One out of every five sweaters in the world is produced in Dalang, a small town in the Pearl River Delta. With an annual garment output exceeding 900 million pieces and a full-industry-chain transaction value surpassing 72 billion RMB, Dalang hosted the 95th International Wool Textile Conference on June 24. The theme, 'Smart Weaving Future: Wool's Health and Digital Life,' signals a systemic transformation of the wool industry from workshop to consumer.
Industrial Coordinates: Dalang's Agglomeration and Industry Resilience
Dalang is not an accidental wool hub. It is a typical product of China's post-reform textile agglomeration, mirroring the industry's shift from OEM to independent innovation. Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), noted in his keynote that China's annual fiber processing volume exceeds 60 million tons, with annual garment output surpassing 70 billion pieces, both accounting for over 50% of global shares. For six consecutive years, exports have exceeded $300 billion, with strong intermediate goods like chemical fibers and fabrics providing solid support for the global supply chain.
From January to April this year, revenue of textile enterprises above designated size fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. Retail sales of garments, shoes, hats, and textiles by units above designated size reached 512.13 billion RMB, up 8.1% year-on-year, accelerating 5 percentage points from the previous year. This structural shift from 'slight revenue decline to sharp profit growth' indicates that the industry is absorbing cost pressures through technological upgrades and efficiency gains, rather than relying solely on scale expansion.
Paradigm Shift: How Intelligence and Experience Reshape Wool Textiles
The conference theme of 'smart weaving' and 'digital life' is not empty rhetoric. Artificial intelligence is rapidly penetrating the entire chain of textile design, production, and management. Sun cited multiple cases: Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, quadrupled labor productivity, cut unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-assisted design system boosted overall design efficiency by 35%, with pattern design efficiency increasing by over 200%. Bosideng's 'AI Aesthetics Brain' reduced sample development costs by more than 60%.
These cases demonstrate that digital transformation in the wool industry has moved from proof-of-concept to large-scale application. The digitalization rate of key processes across the industry reached 63.2%, higher than the national manufacturing average. In 2024, 30 textile enterprises were listed in the 5G factory directory. Meanwhile, the development of AI agents is creating 'digital employees.' IDC predicts that by 2030, billions of AI agents will enter the workforce. For the wool industry, this means more flexible production organization and lower marginal costs.
The rise of the experience economy is also reshaping the consumer side. Consumers increasingly demand health, emotional connection, and self-expression. Wool products naturally possess 'health' and 'sustainability' attributes, aligning with current consumption trends. Social media accelerates information dissemination, making product discovery, comparison, and decision-making more intelligent. Wool enterprises must shift from selling fabric or garments to offering lifestyle solutions.
From Dalang to the Globe: Where Lies Supply Chain Certainty?
Dalang's agglomeration effect is not just about volume; it is about rapid response to global markets. The global market faces dual pressures of low growth and high volatility. The IMF has downgraded the 2026 global economic growth forecast to 3.1%, with geopolitical conflicts, energy fluctuations, and shipping disruptions adding uncertainty. Against this backdrop, the stable operation of China's textile industry serves as a 'ballast stone' for the global supply chain.
Sun noted that R&D investment intensity of textile enterprises above designated size rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. High-performance fiber capacity accounts for over one-third of the global total, with applications extending to aerospace, marine engineering, and other high-end manufacturing. Green technologies such as non-aqueous dyeing and digital printing are being rapidly adopted, improving pollution control. These technological reserves give China's wool industry the elasticity to cope with future market changes.
Notably, Chinese textile enterprises are upgrading their 'going global' approach. Companies like Hengli, Weiqiao, Erdos, and Shenzhou International are deeply participating in global cooperation through cross-border M&A, global capacity layout, and multi-brand operations. This shift from 'product export' to 'capability export' is reshaping the value chain division of the global wool industry.