China's garment industry is at a historic crossroads. On June 25, 2026, the China National Garment Association held its 8th Second Council Meeting in Huizhou, sending a clear signal: by 2035, China aims to become a garment brand power, nurturing a group of independent brands with global influence. This goal is grounded in a sober assessment of current pains and potential drivers.
Data Reveals a Polarized Industry
Data for the first half of 2026 paints a picture of uneven performance. Exports are under pressure: weak international demand, geopolitical tensions, and supply chain disruptions have caused a fluctuating decline. This is directly tied to global trade uncertainty, as European and American markets extend inventory digestion cycles and adopt conservative procurement.
Domestic sales tell a different story. Driven by consumption stimulus initiatives, market activity is improving, with retail sales maintaining rapid growth. Production remains stable, but investment continues to shrink and corporate profits are severely squeezed. This means the industry is undergoing an adjustment period of 'stable volume, thin margins', where the logic of scale expansion has given way to competition in efficiency and value.
Notably, diversified demand is creating new growth poles. Segments like guochao (national trend), outdoor sports, and silver economy are performing actively, with brands deepening omnichannel layouts. These trends are no accident but a direct reflection of consumption upgrades and demographic shifts—young consumers' pursuit of cultural identity, the middle class's desire for healthy lifestyles, and an aging society's demand for functional apparel are all reshaping the market landscape.
Digital Intelligence: From Point Breakthroughs to Systemic Restructuring
Two corporate sharing sessions revealed the deep logic of digital transformation. Liu Chen, GM of Zhejiang Lingdi Digital Technology, proposed that simultaneous breakthroughs in generative AI, industrial simulation, embodied intelligence, and organizational intelligence will restructure the apparel ecosystem from three core dimensions: design with human-machine co-creation, manufacturing evolving into intelligent agent factories, and supply chains forming real-time collaborative networks.
The transformation path of Jeanswest's parent company, Xu Ri Group, offers more practical reference. The 50-year-old company started building a digital brand ecosystem in 2018, focusing on product development, precision operations, and supply chain integration. In 2025, it upgraded to an AI intelligent agent matrix, collaborating with universities to build an industry-academia-research innovation system. The essence is that digitalization is not a simple tool overlay but a systemic reshaping of organizational structure, business processes, and value logic.
For SMEs, what does this trend mean? The threshold for digital transformation is lowering, but the need for systematic planning is increasing. Fragmented point applications, such as deploying only one AI design tool or inventory management system, struggle to form real competitiveness. Enterprises need to build iterable, reusable data infrastructure from the top down, avoiding redundant investment and information silos.
Brand Power: Long-termism and Cultural Confidence
The biggest consensus from the meeting is that brand building is not an overnight effort; it requires long-term thinking to forge brand resilience. Attendees agreed that technology empowerment and cultural creativity have become the two core engines for brand differentiation.
On the technology front, AI already runs through the entire chain from intelligent R&D and flexible supply chains to precision marketing and dynamic terminal allocation. The key is that enterprises must view digital transformation as a continuous investment, not a one-time project. Brand strategy must be based on its own endowments and market positioning, either integrating resources to build large brand clusters or focusing on niche segments for depth.
On the cultural front, Oriental aesthetics is positioned as a unique cultural asset for local brands in the global fashion context. In the digital age, a brand's values, aesthetic system, and spiritual core form an insurmountable competitive barrier. Integrating traditional craftsmanship, color symbols, and artistic expressions with modern wearing scenarios is not only a manifestation of cultural confidence but also a vital contribution to global fashion diversity.
In his summary, President Sun Ruizhe further pointed out that the industry must explore a transition path for the 15th Five-Year Plan period between stability and breakthrough. He proposed five development mindsets: intelligent native thinking for the smart economy, future industry thinking for the innovation economy, experience economy thinking for the service economy, shared value thinking for the responsible economy, and open development thinking for the global economy. These five dimensions provide a concrete action framework for the brand power strategy.