The brand competition in China's textile and garment industry has entered a decisive phase—moving from 'existence' to 'excellence'. The latest 'Textile and Garment Excellent Brand Cultivation Action Plan (2026-2028)', jointly issued by five ministries including MIIT, sets a quantifiable target: at least 25 excellent brands within three years. This is not a numbers game but a restructuring of value distribution across the supply chain.
From Scale Dividend to Value Dividend
Over the past decade, China has ranked first globally in textile and garment exports, yet brand premium remains a weakness. Public data from the National Bureau of Statistics shows that OEM exports still account for over 30%, and independent brands hold less than 5% of the high-end overseas market. The plan's emphasis on 'quality first, select the best' signals that policy resources will no longer be scattered but concentrated on 25 brands capable of breaking through the ceiling.
For buyers and factories, the message is clear: the era of competing purely on capacity and price is ending. In the next three years, end brands will accelerate supply chain screening—only those offering differentiation in fabric innovation, green certification, and cultural narrative will secure partnerships.
Cross-Ministry Synergy and Industrial Cluster Response
The plan involves five ministries, covering the entire chain from production to distribution. Sun Ruizhe, President of CNTAC, emphasized that it integrates industrial policies, talent cultivation, market regulation, promotion, and IP protection.
From a regional perspective, clusters like Keqiao (Shaoxing), Shengze (Suzhou), and Nantong (home textiles) will feel the impact first. Medium-to-large enterprises already investing in functional fabrics, recycled fibers, or intangible cultural heritage techniques are most likely to enter the 'incubation list'. SMEs must pivot toward 'specialization and innovation' to become supporting suppliers rather than direct competitors.
Evaluation System: From Experience to Scientific Measurement
The plan also calls for developing an evaluation index system for excellent brands. Sun Ruizhe noted this will shift brand building from 'gut feeling' to 'measurable standards'. Texworld Editorial believes the index will likely cover:
- Technology innovation: R&D spending ratio, patent count, new material application rate
- Cultural depth: use of intangible heritage elements, design originality, brand story reach
- Green responsibility: carbon footprint certification, wastewater treatment compliance, recyclable material ratio
- Market performance: repurchase rate, premium ability, overseas channel coverage
This means that brands built solely on advertising spend will no longer qualify; true excellence requires both technical and cultural audits.
Six Mechanisms and Operational Paths
CNTAC has outlined six implementation paths, three of which have the most direct impact:
- Incubation mechanism: akin to a 'brand nursery', selected firms receive targeted policy support and expert guidance
- Brand diagnostic services: professionals conduct comprehensive audits from design to production to marketing
- Tourism-consumer integration: brand stories move beyond press releases into immersive consumer experiences
For foreign trade enterprises, this opens a window for brand overseas expansion. The plan's focus on 'global vision' talent cultivation and IP protection addresses two pain points that have historically hindered Chinese textile brands abroad.