China's garment industry stands at a critical turning point. In the first half of 2026, exports were dragged down by weak international demand and geopolitics, showing volatile declines; domestic sales maintained rapid growth driven by consumption stimulus policies. Investment continued to shrink, corporate profits were under severe pressure, but sub-sectors like guochao, outdoor sports, and silver economy bucked the trend, becoming structural highlights. This divergence reflects the deep transformation pressure from scale-driven to value-driven growth.
Brand Power: Strategic Anchor for the 15th Five-Year Plan
On June 25, the China National Garment Association held its second executive meeting in Huizhou, Guangdong, positioning the '15th Five-Year Plan' period as the key five years to solidify the foundation of a brand powerhouse. According to the plan, by 2035, when China basically realizes socialist modernization, the garment industry should have basically built a brand powerhouse, cultivating a batch of independent brands with global fashion discourse power. This means the next five years must see the industry leap from an industrial manufacturing type to a tech-led, fashion-driven creative industry.
Meeting data shows that in H1 2026, industrial production was generally stable, but investment continued to shrink and corporate profits were under heavy pressure. The volatile export decline stems from multiple factors including weak international demand and disrupted supply chains. The faster domestic sales growth mainly benefited from the deepening implementation of consumption stimulus actions, gradually improving market activity. This 'cold outside, warm inside' situation forces companies to rethink market layout and brand strategy.
Digitalization: Restructuring the Full Industry Chain
In the tech sharing session, Liu Chen, general manager of Zhejiang Lingdi Digital Technology Co., Ltd., pointed out that generative AI, industrial simulation, embodied intelligence, and organizational intelligence have all achieved breakthroughs simultaneously. These multiple technologies will deeply integrate to reconstruct the garment industry ecosystem from three core dimensions: design end enabling human-machine co-creation, transforming designers into curators of aesthetics and trend judgment, significantly compressing new product R&D cycles; manufacturing end transforming into intelligent agent factories with autonomous perception and feedback capabilities, depositing industry tacit process knowledge, optimizing quality control and sample replication efficiency; supply chain end breaking linear models to form real-time collaborative networks among brands, factories, and consumers, with digital twin interoperability becoming a new threshold for industrial collaboration.
Liu Weiwen, deputy general manager of Xuri Trading (China) Co., Ltd. and general manager of Jeanswest E-commerce, shared Jeanswest's transformation path. From launching digital brand ecosystem construction in 2018 to initiating digital upgrade in 2025, Jeanswest gradually achieved balanced multi-platform, multi-brand, multi-category development by building collaborative innovation centers with multiple universities. Its experience shows that digital transformation cannot stop at single-point breakthroughs; companies need to strengthen overall digital top-level design and build iterable and reusable digital infrastructure.
Eastern Aesthetics: Cultural Engine for Brand Differentiation
Meeting consensus indicated that technological innovation and cultural creativity have become important engines for brand differentiation competition. Eastern aesthetics, as a unique cultural asset for local brands in the global fashion context, is shifting from 'added value' to 'core barrier'. Brands need to deeply explore the philosophical implications and life wisdom behind Eastern aesthetics, organically integrating traditional craftsmanship, color symbols, and artistic expression with modern wearing scenarios.
In brand going global, companies should rely on profound cultural heritage and high value-added products to reshape overseas market perceptions of Chinese brands, promoting the shift from 'Made in China' to 'Created in China'. The rise of guochao, the revival of Eastern aesthetics, and the rise of niche consumption are becoming key variables driving performance growth. Brand competition has shifted from scale expansion to comprehensive competition in original design, cultural spirit, and emotional experience.
Five Mindsets: Strategic Framework to Address Uncertainty
In his concluding speech, Sun Ruizhe, president of the China National Textile and Apparel Council, proposed that the industry needs to explore transformation paths between stability and breakthrough, building five development mindsets: intelligent native mindset (AI full-chain penetration, addressing new risks like algorithm safety); future industry mindset (new materials, advanced manufacturing expanding application scenarios); experience economy mindset (cultural empowerment, multi-scenario product spiritual value); common value mindset (green and adaptive fashion transforming into competitive advantage); open development mindset (simultaneous output of capacity, brand, and capital, strengthening cross-border operation capabilities).