One out of every five sweaters globally is produced in Dalang, Dongguan. This statistic emerged at the 95th International Wool Textile Conference, backed by a total industrial chain transaction value of 72 billion yuan and an annual garment output of 900 million pieces. What deserves industry attention is not the scale itself, but how this industrial cluster epitomizes the restructuring of the global wool supply chain.
The Underlying Logic of Industrial Clustering Is Being Rewritten
Dalang's rise relies on the overall system advantage of China's textile industry. China's annual fiber processing volume remains above 60 million tons, with annual garment production exceeding 70 billion pieces, accounting for over 50% globally. For six consecutive years, export value has exceeded 300 billion US dollars, with intermediate goods like chemical fibers and fabrics providing rigid support to the global supply chain. However, data from January to May this year shows textile exports grew slightly by 1.7%, while garment exports fell by 1.6%, indicating subtle adjustments in foreign trade structure.
Behind this adjustment is a rebalancing of cost and efficiency. Dalang's clustering effect was once a cost advantage, but now smart manufacturing penetration has become a new competitive barrier. The industry's key process digitalization rate has reached 63.2%, higher than the national manufacturing average, with 30 textile enterprises included in the 5G factory list in 2024. The case of Jiangsu Yueda Textile is illustrative: labor per 10,000 spindles decreased by about 70%, total labor productivity increased more than fourfold, unit energy consumption dropped by 15%, and processing costs fell by 26%.
AI Is Reshaping the Entire Chain from Design to Dyeing and Finishing
The theme of the International Wool Textile Conference, 'Smart Weaving the Future: Health and Digital Life of Wool,' is not an empty slogan. AI's penetration into the wool industry has extended from auxiliary design to production management, quality inspection, and supply chain collaboration. Semir's AI-assisted design system improved overall design efficiency by 35% and pattern design efficiency by over 200%; Bosideng's 'AI Aesthetic Brain' reduced sample development costs by more than 60%.
More profound changes are occurring in production factors. Tokens are becoming a new production factor, and human-machine collaborative 'Token efficiency' is emerging as a new metric for organizational performance. Anoky has deployed AI computing power, building a complete ecosystem from dyes to inks, digital printing, AI design, and IP cultural creativity. This means the competitive dimension for wool enterprises is shifting from 'tonnage output' to 'Token efficiency,' from scale-driven to data-driven.
Simultaneously, green technologies are accelerating adoption. Non-aqueous dyeing and digital printing have improved resource utilization efficiency across the industry. For wool, a predominantly natural fiber category, environmental friendliness and sustainability are core selling points, and the integration of digitalization and green practices will reshape brand premiums.
Consumption Fragmentation Forces Supply Chain Flexibility
The global consumer market is undergoing ecological reconstruction. Consumers are increasingly stratified and segmented, with health, emotional connection, and self-expression becoming core demands. What does this mean for the wool industry? Wool, as a natural fiber, fits the health and sustainability trend, but traditional batch production models cannot meet personalized needs.
In Dalang's industrial ecosystem, flexible manufacturing capacity is becoming standard. Smart workshops, AI quality inspection, and industrial internet platforms enable small-batch, multi-variety, fast-turnaround order models. The global AI market is expected to reach 757.58 billion US dollars in 2025, up 18.7% year-on-year, and the intelligent economy is reshaping the industrial landscape. For wool enterprises, the ability to convert AI capabilities into flexible supply chains will determine their survival space in a downturn.
From January to April this year, revenue of textile enterprises above designated size fell 0.3% year-on-year, but total profit rose 19.3%, with a profit margin of 2.9%. The profit improvement reflects efficiency gains and cost control rather than demand expansion. Retail sales of garments, shoes, hats, and textiles by units above designated size grew 8.1% year-on-year, but fixed asset investments diverged: textile industry investment grew 10.8%, garment industry fell 10.3%, and chemical fiber industry fell 14.5%. This data indicates capital is flowing toward manufacturing, while a transmission lag persists between end consumption and upstream investment.