Wool Industry Enters Era of Digital and Health Dual Drive: Three Structural Changes Revealed at Dalang Conference

The 95th International Wool Textile Conference, held on June 24 in Dalang Town, Dongguan, served as a critical barometer for the global wool industry. Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), delivered a keynote that went beyond industry reviews, directly highlighting two paradigm shifts: the smart economy and the experience economy. For any sourcing manager or factory relying on wool supply chains, these shifts will define survival strategies for the next 3-5 years.

The Changing Logic of Industrial Clustering

Dalang's data alone sends a strong signal. The town produces over 900 million garments annually, with a full-chain transaction value exceeding 72 billion yuan. One out of every five sweaters globally originates from Dalang. This level of clustering has historically relied on labor costs and scale, but Sun's speech made it clear that the next competitive edge will come from digitalization and green manufacturing.

Dalang exemplifies that clustering is no longer just geographical concentration; it is now about the convergence of data, capital, and innovation. For buyers, sourcing from such clusters means easier access to smart workshops, AI quality inspection, and flexible manufacturing, which reduces lead times and trial costs.

Technology Penetration from Support to Dominance

R&D spending intensity among China's large-scale textile enterprises rose from 1% in 2020 to 1.3% in 2024. While seemingly modest, it underpins a growing network of innovation platforms: two national manufacturing innovation centers, five key laboratories, and 105 enterprise technology centers. More tellingly, the digitalization rate of key processes across the industry reached 63.2%, above the national manufacturing average. In 2024, 30 textile enterprises were included in the national 5G factory list.

For the wool sector, this translates into concrete impacts. Green technologies like non-aqueous dyeing and digital printing are accelerating adoption, directly affecting compliance costs and order flexibility. AI-assisted design systems at leading firms like Semir and Bosideng have improved design efficiency by over 35% and reduced sample development costs by more than 60%. These technologies are no longer 'nice-to-have' but core to cost control and quality consistency.

Consumption Divergence Demands Supply Chain Response

Sun introduced the concept of the 'experience economy,' noting that global consumer markets are fragmenting. Health, emotional connection, and self-expression are becoming core demands. For wool, this is a natural fit: wool's inherent health and sustainability attributes align perfectly with the conference theme, 'Smart Weaving Future: Wool's Health and Digital Life.'

Domestic data supports this trend. Retail sales of apparel, footwear, and knitwear above a designated size grew 8.1% year-on-year in the first four months, 5 percentage points faster than the same period last year. However, garment exports fell 1.6%, while textile exports grew 1.7%. This divergence indicates rising domestic demand for high-value, functional wool products, while exports face price and trade barrier pressures.

Practical Recommendations

For Sourcing Managers - Prioritize suppliers in digitally advanced clusters like Dalang or Puyuan, which offer faster sampling and small-batch flexibility. - Evaluate suppliers' investment in green technologies (e.g., non-aqueous dyeing), as this directly affects future export compliance and brand premium. - Incorporate AI design capability as a new supplier metric to reduce sample development cycles and costs.

For Factory Managers - Accelerate digital transformation in key processes like quality inspection and production scheduling to improve labor efficiency and reduce energy consumption. - Develop product lines with health and environmental attributes (e.g., traceable wool, low-emission dyeing) to match evolving brand sourcing criteria. - Tap into the domestic consumption upgrade by focusing on functional knitwear, which typically offers higher margins than traditional export orders.