One out of every five sweaters worldwide comes from Dalang, Dongguan. This Pearl River Delta woolen knitting town produces over 900 million garments annually, with the entire industrial chain generating more than 72 billion yuan in transactions. At the just-concluded 95th International Wool Textile Congress, these figures were placed within a broader narrative: as natural fibers meet digital technology, the wool industry is transforming from a classic manufacturing sector into a growth engine driven by new technology, new consumption, and new culture.
Industrial Landscape: China's Manufacturing as a Stabilizer
Sun Ruizhe, President of the China National Textile and Apparel Council, presented a set of key data: China processes over 60 million tons of fiber annually and produces more than 70 billion garments, accounting for over 50% of the global total. Textile and apparel exports have exceeded $300 billion for six consecutive years, with strong exports of intermediate goods like chemical fibers and fabrics providing stable support for global supply chains. This means that even amid slow global economic growth and frequent geopolitical conflicts, China's textile industry continues to act as a stabilizer.
Internally, structural upgrades are accelerating. R&D spending intensity among above-scale enterprises rose from 1% in 2020 to 1.3% in 2024, and the digitalization rate of key processes reached 63.2%, higher than the national manufacturing average. In 2024, 30 textile companies were included in the 5G factory list. These indicators suggest the industry is shifting from a purely scale-driven model to one combining technology and scale.
Paradigm Shift: The Dual Impact of AI and the Experience Economy
Another strong signal from the congress is that the wool industry faces a paradigm shift from manufacturing to a coexistence of intelligent and experience economies. Data shows the global AI market reached $757.58 billion in 2025, projected to exceed $900 billion by 2026. China's daily token calls exceeded 140 trillion, up over 40% from the end of last year. Behind these figures lies a fundamental change in industrial logic.
In textile production, the case of Jiangsu Yueda Textile's 'lighthouse factory' is instructive: through smart manufacturing, labor per 10,000 spindles decreased by about 70%, total labor productivity increased more than fourfold, energy consumption fell 15%, and processing costs dropped 26%. Semir's AI-assisted design system boosted design efficiency by 35% and pattern design efficiency by over 200%. This means processes once reliant on manual experience are being replaced by algorithms and data, enabling flexible manufacturing and customization.
Meanwhile, the rise of the experience economy is reshaping consumer demand. Consumers are increasingly stratified, with health, emotional connection, and self-expression becoming core demands. Wool products, as representatives of natural fibers, align perfectly with this trend. The congress theme, 'Wool Health and Digital Life,' precisely addresses this consumption upgrade.
Brand Globalization: From OEM to Cultural Export
In global expansion, Chinese textile enterprises are undergoing a qualitative change. Brands like Anta and Shein have entered the GYBrand World Top 500, while Hengli, Weiqiao, Erdos, and Shenzhou International have deepened international cooperation through cross-border M&A and global capacity deployment. This 'going global' is no longer simple capacity transfer but a systematic output of brand power, design capability, and supply chain strength.
The global popularity of Chinese-style trends provides a new value anchor for Chinese design. As products shift from 'Made in China' to 'Brand from China,' their premium space and risk resilience increase. For the wool industry, this means building product matrices with stronger cultural identity beyond traditional cashmere and wool products.