One in every five sweaters worldwide is produced in Dalang, a small town in Dongguan that produces over 900 million garments annually with a total industrial chain transaction value exceeding 72 billion yuan. This data point served as the starting point for discussions at the 95th International Wool Textile Conference, which opened on June 24. As natural fibers meet digital technology, the wool textile industry is no longer just an extension of a classic sector, but a growth engine driven by new technology, new consumption, and new cooperation.
The Foundation: China's Certainty in Textile Supply
China's textile industry provides stable support for global supply chains. The country processes over 60 million tons of fiber annually and produces more than 70 billion garments, accounting for over 50% of global output. Exports have exceeded $300 billion for six consecutive years, with strong exports of intermediate goods like chemical fibers and fabrics being key to global supply chain stability. From January to May this year, textile and apparel exports reached $116.73 billion, up 0.1% year-on-year, with textile exports alone at $59.48 billion, up 1.7%.
A deeper shift lies in the upgrade of the manufacturing system. R&D investment intensity among above-scale enterprises rose from 1% in 2020 to 1.3% in 2024, with 112 national-level innovation platforms established. High-performance fiber production capacity accounts for over one-third of the global total, with applications extending to high-end fields like aerospace and marine engineering. The digitalization rate of key processes across the industry reached 63.2%, higher than the national manufacturing average. In 2024, 30 textile enterprises were included in the 5G factory list.
Paradigm Shift: Intelligent Economy Reshaping the Wool Value Chain
The global economy is experiencing both low growth and high volatility. The IMF has lowered its 2026 global growth forecast to 3.1%, with geopolitical conflicts, energy fluctuations, and shipping disruptions increasing market uncertainty. Against this backdrop, the wool textile industry needs to find new value anchors.
Intelligent economy is changing the industry logic. The global AI market reached $757.58 billion in 2025, up 18.7% year-on-year, and is expected to exceed $900 billion by 2026. AI is accelerating integration into design, production, and management. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70% through intelligent manufacturing, while quadrupling labor productivity and cutting energy consumption by 15%. Semir's AI-assisted design system improved R&D efficiency by 35% and pattern design efficiency by over 200%.
Digital employees are being deployed at scale. IDC predicts that by 2030, billions of AI agents will enter the workforce. Global humanoid robot shipments are expected to grow by about 508% year-on-year in 2025. The deep coupling of energy, computing power, data, and manufacturing is reshaping corporate cost structures. By 2030, global data center electricity demand will be 175% higher than in 2023.
Experience Economy: Consumer Demand from Function to Emotion
Global consumption is characterized by ecological restructuring, human-centric return, and structural differentiation. Consumers are increasingly segmented, with health, emotional connection, and self-expression becoming core demands. Social media accelerates information generation and dissemination, making product discovery and comparison increasingly intelligent.
The wool industry must respond to these changes. The global popularity of Chinese-style trends, with brands like Anta and SHEIN entering the world's top 500, and companies like Hengli and Erdos expanding through cross-border M&A and multi-brand operations, shows that branding has become a new value driver.
From January to April this year, retail sales of garments, footwear, and textiles above designated size reached 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the previous year. Profits of above-scale enterprises rose 19.3% year-on-year, with a profit margin of 2.9%. These figures suggest resilience despite headwinds.