One out of every five sweaters globally is produced in Dalang, a township in Dongguan that churns out over 900 million garments annually and boasts a supply chain transaction value exceeding 72 billion RMB. At the 95th International Wool Textile Conference, Dalang presented not just scale, but a structural shift: as natural fibers converge with digital technology, and health-conscious consumption aligns with green responsibility, the wool industry is transitioning from manufacturing to intelligent manufacturing.
Industry Scale and Global Positioning
Data released by Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), painted a clear picture: China processes over 60 million tons of fiber annually and produces more than 70 billion garments, accounting for over 50% of global output in both categories. Textile exports have exceeded $300 billion for six consecutive years, with strong exports of intermediates like chemical fibers and fabrics stabilizing global supply chains. Dalang's production of one-fifth of the world's sweaters epitomizes China's deep integration into the global division of labor.
From January to April 2025, revenue of textile enterprises above a designated size fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This reversal signals that the industry is extracting profits through product upgrades and cost optimization despite price pressures. Retail sales of garments, shoes, hats, and textiles above a designated size grew 8.1% year-on-year, confirming a recovery in consumer demand.
Digitalization and Smart Manufacturing
The conference theme, “Smart Weaving the Future: Wool, Health, and Digital Life,” is grounded in real-world data. The digitalization rate of key processes in China's textile industry has reached 63.2%, above the national manufacturing average. In 2024, 30 textile enterprises were listed in the 5G factory directory. In the wool sector, Dalang's factories have begun deploying AI-assisted design and flexible scheduling, reducing production lead times by over 20%.
R&D spending intensity among enterprises above a designated size rose from 1% in 2020 to 1.3% in 2024. The innovation ecosystem now includes two national-level manufacturing innovation centers, five key laboratories, and 105 enterprise technology centers. China now produces more than one-third of the world's high-performance fiber capacity, signaling a shift from catching up to competing in materials innovation.
Greening and Brand Value
Green technologies like waterless dyeing and digital printing are rewriting the environmental narrative of the wool industry. Digital printing reduces water consumption by over 30% while enabling small-batch, multi-variety, fast-response production. This combination of sustainability and flexibility aligns perfectly with global brands' demand for responsible supply chains.
On the brand front, Chinese labels such as Anta and SHEIN have entered the global top 500 brands. Companies like Erdos and Shenzhou International have upgraded from OEM to OBM through cross-border M&A and multi-brand strategies, shifting from cost advantage to value advantage.
Global Supply Chain Shifts
The IMF has downgraded its 2026 global growth forecast to 3.1%, with geopolitical tensions, energy volatility, and shipping disruptions adding complexity. From January to May 2025, China's textile and apparel exports totaled $116.73 billion, up 0.1% year-on-year. Textile exports grew 1.7%, while apparel exports fell 1.6%. This divergence—strong intermediates, weak finished goods—indicates that global buyers are adjusting inventory strategies, preferring semi-finished products to retain local processing flexibility.
For the wool industry, this means nearshoring and supply chain dispersion are irreversible. Dalang's factories must now handle order fragmentation while meeting diverse requirements for environmental certification and carbon footprint tracing.