied intelligence, and organizational intelligence will restructure the industry from three dimensions: design (human-AI collaboration), manufacturing (smart factories with self-awareness), and supply chain (real-time collaboration networks).
Jeanswest's case offers a replicable path. Since 2018, it has built a digital brand ecosystem, focusing on product development, precision operations, and supply chain integration, collaborating with multiple universities. In 2025, it upgraded to an enterprise-level AI agent matrix, empowering industry partners. This demonstrates that digitalization requires top-level design, data asset accumulation, and ecosystem collaboration.
New Brand Competition Dimensions: Cultural Empowerment and Long-termism
Industry leaders reached a consensus: brand building requires long-termism. Technology and cultural creativity are now two key engines for differentiation. Oriental aesthetics is seen as a unique cultural asset for local brands in the global fashion context. By integrating traditional craftsmanship, color symbols, and modern wearing scenarios, brands can build insurmountable barriers and drive the shift from 'Made in China' to 'Created in China'.
For brand going global, companies must reshape overseas perceptions through deep cultural heritage and high-value products. This means exports are no longer about capacity but about brand value and cultural narrative.