In the first half of 2026, the garment industry saw a fluctuating decline in exports, while domestic sales maintained rapid growth and production remained generally stable. However, investment continued to shrink, and corporate profitability came under severe pressure. These core operational data were disclosed at the 2nd Council Meeting of the 8th China National Garment Association, held in Huizhou on June 25.
A clear industry divergence is emerging: weak external demand combined with geopolitical conflicts is forcing companies to shift from quantitative expansion to qualitative deepening, while domestic consumption, supported by special stimulus actions, is providing structural opportunities in niche segments such as guochao (national trend), outdoor sports, and silver economy.
The Industrial Logic Behind Export Pressure
China Customs public data indicates that global supply chain disruptions and shrinking market demand are the direct causes of the export decline. However, the deeper issue is that China's garment industry is at a critical window of transition from an industrial manufacturing model to a technology-led, fashion-driven creative industry.
This means the export model that relied on scale and cost advantages is losing effectiveness. If companies fail to establish new barriers in product R&D, brand premium, or flexible supply, they will find it difficult to break through in the zero-sum competition. For factories primarily engaged in OEM, the profit pressure in the first half of 2026 may only be the beginning.
Digital Intelligence: From Tools to Ecosystem
The presentations by Zhejiang Lingdi Digital Technology and Xu Ri Trading (parent of Jeanswest) at the meeting revealed a new phase of digital intelligence. The simultaneous breakthroughs in generative AI, industrial simulation, embodied intelligence, and organizational intelligence are reconstructing the industry ecosystem from three dimensions:
- Design ends achieve human-machine co-creation, with development cycles drastically shortened and designers transforming into trend curators.
- Manufacturing ends evolve into intelligent factories, where tacit process knowledge is captured and reused, improving quality control and re-sample efficiency.
- Supply chain ends break linear collaboration models, forming real-time collaborative networks among brands, factories, and consumers, with digital twins becoming a new threshold.
The case of Jeanswest is particularly noteworthy. From launching its digital brand ecosystem in 2018 to upgrading to an AI agent matrix in 2025 and collaborating with universities on industry-academia-research projects, its path shows that digital intelligence is not about cost reduction or efficiency improvement in a single link, but a reconstruction of enterprise-level system capabilities. For small and medium-sized factories that cannot build their own AI systems, joining a platform ecosystem may be a more practical option.
Brand Power: From Slogan to Systematic Project
The core tone of the meeting is to solidify the foundation of a brand power country during the 15th Five-Year Plan period (2026-2030) and to basically build a garment brand power by 2035, nurturing a group of independent garment brands with global fashion discourse power. This goal is not empty talk, but based on the reality that China's garment industry has firmly established itself in the global first tier—with a complete industrial chain, leading production and sales scale, and support from a huge domestic market.
However, the shortcomings are equally obvious: global brand perception is still dominated by 'Made in China' rather than 'Created in China,' and brand premium capability is relatively weak. The consensus formed by participating enterprises is that brand building requires a long-termist approach, driven by both technological innovation and cultural creativity.
Specifically, technology empowerment is reflected in the top-level design of full-chain digitalization to avoid fragmented investments; cultural creativity focuses on the modern transformation of Eastern aesthetics, integrating traditional craftsmanship, color symbols, and contemporary wearing scenarios to form an irreplicable competitive barrier. For foreign trade companies, this means they need to work on product added value and cultural narrative, otherwise it will be difficult to establish true brand recognition in overseas markets.