One in every five sweaters globally comes from Dalang, Dongguan. Behind this figure lies a full-industry-chain hub with an annual transaction value exceeding 72 billion yuan. On June 24, the 95th International Wool Textile Conference opened here, where Sun Ruizhe, president of the China National Textile and Apparel Council (CNTAC), delivered a keynote speech with a critical judgment: the global wool textile industry is standing at a node of dual paradigm shifts towards the intelligent economy and the experience economy.
Industry Fundamentals: Scale Advantage vs. Structural Pressure
The fundamentals of China's textile industry remain solid. According to public data from the National Bureau of Statistics, from January to April 2025, profits of above-scale textile enterprises rose 19.3% year-on-year, with the operating profit margin recovering to 2.9%. Retail sales of clothing, shoes, hats, and knitwear by units above the designated size reached 512.13 billion yuan, up 8.1% year-on-year, a 5-percentage-point increase over the same period last year. These figures suggest a moderate recovery in domestic demand.
However, signals from the investment side are more complex. From January to May, fixed asset investment in the textile industry grew 10.8% year-on-year, while the garment and chemical fiber sectors fell by 10.3% and 14.5% respectively. This divergence means upstream fiber processing and weaving are still expanding capacity, but downstream garment manufacturing and chemical fiber are undergoing active destocking or capacity relocation. For enterprises, this is both a risk signal and a window for structural adjustment.
Export performance was stable. From January to May, textile and apparel exports totaled USD 116.73 billion, a slight increase of 0.1% year-on-year. Textile exports were USD 59.48 billion, up 1.7%; apparel exports were USD 57.24 billion, down 1.6%. This structural shift reflects that China's intermediate textile products (fabrics, yarns) remain highly competitive internationally, while garment exports face sustained pressure from capacity relocation to Southeast Asia.
Technology Variables: Intelligent Economy Reshapes Industry Comparative Advantage
Sun highlighted the penetration path of AI into the textile industry. The global AI market is expected to reach USD 757.58 billion in 2025, up 18.7% year-on-year. In China, daily token calls have exceeded 140 trillion. This means 'intelligence' is transforming from concept to production factor.
Specific technology landing points are already clear. Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, increased overall labor productivity by more than four times, cut unit energy consumption by 15%, and reduced processing costs by 26%. Semir's AI-assisted design system boosted overall R&D efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by more than 60%.
These cases show that AI applications in textiles have moved from concept validation to scale replication. For procurement parties, this means that within the next two years, companies with digital capabilities will form a generational advantage in cost, delivery, and flexible production. Small and medium OEM factories without digital transformation capabilities will face order loss pressure.
Industry Ecosystem: From Single Manufacturing to Full-Stack Collaboration
Another noteworthy change is the reorganization of the industrial ecosystem. Sun mentioned that Anoky is building an industrial loop from 'dyes → inks → digital printing → AI design → IP cultural creativity.' This cross-link integration is not an isolated case—it reflects the textile industry's transition from a linear value chain to a networked ecology.
Data is becoming a new production factor. Process parameters, production processes, and market feedback are deposited as manageable, callable, and value-added data assets. AI agents are beginning to embed into key scenarios such as design and R&D, flexible manufacturing, and energy saving and carbon reduction. IDC predicts that by 2030, billions of AI agents will enter the workforce as new digital labor.
For the wool textile industry, this means the traditional 'wool-spinning-weaving-dyeing-garment' chain will be redefined. Whoever seizes the lead in data collection, model training, and scenario implementation will gain pricing power and discourse power in the next round of competition.
Consumer Side: Experience Economy Forces Supply Chain Upgrade
The global consumer market is undergoing ecological restructuring. Consumers are increasingly stratified and segmented, with health and well-being, emotional connection, and self-expression becoming core demands. Social media accelerates information generation and dissemination, and product discovery, comparison, and decision-making are becoming increasingly intelligent.
What does this mean for the wool textile industry? Wool, as a natural fiber, has a natural advantage in health consumption and sustainable fashion trends. But advantages do not automatically translate into market share. Brands need stronger design capabilities, shorter development cycles, and more transparent supply chain traceability. If Dalang's knitting industry cluster can upgrade from 'one in five sweaters globally produced in Dalang' to 'one in five high-end sweaters globally designed and developed in Dalang,' it can gain a premium in the experience economy.