One out of every five sweaters globally is produced in Dalang, Dongguan. This statistic anchors China's wool textile industry at the center of global supply chains. The 95th International Wool Textile Conference concluded here, signaling that the sector stands at a critical juncture, transitioning from traditional manufacturing to a paradigm driven by intelligence and experience economy.
Quantitative Support from Industrial Clusters
Dalang, a renowned wool knitting town in China, produces over 900 million garments annually, with the entire industrial chain's transaction value exceeding RMB 72 billion. This scale reflects not just agglomeration but an efficient closed loop from raw material procurement to finished garment export. Nationally, China's textile industry processes over 60 million tons of fiber and produces more than 70 billion garments each year, accounting for over half of global output. Exports have surpassed USD 300 billion for six consecutive years, with intermediate goods like chemical fibers and fabrics being particularly strong. These figures underscore China's role not only as a final product exporter but also as a crucial 'middleware' supplier for global supply chains.
Paradigm Shift Under the Intelligent Economy
The conference theme, 'Intelligent Weaving for the Future: Wool's Health and Digital Life,' is far from a mere slogan. The global AI market reached USD 757.58 billion in 2025, growing 18.7% year-on-year, and is projected to exceed USD 900 billion by 2026. This external technological wave is compelling the wool industry to redefine its core competencies. A telling indicator is that the digitalization rate of key processes in the textile sector has hit 63.2%, above the national manufacturing average. This means intelligence is not a future option but an ongoing reality. In wool-specific areas, technologies like intelligent quality inspection, flexible manufacturing, and AI-assisted design have moved from concept to production line. For instance, Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, boosted labor productivity over fourfold, cut unit energy consumption by 15%, and lowered processing costs by 26%. These cases demonstrate that digital investment is beginning to yield efficiency dividends.
However, challenges persist: from January to April 2025, revenue of large-scale textile enterprises fell 0.3% year-on-year, while total profit rose 19.3%, but the profit margin on revenue was only 2.9%. This reflects a delicate balance between scale expansion and cost pressure. Investment divergence is more pronounced: fixed asset investment in the textile industry grew 10.8%, while that in apparel and chemical fiber fell 10.3% and 14.5%, respectively. Capital is tilting toward technology-intensive segments, while labor-intensive garment manufacturing faces outward migration pressure.
Consumer Market Restructuring and Brand Value Reassessment
Global consumer markets are undergoing ecological restructuring. Consumer segmentation is sharpening, with health, emotional connection, and self-expression becoming core demands. For the wool industry, this means leveraging the natural 'health' and 'sustainability' attributes of wool. But raw material advantages alone are insufficient; branding capability is key to capturing value. Chinese textile firms have ventured into global branding: Anta and Shein have entered the top 500 global brands; companies like Hengli and Erdos are deeply engaged in global cooperation through cross-border M&A and multi-brand operations. Yet overall, high-end wool brands remain dominated by traditional European houses. Chinese wool enterprises must transition from 'OEM providers' to 'co-brand builders,' converting manufacturing prowess into brand premium.