One out of every five sweaters globally comes from Dalang, a town in Dongguan, China. This woolen knitting cluster, with an annual garment output exceeding 900 million pieces and a full-industry-chain transaction value surpassing 72 billion yuan, hosted the 95th International Wool Textile Conference in late June. As natural fibers meet digital technology, and health-conscious consumption blends with green responsibility, the wool textile industry is no longer just a continuation of a classic sector but a growth engine driven by new technology, new consumption, and new cooperation.
The Industry's Foundation: Resilience Through Scale
China's textile industry provides stability for the global supply chain. Public data shows 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 robust exports of intermediate goods such as chemical fibers and fabrics providing solid support for global supply chain stability.
From January to April this year, revenue of textile enterprises above designated size fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This reversal from 'revenue growth without profit growth' indicates substantial progress in cost control and value-added products. Retail sales of garments, shoes, hats, and knitwear at units above a designated size totaled 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the previous year, providing a buffer for the industry.
Technological Leap: Intelligence and Green Transformation
R&D spending intensity in China's textile sector rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. While modest in percentage, the absolute value is significant given the industry's scale. Digitalization in key production links reached 63.2%, above the national manufacturing average. In 2024, 30 textile companies were included in the national 5G factory directory, and green technologies like waterless dyeing and digital printing are accelerating.
A typical case is Jiangsu Yueda Textile's 'Lighthouse Factory,' where smart manufacturing reduced labor per 10,000 spindles by about 70%, boosted full-factor labor productivity by more than four times, cut unit energy consumption by 15%, and lowered processing costs by 26%. For buyers, intelligence is no longer a luxury but a key tool for cost advantage and delivery reliability.
Market Divergence: Export Pressure and Brand Rise
From January to May, textile and apparel exports reached $116.73 billion, nearly flat at 0.1% growth. Textile exports rose 1.7% to $59.48 billion, while apparel exports fell 1.6% to $57.24 billion. The decline in apparel exports reflects structural divergence in global consumer markets—consumers favor either high-value basics or differentiated products with brand premiums.
Meanwhile, Chinese textile brands are gaining global traction. Anta and SHEIN have entered the GYBrand World's Top 500 Brands. Companies like Hengli, Weiqiao, Erdos, and Shenzhou International have shifted from product export to brand and capacity export through cross-border M&A and global production layout. For clusters like Dalang, this means enterprises must not only take orders but also define products with brand logic.
Paradigm Shift: AI and Experience Economy
The global AI market is expected to reach $757.58 billion in 2025, up 18.7% year-on-year. AI is reshaping design, production, and management in textiles. Semir's AI-aided design system boosted overall design efficiency by 35% and pattern design by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%.
For the wool industry, the natural fiber's health and sustainability attributes align perfectly with AI-enabled personalized customization and flexible production. As consumers increasingly seek experience and emotional connection, wool companies must shift from 'selling fabric' to 'selling solutions' and 'lifestyles.' Dalang's supply chain advantages, combined with AI design and small-order, fast-turnaround capabilities, could make it a new choice for global brands.