One out of every five sweaters in the world is produced in Dalang Town, Dongguan, Guangdong. This industrial hub, with an annual garment output exceeding 900 million pieces and a total industry chain transaction value surpassing 72 billion yuan, hosted the 95th International Wool Textile Conference in late June. As natural fibers meet digital technology and health-conscious consumption merges with green responsibility, the wool industry stands at a crossroads of transformation from classic manufacturing to a fusion of new technology and consumption.
Industry Foundation: Scale and Resilience
According to public data from the China National Textile and Apparel Council, from January to April 2025, revenue of textile enterprises above designated size edged down 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This contrast reveals the industry's ability to improve profitability through efficiency gains and structural optimization under pressure. During the same period, retail sales of clothing, footwear, hats, and textiles by units above designated size totaled 512.13 billion yuan, up 8.1% year-on-year, accelerating by 5 percentage points from the previous year, indicating strong domestic consumption resilience.
Exports showed divergence. From January to May 2025, total textile and apparel exports reached $116.73 billion, up 0.1% year-on-year. Textile exports were $59.48 billion, up 1.7%, while apparel exports fell 1.6% to $57.24 billion. This suggests China's role as a core supplier of textile intermediates (fabrics, chemical fibers) is strengthening, but finished garment exports face competition from emerging production bases like Southeast Asia.
Investment Divergence and Smart Manufacturing Acceleration
Fixed asset investment data reveals structural shifts. From January to May 2025, investment in the textile sector grew 10.8% year-on-year, while apparel and chemical fiber sectors declined 10.3% and 14.5%, respectively. Capital is concentrating on textile manufacturing, particularly smart and green upgrades. The digitalization rate of key links across the industry reached 63.2%, above the national manufacturing average. In 2024, 30 textile enterprises were listed in the 5G factory directory.
In the wool sector, smart manufacturing's cost-cutting effects are significant. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by 70%, boosted labor productivity fourfold, cut energy consumption by 15%, and lowered processing costs by 26%. For wool enterprises, investing in smart equipment is no longer optional but essential to cope with rising labor costs and order volatility.
New Paradigm Under Global Change: Dual Engines of Intelligence and Experience
The IMF has downgraded its 2026 global growth forecast to 3.1%, amid persistent uncertainties like geopolitical conflicts and energy volatility. In this context, the wool industry's value proposition is shifting from 'low-cost manufacturing' to a dual engine of 'intelligent economy' and 'experience economy.'
In the intelligent economy, AI permeates design, production, and management. Semir's AI-assisted design system boosted design efficiency by 35% and pattern design by over 200%; Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. For wool enterprises, this means rapid response from yarn color matching to pattern design and flexible production scheduling. Meanwhile, humanoid robot shipments grew 508% year-on-year, signaling accelerated unmanned operations in non-standard flexible processes.
In the experience economy, consumer demand for health, emotional connection, and self-expression is rising. Wool's natural fiber comfort and sustainability align perfectly with this trend. The conference theme 'Smart Weaving the Future: Wool's Health and Digital Life' directly addresses this consumer demand.