One in every five sweaters worldwide comes from Dalang, Dongguan. This small town, known for its wool knitting industry, produces over 900 million garments annually with a total industrial chain transaction value exceeding 72 billion RMB. It was here that the 95th International Wool Textile Conference was held, with the theme 'Weaving a Smart Future: Wool's Role in Health and Digital Life.' The theme is not just a slogan; it captures a fundamental shift: as natural fibers meet digital technology and health-conscious consumption merges with green responsibility, China's textile industry is transitioning from scale-driven growth to a dual engine of smart manufacturing and experience-driven innovation.
Scale Peaks, Technology Takes Over
At the conference, Sun Ruizhe, President of the China National Textile and Apparel Council, noted that China's textile industry has maintained exports over $300 billion for six consecutive years, producing over 70 billion garments annually—more than 50% of the global total. These figures highlight the strength of scale and system. However, the scale dividend is approaching its limit. From January to April this year, revenue of large-scale enterprises dipped 0.3% year-on-year, but profits surged 19.3%, with a profit margin of 2.9%. This seemingly contradictory data reveals a shift toward higher quality and added value.
R&D spending confirms this trend. R&D intensity among large-scale enterprises rose from 1% in 2020 to 1.3% in 2024. High-performance fiber capacity now accounts for over one-third of the global total, with applications expanding from traditional textiles to aerospace and marine engineering. China is no longer just the world's factory; it is becoming a key source of textile technology innovation.
Digitalization: From Tool to Infrastructure
A notable figure from the conference: the industry's digitalization rate in key processes reached 63.2%, above the national manufacturing average. In 2024, 30 textile companies were included in the 5G factory list. Digitalization is no longer an add-on; it is reshaping production infrastructure. The 'Lighthouse Factory' of Jiangsu Yueda Textile is a case in point: through smart manufacturing, labor per 10,000 spindles dropped by about 70%, labor productivity increased fourfold, energy consumption fell 15%, and processing costs decreased 26%.
Such efficiency gains are changing the industry's cost structure. The old logic of competing on labor cost is being replaced by a new mix of 'computing power, data, and manufacturing.' IDC predicts that by 2030, billions of AI agents will enter the workforce. The era of 'digital employees' in textiles has begun. Sun cited examples: Bosideng's 'AI Aesthetics Brain' cut sample development costs by over 60%, and Semir's AI-assisted design system boosted efficiency by 35%. AI is moving from concept to shop floor as a real productivity driver.
Export Divergence: Textiles Up, Apparel Down
From January to May, total textile and apparel exports reached $116.73 billion, up just 0.1% year-on-year. But the structure diverged sharply: textile exports (fabrics, chemical fibers) rose 1.7% to $59.48 billion, while apparel exports fell 1.6% to $57.24 billion. This reflects deep adjustments in global supply chains.
The strong performance of textile intermediates shows that China remains the 'backbone' of the global textile supply chain. The decline in apparel exports, however, is linked to order shifts to Southeast Asia and South Asia. This is not a loss of competitiveness but a rebalancing of global division of labor. China's textile industry is climbing the value chain from 'garment making' to 'materials, technology, and brands.' Sun noted that Anta and Shein have entered the GYBrand World Top 500, while Hengli and Erdos are deepening global participation through cross-border M&A and multi-brand operations. Brand going global is becoming a new growth engine.
Experience Economy: From Selling Products to Selling Lifestyles
The conference's theme of 'health and digital life' points to a broader trend: the experience economy is reshaping textile consumption. Consumers are no longer just buying a garment or fabric; they are buying a health concept, a digital identity, an emotional connection.
The global popularity of 'Guochao' (national trend) is one example. Chinese design and brands are gaining recognition. Social media accelerates information generation and sharing; product discovery, comparison, and decision-making are becoming increasingly intelligent. This requires textile companies not only to manufacture but also to 'tell stories' and manage user relationships. The conference proposed that the industry needs to find a value fulcrum and a way to break through. That fulcrum may well be a dual drive of 'technology plus culture.'