In the first half of 2026, China's apparel industry delivered a mixed performance: exports declined due to weak overseas demand and geopolitical tensions, while domestic sales maintained rapid growth driven by consumption stimulus policies and improved market activity. Meanwhile, industry investment continued to shrink, severely squeezing corporate profits. This dichotomy reflects the industry's position on the threshold of the '15th Five-Year Plan'—the scale dividends of manufacturing are fading, while the new momentum from branding has yet to be fully unleashed.
Industry Direction: From Manufacturing Power to Brand Power
On June 25, the China National Garment Association held its 8th Executive Meeting in Huizhou, Guangdong. Senior officials including Sun Ruizhe, president of the China National Textile and Apparel Council, and Chen Dapeng, president of the association, attended along with 24 vice presidents. The core agenda was the industry's development direction during the '15th Five-Year Plan' period, setting a clear goal: by 2035, when China basically achieves socialist modernization, the apparel industry should have largely built a strong brand nation, cultivating a group of independent brands with global fashion influence.
This goal means the next five years are not about simple capacity expansion, but a value leap from 'Made in China' to 'Created in China.' The industry's positioning is shifting from industrial manufacturing to a technology-led, fashion-driven creative industry. Sun Ruizhe noted in his closing remarks that factors, rules, markets, and comparative advantages have all undergone profound changes, requiring the industry to find a leapfrog path between stability and disruption.
Digitalization and AI: The Core Variable Reshaping the Ecosystem
At the meeting, Liu Chen, general manager of Zhejiang Lingdi Digital Technology, pointed out that simultaneous breakthroughs in generative AI, industrial simulation, embodied intelligence, and organizational intelligence will reshape the apparel ecosystem from three core dimensions. On the design side, human-machine collaboration emerges, transforming designers into curators of aesthetics and trends, significantly compressing new product development cycles. On the manufacturing side, factories evolve into intelligent entities with autonomous sensing and feedback capabilities, enabling the precipitation and reuse of tacit craft knowledge. On the supply chain side, linear models are broken, forming real-time collaborative networks among brands, factories, and consumers.
JEANSWEST, under the Sunrise Group, exemplifies this trend. Since 2018, the brand has built a digital brand ecosystem focusing on product development, precision operations, and supply chain integration. By 2025, JEANSWEST upgraded to an AI agent matrix, collaborating with multiple universities on industry-academia-research projects, extending digital capabilities from internal operations to industry empowerment. This path shows that digital transformation has evolved from single-point tool application to a full-chain systemic project.
Eastern Aesthetics and Cultural Confidence: New Engines for Brand Differentiation
In terms of brand competition, attendees reached a consensus: brand building requires long-termism, and technology alongside cultural creativity have become dual engines for differentiation. Eastern aesthetics are seen as a unique cultural asset for local brands in the global fashion landscape. Sun Ruizhe emphasized that brands should deeply explore the philosophical connotations and life wisdom behind Eastern aesthetics, organically integrating traditional craftsmanship, color symbols, and modern scenarios.
This trend is already validated in the market. Segments like national fashion (guochao), outdoor sports, and the silver economy continue to grow, with brands deepening omnichannel deployment. For buyers and factories, this means the value anchor of products is shifting from 'cost performance' to 'cultural added value.' Pure OEM models will find it increasingly difficult to maintain profits; suppliers with cultural narrative capabilities and design R&D strength will gain higher bargaining power.
New Phase of Going Global: From Product Export to Simultaneous Brand and Capital Export
The meeting also noted that enterprises' overseas expansion has entered a new phase—no longer simple product export, but simultaneous export of capacity, brand, and capital. Sun Ruizhe proposed that companies need to strengthen cross-border operational and cross-cultural narrative capabilities, leveraging profound cultural heritage and high-value-added products to reshape overseas market perceptions of Chinese brands.
This shift has far-reaching implications for the supply chain. Foreign trade enterprises need to shift from 'order-based production' to 'brand coordination,' establishing closer global collaboration networks in R&D, quality control, and logistics. Meanwhile, compliance requirements in overseas markets (such as environmental and labor standards) will also force domestic factories to enhance green and responsible production capabilities.