One out of every five sweaters globally comes from Dalang, Dongguan, a renowned wool knitting town in southern China, with an annual garment output exceeding 900 million pieces and a total supply chain transaction value surpassing 72 billion yuan. These figures underscore the transformation of the wool textile industry from traditional manufacturing to digitalization and greening. At the 95th International Wool Textile Conference held here on June 24, Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), unveiled the growth engines and challenges for the industry over the next decade.
Current Landscape: Certainty Behind the Data
China's textile industry plays a cornerstone role in the global supply chain. Annual fiber processing volume remains above 60 million tons, and garment production exceeds 70 billion pieces, accounting for over 50% of the global share. Exports have surpassed $300 billion for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics stabilizing global supply chains. From January to May this year, textile and apparel exports reached $116.73 billion, up 0.1% year-on-year, reflecting the industry's resilience amid a complex environment.
Domestic consumption also shows recovery. From January to April, retail sales of garments, footwear, hats, and knitwear by units above designated size totaled 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the same period last year. Profits of enterprises above designated size surged 19.3%, with an operating profit margin of 2.9%, indicating improved profitability under pressure.
Technology Driving Change: Smart and Green Reshape Manufacturing Logic
The conference theme, 'Weaving the Future with Intelligence: Wool's Health and Digital Life,' directly addresses core transformation directions. R&D investment intensity among China's textile enterprises above designated size rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. The industry has established two national manufacturing innovation centers and five key laboratories. High-performance fiber capacity accounts for over one-third of the global total, with applications expanding from traditional textiles to aerospace and marine engineering.
Smart manufacturing is reshaping factory operations. The digitalization rate of key processes across the industry reached 63.2%, higher than the national manufacturing average. For example, Jiangsu Yueda Textile, a 'Lighthouse Factory,' reduced labor per 10,000 spindles by about 70%, boosted total labor productivity by over four times, cut unit energy consumption by 15%, and lowered processing costs by 26%. AI-assisted design systems at Semir and Bosideng improved design efficiency by 35% and reduced sample development costs by over 60%, respectively. Green technologies like non-aqueous dyeing and digital printing are accelerating adoption, enhancing resource efficiency.
New Global Paradigm: Dual Impact of Intelligent and Experience Economies
The global economy is under dual pressure from low growth and high volatility. The IMF has downgraded its 2026 global growth forecast from 3.4% to 3.1%. Geopolitical tensions, energy fluctuations, shipping disruptions, and financial tightening are compounding pressures on businesses. However, the AI boom offers new variables for the wool industry. The global AI market reached $757.58 billion in 2025, expected to exceed $900 billion by 2026. The development of intelligent agents is driving mass deployment of 'digital employees,' with IDC predicting billions of AI agents entering the workforce by 2030.
Consumer behavior is also undergoing profound changes. Segmentation and stratification are becoming more pronounced, with health, emotional connection, and self-expression as core demands. Social media accelerates information generation and dissemination, making product discovery, comparison, and decision-making increasingly intelligent. This means wool enterprises must shift from pure product manufacturing to experience economy, creating added value through branding, national trend designs, and cross-sector collaborations. Companies like Anta and Shein have entered the GYBrand World's Top 500, while Hengli, Erdos, and others deepen global participation through cross-border M&A and global layout, reflecting this trend.