One out of every five sweaters globally is made in Dalang, Dongguan. This renowned wool-knitting town produces over 900 million garments annually, with a total industrial chain transaction value exceeding 72 billion RMB. Yet as the 95th International Wool Textile Conference opened here on June 24, the industry’s signal was not merely one of scale pride, but a structural dialogue on how digital genes can be embedded into traditional fibers. The conference theme, 'Smart Weaving the Future: Wool’s Health and Digital Life,' precisely captures the two core variables: how natural fibers can regain competitiveness through digital technology, and how health consumption and green responsibility are forcing a restructuring of the value chain. This is not a routine gathering, but a collective calibration of the global wool industry at a critical inflection point of growth momentum.
The Digital Transformation of the Industrial Base
Sun Ruizhe, President of the China National Textile and Apparel Council, disclosed key data: R&D investment intensity among China’s textile enterprises above designated size rose from 1% in 2020 to 1.3% in 2024, and the digitalization rate of key links across the industry reached 63.2%, above the national manufacturing average. In 2024, 30 textile companies were selected for the 5G factory list. These figures mean the digital foundation of the wool supply chain is moving from pilot projects to systematic deployment. Dalang’s 900 million sweaters, once reliant on labor intensity and industrial clustering, now depend on smart workshops, AI quality inspection, and industrial internet platforms. For example, Yueda Textile’s 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, boosted labor productivity fourfold, cut energy consumption by 15%, and lowered processing costs by 26%. Such cases are not isolated; they reveal a trend where competition in production efficiency is being replaced by competition in 'data efficiency.'
Smart Economy Reshaping Comparative Advantage
AI’s penetration of the wool industry extends far beyond production. On the design side, Semir’s AI-assisted design system improved 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%. In a traditional industry like wool, AI is shifting from a 'nice-to-have' to a 'must-have.' More disruptive is the reorganization of the industrial ecosystem. Anovox’s case is illustrative: starting from dye production, the company expanded into ink, digital printing, AI design, and IP cultural creativity, building a new value chain: dye → ink → digital printing → AI design → IP cultural creativity. This is no longer a traditional supply chain extension but a restructuring of the industrial ecosystem with data as the link and models as the engine. For wool enterprises, this means the competitive dimension is fundamentally changing: previously, competition centered on yarn quality, delivery time, and price; now it must incorporate computing power, algorithms, and data assets. By 2030, global data center electricity demand is expected to grow 175% from 2023, making computing cost a new rigid expense for manufacturing.
Consumption Segmentation and the Rise of the Experience Economy
From January to April this year, China’s retail sales of garments, shoes, hats, and knitwear by units above designated size totaled 512.13 billion RMB, up 8.1% year-on-year. Yet during the same period, revenue of enterprises above designated size fell 0.3% year-on-year, while profits surged 19.3%. This contrast of 'slight revenue decline, sharp profit rise' reveals a structural shift: low-value-added capacity is being eliminated, while high-value-added products and brand premiums are becoming the main engine of profit growth. Meanwhile, global consumer markets show characteristics of 'ecological restructuring, human-centric return, and structural differentiation.' Consumers are increasingly segmented, with health, emotional connection, and self-expression becoming core demands. For the wool industry, this means the 'health' attribute of wool as a natural fiber must be precisely communicated to end consumers through digital means. The conference theme 'Wool’s Health and Digital Life' directly responds to this trend.