Brand Power Strategy Takes Shape: Textile Industry Aims for 25 Premium Brands in Three Years with Clear Value Upgrade Path

China's textile and apparel industry is undergoing a fundamental shift from scale-driven competition to brand value creation. According to the 'Textile and Apparel Premium Brand Cultivation Action Plan (2026-2028)' jointly issued by five ministries, the country aims to cultivate at least 25 globally competitive premium brands within three years, supported by a brand evaluation index system. This quantitative target represents a systematic correction of the decades-old OEM model. From an industrial perspective, brand building is never an isolated endeavor but a comprehensive projection of manufacturing capability, cultural resources, and market space. China's textile industry boasts the world's most complete supply chain—from chemical fibers, spinning, and weaving to dyeing and garment processing—each with scale and technological advantages. However, these advantages have long remained 'invisible' within the supply chain rather than translating into brand premiums at the consumer end. The joint ministerial document aims to fill this gap by converting industrial hard power into brand soft power through a policy mix. The most noteworthy aspect of the plan is not the target of 25 brands per se, but the concurrent development of an evaluation index system. This means brand cultivation will shift from experience-based guesswork to measurable metrics. Sun Ruizhe, head of the China National Textile and Apparel Council (CNTAC), emphasized that the index system will transform brand building from 'empirical judgment' to 'scientific measurement,' making excellence quantifiable and actionable. At the industrial cluster level—such as Keqiao, Shengsze, and Nantong—this policy will fundamentally alter the competitive logic. Previously, these clusters competed on speed and cost. Going forward, companies that can establish proprietary brands and validate their quality and cultural depth through the evaluation system will gain priority access to policy resources. For small and medium factories reliant on OEM orders, this means further compression of profit margins as brand orders concentrate among top players. CNTAC, as the industry association, will lead the plan's implementation through six key tasks: incubation mechanism, diagnostic services, story promotion, platform building, cultural-tourism integration, and talent development. These tasks are not merely a service checklist but a systemic test of the association's capabilities. For example, the 'brand diagnostic service' requires assembling a team of experts with rare cross-disciplinary skills—textile technology, brand operations, and international perspective. The integration of cultural tourism and brand consumption is another trend worth watching. For fabric suppliers, this means downstream brand clients will demand richer 'fabric stories,' where a piece of fabric is no longer just a set of functional parameters but also carries regional culture, environmental philosophy, or craftsmanship heritage. The brand cultivation action will not immediately reshape global trade patterns, but it will create ripple effects in several dimensions. First, higher brand premiums could lift export unit prices, benefiting foreign trade enterprises long trapped in 'volume up, price down.' However, this requires a shift from order-taking to brand management, demanding entirely different organizational capabilities and capital investment. Second, the 'green textile' and 'tech textile' dimensions in the evaluation system will impose stricter requirements on upstream chemical fiber and dyeing sectors. Suppliers who have invested early in recycled fibers, waterless dyeing, and other green technologies will gain greater order stickiness. For fabric traders in Keqiao and Shengsze, the most direct impact is that brand clients will demand higher traceability. Premium brands need to prove supply chain transparency and compliance, forcing traders to build robust traceability systems or risk being excluded from procurement lists. ### For Buyers - Reassess suppliers' 'brand compatibility': Prioritize factories that have initiated brand cultivation plans or hold green-tech certifications, as they offer higher long-term stability. - Include 'fabric story' in procurement criteria: Beyond technical specs, require suppliers to provide cultural background, craft heritage, or environmental contributions to match end-consumer brand narratives. - Monitor the evaluation index system: As policy standards evolve, buyers should stay ahead to avoid supply chain compliance issues that could affect brand ratings. ### For Factories (especially OEMs) - Pilot a 'brand transformation': Start with a 'factory brand'—differentiate on category, craft, or sustainability—and promote through industry platforms. - Invest in green technology certifications: Recycled fibers, low-carbon dyeing, and water-saving processes are not just cost items but will become entry barriers for brand orders within three years. - Build a supply chain traceability system: Digitize the full chain from raw material procurement to finished goods to enable on-demand audits by brand clients. This requires IT investment but is essential for securing premium orders.