One out of every five sweaters worldwide is produced in Dalang, a small town in Dongguan. Its annual garment output has exceeded 900 million pieces, with a total supply chain transaction value of 72 billion yuan. At the 95th International Wool Textile Conference, held on June 24, this statistic was repeatedly cited as a microcosm of openness and agglomeration, and as living evidence of global wool industry interconnection.
Industry Resilience: Profits Surge 19.3%
Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), disclosed a set of key data in his keynote speech: from January to April this year, revenue of textile enterprises above designated size decreased by 0.3% year-on-year, but total profits surged 19.3%, with an operating profit margin of 2.9%. During the same period, retail sales of clothing, shoes, hats, and knitwear by units above designated size totaled 5121.3 billion yuan, up 8.1% year-on-year, 5 percentage points higher than the same period last year. This indicates strong demand-side performance, while profit margin improvement stems from structural optimization and cost control.
However, the divergence in investment is noteworthy. From January to May, fixed asset investment in the textile industry grew 10.8% year-on-year, while that in the garment and chemical fiber industries fell 10.3% and 14.5% respectively. This reflects capital shifting from traditional garment manufacturing to high-value-added textile segments, while the pressure of overcapacity in chemical fibers continues to ease.
Intelligent Economy: From Lighthouse Factories to Digital Employees
The conference theme 'Smart Weaving Future' is not empty rhetoric. Sun Ruizhe cited multiple implemented intelligent cases: Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, increased total labor productivity by over four times, reduced unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-assisted design system improved overall design R&D efficiency by 35%, with pattern design efficiency up by over 200%. Bosideng's 'AI Aesthetics Brain' reduced sample development costs by over 60%.
These cases point to a core judgment: AI is transforming from an auxiliary tool to the central hub of production systems. The global AI market is projected to reach $757.58 billion in 2025, up 18.7% year-on-year, and exceed $900 billion by 2026. In China, daily token calls have surpassed 140 trillion, up over 40% from the end of last year. The batch deployment of AI agents is giving rise to 'digital employees' as a new labor form. IDC predicts that billions of AI agents will enter the workforce by 2030.
For the wool industry, this means every link from raw material sorting, spinning, weaving to finishing could be redefined by intelligent systems. Local Dalang enterprises that pioneer AI quality inspection and flexible scheduling will secure a stronger position in the global sweater supply chain.
Experience Economy: Consumption Stratification and Brand Value Reconstruction
Another core topic at the conference was the 'experience economy'. Sun Ruizhe noted that the global consumer market is characterized by ecological reconstruction, human-centric return, and structural differentiation. Consumer segmentation is increasingly pronounced, with health, emotional connection, and self-expression becoming core demands. Social media accelerates information generation and dissemination, making product discovery, comparison, and decision-making more intelligent.
This trend has clear implications for wool brands: the traditional large-scale standardized production model is becoming obsolete, replaced by small-batch, multi-style, fast-response flexible supply chains. Companies like Anta and SHEIN have entered the 2026 GYBrand World's Top 500 Brands, proving that Chinese brands are competitive in the global experience economy. Firms like Hengli, Weiqiao, Erdos, and Shenzhou International are transforming 'Chinese design' into global value through cross-border mergers and global expansion.
Practical Recommendations
For Buyers - Prioritize AI-driven flexible supply chains: Select suppliers with intelligent scheduling and AI quality inspection to significantly shorten lead times and reduce defect rates. - Invest in functional wool categories: Increase procurement of functional wool products (e.g., antibacterial, traceable) to match mid-to-high-end market demand. - Leverage data tools for selection: Use AI-assisted design platforms for virtual sampling and market testing to minimize inventory risk.
For Foreign Trade Enterprises - Invest in digital employees and automation: Introduce robots or AI agents in sorting and packaging to address rising labor costs and skill shortages. - Strengthen brand narrative: Build a traceable and sustainable supply chain story around 'Wool Health and Digital Life' to command premium pricing from overseas clients. - Mitigate investment divergence risks: Exercise caution in chemical fiber and garment manufacturing investments, and allocate resources toward intelligent transformation and green dyeing technologies.
Conclusion
The signals from the Dalang conference are clear: the wool industry stands at the cusp of a paradigm shift. On one side is the short-term resilience of 19.3% profit growth; on the other is the long-term restructuring driven by AI agents and flexible manufacturing. For buyers and foreign trade enterprises, now is the critical window to reassess supply chains and embrace the dual transformation of intelligence and experience.