China's textile and apparel industry stands at a critical inflection point: from the world's largest producer and exporter to a systematic sprint toward brand value. The 'Action Plan for Cultivating Excellent Brands in Textile and Apparel (2026-2028)', jointly issued by the Ministry of Industry and Information Technology and four other departments, sets a clear quantitative benchmark—cultivating at least 25 excellent brands within three years, supported by a newly established evaluation index system. This is not a simple numbers game but a screening mechanism demanding the industry to select the best from the strong.
Policy Impact: From Empirical Judgment to Scientific Measurement
Over the past decade, brand building in China's textile industry has relied more on corporate self-exploration and natural market selection, lacking unified top-level design and quantifiable evaluation standards. This joint document from five ministries systematically integrates industrial policies, talent cultivation, market supervision, communication promotion, and intellectual property protection for the first time, building an institutional support network for brand growth. Sun Ruizhe, President of the China National Textile and Apparel Council, pointed out in his interpretation that the concurrent construction of an evaluation index system means 'excellence' will no longer be a vague commercial slogan but measurable and trackable.
The deep logic behind this policy framework is that China's textile industry already possesses the manufacturing foundation and cultural resources to leap from 'scale leadership' to 'value leadership'. Customs data shows that China's total textile and apparel exports exceeded $300 billion in 2024, yet brand premium remains concentrated among a few top players. The plan essentially embeds national brand strategy into specific industrial sectors, leveraging policy to shift enterprises from OEM thinking to brand operations.
Industry Ecosystem: Technology, Culture, and Green Drivers
Sun emphasized that excellent brand growth must rely on technological innovation for quality, oriental aesthetics for cultural depth, and responsible development for brand warmth. These three drivers form an interdependent loop: technology defines product functionality, culture provides irreplaceable identity, and green meets growing global ethical demands.
From an industrial cluster perspective, traditional textile hubs like Keqiao, Shengze, and Nantong face dual pressures of overcapacity and shrinking margins. The plan's brand incubation mechanism signals a structural reshuffle for SMEs in these areas—those lacking technical patents or cultural narratives will find it harder to attract capital and channels. Conversely, enterprises with strengths in functional fabrics, Chinese-style design, or environmental processes can accelerate brand building through policy dividends.
Notably, the target of 25 excellent brands is not meant to cover the entire industry but to concentrate resources on brands with potential, heritage, and responsibility. This 'cherry-picking' strategy may intensify survival pressure on second-tier brands in the short term, but in the long run, it will force the entire supply chain to migrate toward higher value-added segments.
Implementation Path: Six Mechanisms and the Brand Marathon
The China National Textile and Apparel Council has outlined six specific tasks to implement the plan: establishing a brand incubation mechanism, conducting brand diagnostic services, collecting brand stories, building public service platforms, promoting cultural-tourism integration, and enhancing talent cultivation. These measures cover the full chain from incubation to market, but the most groundbreaking is the 'incubation pool' mechanism—brands will receive dynamic management and tiered resource allocation rather than one-time subsidies.
Brand diagnostic services address common pain points for SMEs: many factory-based enterprises excel in fabric technology but lack brand positioning and channel operation skills. Professional team intervention can help them precisely identify weaknesses, avoiding costly trial and error. Meanwhile, public service platforms will integrate design, technology, and channel resources to reduce operational costs for individual brands.
Sun described brand building as 'a marathon requiring faith and perseverance.' This judgment reflects the industry's reality: despite leading global manufacturing capabilities, brand recognition in international markets still lags far behind traditional fashion powers like Italy and France. The plan spans only three years, but brand value accumulation may take a decade or more. Thus, the policy's core value lies not in short-term quantitative achievement but in establishing a sustainable brand evaluation and cultivation system for the industry.
Industrial Impact: Supply Chain Restructuring and Procurement Logic Shift
For upstream fabric and yarn suppliers, the direct impact of the excellent brand cultivation plan is a shift in procurement logic. Brands will increasingly prefer long-term partnerships with suppliers holding technical patents, environmental certifications, and stable quality, rather than simply competing on price. This means factories with certifications like OEKO-TEX or GOTS, and those offering differentiated functional fabrics (e.g., antibacterial, biodegradable, smart temperature control), will gain stronger negotiating positions.
For foreign trade enterprises, the plan sends a clear signal: Western markets are demanding greater supply chain compliance and brand storytelling. The profit margin for pure OEM orders will continue to narrow. Enterprises that can translate production-side advantages into brand narratives will more easily gain trust from overseas retailers.