One out of every five sweaters in the world is made in Dalang, a small town in Dongguan, Pearl River Delta. In 2024, the entire industrial chain of this town achieved an annual transaction value exceeding 72 billion yuan, with garment output topping 900 million pieces. As the 95th International Wool Textile Conference concluded here, a clear signal was sent: China's wool industry is providing certainty for the global supply chain through its scale advantages and systemic resilience, while accelerating its transition toward a new paradigm of digital intelligence and experience economy.
Industrial Foundation: Certainty Behind the Data
Public data from the China National Textile and Apparel Council shows that China's annual fiber processing volume remains stable at over 60 million tons, with annual garment production exceeding 70 billion pieces, accounting for more than 50% of the global total. Textile exports have surpassed 300 billion US dollars for six consecutive years, with strong exports of intermediate products such as chemical fibers and fabrics serving as a ballast for global supply chain stability. From January to May 2025, textile and apparel exports reached 116.73 billion US dollars, up 0.1% year-on-year, with textile exports growing by 1.7%. Behind these numbers lies the irreplaceability built on scale effects and full industrial chain supporting capabilities.
Even in the first four months of 2025, while operating revenue of enterprises above designated size dipped 0.3% year-on-year, total profit bucked the trend with a 19.3% increase, achieving an operating profit margin of 2.9%. This improvement in profit margins indicates that the industry is shifting from simple scale expansion to efficiency and value enhancement. Retail sales of clothing, shoes, hats, and knitwear by units above designated size grew 8.1% year-on-year, demonstrating that the resilience of the domestic market also provides a buffer for the global wool industry.
Smart Transformation: AI Reshaping Manufacturing and Design Logic
The conference theme, 'Smart Weaving the Future: Wool's Health and Digital Life,' is far from an empty slogan. The digitalization rate of key links in China's textile industry has reached 63.2%, higher than the national average for manufacturing. In 2024, 30 textile enterprises were selected for the 5G Factory List. The 'Lighthouse Factory' case of Jiangsu Yueda Textile is particularly compelling: labor per 10,000 spindles was reduced by approximately 70%, overall labor productivity increased more than fourfold, unit energy consumption dropped 15%, and processing costs fell 26%. This means that investment in smart manufacturing is translating into quantifiable cost advantages.
AI's penetration in the design phase is equally rapid. Semir's AI-assisted design system boosted overall design and development efficiency by 35%, with pattern design efficiency improving over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by more than 60%. For buyers, these changes mean shorter lead times, greater customization flexibility, and lower development risks. For factories, unmanned operations in non-standard flexible processes, such as autonomous robotic folding of garments, are rewriting the balance between labor costs and production efficiency.
Paradigm Shift: From Product Manufacturing to Experience Economy
The global consumer market is undergoing an ecological restructuring. Consumer stratification is becoming more pronounced, with health and well-being, emotional connection, and self-expression becoming core demands. As a representative of natural fibers, the wool industry naturally aligns with this trend. However, the challenge lies in translating the 'health attributes of wool' into tangible consumer experiences.
Annuoqi's industrial ecosystem layout offers a noteworthy example: from dyes to inks, and then to digital printing, AI design, and IP cultural creativity. Traditional wool enterprises are extending their industrial chain into content and experience. This reflects a new competitive logic driven by the deep coupling of 'energy, computing power, data, and manufacturing.' Gartner predicts that global full-stack AI procurement spending will reach a staggering 2.59 trillion US dollars by 2026. For the wool industry, data assets such as process parameters, production data, and market feedback are becoming as important as yarn and dyes.