One out of every five sweaters in the world comes from Dalang, a small town in Dongguan, Guangdong. In 2025, the total transaction value of its entire industrial chain exceeded 70 billion yuan, with annual garment production surpassing 900 million pieces. On June 24, the 95th International Wool Textile Conference opened here, themed 'Smart Weaving Future: Wool's Health and Digital Life.' As natural fibers meet digital technology, the wool textile industry stands at a tipping point, transitioning from traditional manufacturing to a dual-driven model of smart and experience economies.
The Industrial Base: Scale Advantage and Resilience Under Pressure
China's textile industry remains a global powerhouse: annual fiber processing exceeds 60 million tons, and garment production tops 70 billion pieces, each accounting for over 50% of the global share. Exports of textile and apparel have surpassed $300 billion for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics stabilizing global supply chains. However, 2025 data reveals headwinds. From January to April, revenue of large-scale enterprises dipped 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%, indicating effective cost control. Retail sales of apparel, footwear, and textiles above a designated size grew 8.1%, reflecting robust domestic demand. Investment diverged: textile fixed-asset investment rose 10.8%, while apparel and chemical fiber sectors fell 10.3% and 14.5% respectively, signaling a capital shift from capacity expansion to smart upgrades.
Dual Paradigm Shift: Smart Economy Meets Experience Economy
The conference's core insight is that the global wool textile industry is being reshaped by two forces. First, the smart economy paradigm. AI has moved from concept to deep application. The global AI market is projected to reach $757.58 billion in 2025, up 18.7% year-on-year. In textiles, AI permeates design, production, and management. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, boosted labor productivity fourfold, cut unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-assisted design system improved R&D efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. These cases show AI is a tangible tool for cost reduction and efficiency gains.
Second, the experience economy paradigm. Consumers increasingly demand health, emotional connection, and self-expression, with social media accelerating information and purchase decisions. This means wool products must carry cultural symbolism and health value beyond warmth and durability. Sun Ruizhe, President of CNTAC, emphasized that Chinese traditional aesthetics are gaining global traction, with brands like Anta and Shein entering the GYBrand World's Top 500. Chinese wool brands need to redefine 'Made in China' through design, quality, and storytelling.
Industry Impact: From Scale Competition to Value Competition
These paradigm shifts are transforming the competitive logic of the wool textile industry. Dalang's past strength came from cluster scale and cost advantages. Moving forward, winners will be those that can quickly respond to personalized demand, leverage data-driven decisions, and integrate green and health concepts. Data shows industry digitalization in key links has reached 63.2%, above the national manufacturing average; 30 enterprises have been included in the 5G factory list. Green manufacturing technologies like waterless dyeing and digital printing are accelerating. This means buyers and brands will increasingly prioritize suppliers' digital capabilities and green certifications over mere pricing.