How the Textile Industry Can Move from Scale Leadership to Value High Ground Under the Brand Power Goal

China's textile and apparel industry stands at a crossroads, shifting from scale leadership to value leadership. The 'Action Plan for Cultivating Outstanding Brands in Textile and Apparel (2026-2028)', jointly issued by five ministries including MIIT, sets a quantifiable three-year target: cultivate at least 25 outstanding brands and simultaneously build an evaluation index system. This policy signals that brand building is no longer just a market behavior at the enterprise level but has been incorporated into the national strategic framework of manufacturing power, quality power, and brand power.

Industrial Foundation and Transformation Pressure China's textile and apparel industry boasts the world's most complete manufacturing system and largest market space. However, OEM export and OEM production models have long captured most of the industry's profits. According to customs data, although exports of intermediate products like fabrics and yarns continue to grow, the premium capability of terminal brands remains relatively weak. With the rapid rise of emerging textile-producing countries in Southeast Asia and South Asia, relying solely on scale advantages is no longer sustainable. The five ministries' launch of the brand cultivation plan essentially seeks a new growth engine for the industry—extending from manufacturing to branding, transforming manufacturing heritage into a carrier of cultural confidence and technological strength.

Core Dimensions of Outstanding Brands The 'outstanding' concept in the plan is not vague. Based on public interpretations, its measurement standards will revolve around three core dimensions: technological innovation to build quality foundations, Eastern aesthetics to enrich cultural heritage, and responsible development to enhance brand warmth. This means brands eligible for selection must simultaneously possess technical patents, cultural narratives, and ESG practices. For fabric and apparel companies, this is not only an opportunity for brand upgrade but also a challenge for supply chain restructuring—upstream suppliers need to provide more traceable, low-carbon, design-driven product solutions for brand clients.

Execution Path of Industry Organizations As an industry organization, the China National Textile and Apparel Council has clarified six implementation measures. Among them, establishing a 'textile and apparel outstanding brand' incubation mechanism and conducting brand diagnosis services will directly change resource allocation for brand incubation. Previously, brand growth relied more on individual enterprise exploration and market trial and error. Now, through a tiered, dynamically managed incubation system, high-quality brands can receive systematic support in policy, design, channels, and talent. Meanwhile, brand story collection and promotion, along with cultural tourism consumption integration activities, will help brands move from factory workshops to consumers' daily lives, shortening the conversion path from awareness to purchase.

Conduction Effects Upstream and Downstream The impact of the brand cultivation action will not be limited to terminal apparel brands but will transmit upstream along the industrial chain. Fabric companies and dyeing plants will face higher quality requirements and shorter innovation cycles—because outstanding brands need differentiated fabrics to support their product uniqueness and premium pricing. For foreign trade enterprises, the previous OEM-dominated cooperation model may gradually be replaced by ODM and OBM demands, as overseas clients increasingly prefer Chinese suppliers with independent design capabilities and brand operation experience.

Practical Recommendations ### For Buyers - Prioritize suppliers that have entered or plan to apply for the outstanding brand incubation pool; these companies are more likely to offer stable quality and innovation capabilities. - Add joint brand development clauses in procurement contracts, requiring suppliers to provide traceable raw material sources, carbon footprint data, and design patent certificates. - Explore brand co-branding opportunities under cultural tourism consumption integration scenarios, upgrading procurement from pure transactions to brand synergy.

For Foreign Trade Enterprises - Reassess customer structure, gradually reduce reliance on pure OEM orders, and proactively demonstrate independent design and brand operation capabilities to overseas clients. - Utilize the industry organization's diagnostic services and public service platforms to access design and channel resources, enhancing product added value and bargaining power. - Leverage brand stories and Eastern aesthetic elements as negotiation chips for cooperation with overseas high-end brands.