One out of every five sweaters worldwide is produced in Dalang, Dongguan. This small town with a population of less than one million achieved an annual industry chain transaction value exceeding 72 billion yuan in 2024, with garment production surpassing 900 million pieces. When the 95th International Wool Textile Conference opened here on June 24, Dalang was no longer just an industrial cluster but a window to observe the transformation of the global wool textile industry.
Resilience in the Numbers
Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), disclosed a set of noteworthy data during his speech at the conference: from January to April 2025, operating revenue of above-scale textile enterprises slightly decreased by 0.3% year-on-year, but total profit surged by 19.3%, with an operating profit margin of 2.9%. This reversal of 'revenue decline but profit increase' indicates that the industry is shifting from pure scale expansion to efficiency-driven growth. During the same period, retail sales of garments, shoes, hats, and knitwear by units above the designated size totaled 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the previous year.
However, the divergence in investment is more alarming. From January to May 2025, fixed asset investment in the textile industry grew by 10.8% year-on-year, while investment in the apparel and chemical fiber industries fell by 10.3% and 14.5%, respectively. This contrast suggests that capital is concentrating in upstream manufacturing segments like spinning and weaving, while downstream apparel and chemical fiber sectors face overcapacity and weak demand. For buyers, this means greater stability in upstream fabric supply but potentially narrower bargaining power for finished garments.
Intelligent Economy Reshapes Industry DNA
Sun emphasized the penetration of the intelligent economy into the wool textile industry, citing the 'Lighthouse Factory' of Jiangsu Yueda Textile as an example: through smart manufacturing transformation, the number of workers per 10,000 spindles was reduced by about 70%, total labor productivity increased by more than four times, unit energy consumption decreased by 15%, and processing costs fell by 26%. These figures reveal a feasible path for the wool textile industry to leap from labor-intensive to technology-intensive.
More profound changes are occurring in R&D. Semir's AI-assisted design system improved overall design efficiency by 35% and pattern design efficiency by over 200%; Bosideng's 'AI Aesthetics Brain' reduced sample development costs by more than 60%. This means that the traditional sweater development process, which relied on designer experience and repeated sampling, is being replaced by data-driven rapid iteration. For clusters like Dalang, whether small and medium enterprises can access AI tools will determine their position in the next round of competition.
Experience Economy Drives New Consumption Paradigms
The conference theme 'Wool's Health and Digital Life' reflects profound changes on the consumer side. The global consumer market is characterized by ecological restructuring, a return to human-centered values, and structural differentiation, with consumers increasingly demanding health, emotional connection, and self-expression. The wool industry's inherent eco-friendly and renewable attributes align perfectly with this trend. However, the challenge lies in translating this natural advantage into perceptible brand value.
The globalization of Chinese-style trends is a key signal. Brands like Anta and SHEIN have entered the 2026 GYBrand World's Top 500 Brands, while Hengli, Erdos, and others are deeply involved in global cooperation through cross-border M&A and multi-brand operations. This means Chinese wool textile enterprises are no longer just OEMs but are beginning to export design, brands, and standards. For factories in Dalang, transitioning from order-based production to independent brand operations requires crossing multiple thresholds in supply chains, channels, and talent.