One out of every five sweaters in the world comes from Dalang, Dongguan, China. This wool knitting town achieved a whole-industry-chain transaction value exceeding 72 billion yuan last year, producing over 900 million garments annually. Behind these numbers lies a resilient sample of a traditional industrial cluster navigating global changes. The 95th International Wool Textile Organization (IWTO) Congress held here in late June revealed deep structural shifts underway.
The Deterministic Power of Industrial Clustering
Dalang's scale effect is not an isolated phenomenon. Public data from the China National Textile and Apparel Council shows the country produces over 70 billion garments annually, with fiber processing volume stable above 60 million tons, both accounting for over 50% of the global total. The textile industry has maintained exports above $300 billion for six consecutive years, with strong exports of intermediates like chemical fibers and fabrics providing fundamental support for global supply chain stability. From January to May this year, textile and apparel exports reached $116.73 billion, up 0.1% year-on-year, maintaining stability amid a complex trade environment.
This certainty is also reflected in investment. In the first four months of this year, although revenue of textile enterprises above designated size fell 0.3% year-on-year, total profit surged 19.3%, with the profit margin rising to 2.9%. Retail sales of garments, shoes, hats, and knitwear at units above the quota reached 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the same period last year. Profit growth far outpacing revenue indicates a shift from scale expansion to efficiency improvement.
Intelligent Economy Reshapes Manufacturing Paradigm
Intelligence is altering the cost structure of the wool textile industry. Industry public data shows that the digitalization rate of key processes has reached 63.2%, higher than the national manufacturing average. In 2024, 30 textile enterprises were included in the 5G factory list. Jiangsu Yueda Textile, for example, reduced labor per 10,000 spindles by about 70% through smart manufacturing, quadrupled labor productivity, cut unit energy consumption by 15%, and reduced processing costs by 26%. This means that as labor costs continue to rise, intelligent investment is becoming a new source of profit.
The penetration of AI goes deeper. Semir's AI-assisted design system increased overall design and R&D efficiency by 35%, with pattern design efficiency improving by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by more than 60%. These cases show that AI is not only impacting production but reshaping the entire value chain from concept to product. As 'digital employees' are deployed in batches, the labor model and cost structure of traditional textile enterprises will undergo fundamental changes.
Experience Economy and Consumption Segmentation
The global consumer market is showing signs of ecological restructuring, human-centric return, and structural differentiation. Consumer stratification is evident, with health, emotional connection, and self-expression becoming core demands. The wool textile industry naturally aligns with the experience economy wave due to its 'natural fiber + healthy consumption' attributes. The 8.1% year-on-year growth in retail sales above the quota from January to April indicates recovering end-consumer confidence, but with higher demands for product quality, brand stories, and sustainability.
Industrial Chain Transmission Effects
Dalang, as a core wool knitting industrial cluster, is transmitting its agglomeration effects upstream and downstream. On the raw material side, China's high-performance fiber capacity now accounts for over one-third of the global total, with applications expanding from traditional textiles to aerospace, marine engineering, and other high-end manufacturing. On the production side, green technologies like waterless dyeing and digital printing are accelerating adoption, improving overall resource efficiency. These changes mean the wool textile industry is shifting from 'cost competition' to 'technology plus brand' competition.