One out of every five sweaters worldwide is produced in Dalang, Dongguan. Behind this statistic lies an industrial cluster with an annual output of over 900 million garments and a total supply chain transaction value exceeding 72 billion RMB. The 95th International Wool Textile Conference chose Dalang as its venue for a reason—it is a living example of how Chinese textiles have integrated into the global supply chain.
What deserves more attention, however, is the signal sent at this conference: as natural fibers meet digital technology and health-conscious consumption merges with green responsibility, the wool textile industry is transforming from traditional manufacturing into a new growth paradigm that combines technology, consumption, and culture.
Event Background
On June 24, the 95th International Wool Textile Conference opened in Dalang, Dongguan. Sun Ruizhe, President of the China National Textile and Apparel Council, delivered a keynote speech outlining the role and transformation path of China's textile industry in the global supply chain. The conference theme, 'Smart Weaving the Future: Wool's Health and Digital Life,' precisely captures the two core variables currently reshaping the wool textile industry: digital penetration and sustainable consumption upgrades.
Dalang's rise is a microcosm of China's textile globalization after reform and opening up. From OEM to independent design, from single production to full-chain collaboration, the town has gathered over 10,000 wool knitting enterprises, forming a complete ecosystem from yarn and fabric to finished garments. Behind the annual transaction value of 72 billion RMB is the dual effect of open cooperation and industrial agglomeration.
Industry Impact
The sheer scale of China's textile industry determines its anchoring role in the global supply chain. With annual fiber processing stable at over 60 million tons, garment production exceeding 70 billion pieces, and exports exceeding $300 billion for six consecutive years, these figures reflect the superposition of scale and system advantages. However, data from January to May 2025 reveals structural divergence: textile exports grew 1.7% year-on-year, while garment exports fell 1.6%, indicating stronger resilience in intermediate goods and pressure on the final consumer market.
On the profit side, revenue of above-scale enterprises fell 0.3% year-on-year, but total profits rose 19.3%, with the profit margin improving to 2.9%. This suggests that companies have made progress in cost reduction and efficiency optimization rather than relying solely on scale expansion. Retail sales of garments, shoes, hats, and textiles by units above the designated size grew 8.1% year-on-year, an increase of 5 percentage points over the same period last year, indicating a recovery in domestic demand.
Digital transformation is a key driver of efficiency improvement. The digitalization rate of key links in the entire industry reached 63.2%, higher than the national average for manufacturing. In 2024, 30 textile enterprises were included in the 5G factory directory. For example, Jiangsu Yueda Textile's smart factory reduced labor per 10,000 spindles by about 70%, increased total labor productivity by more than four times, reduced unit energy consumption by 15%, and lowered processing costs by 26%. This 'cost reduction and efficiency improvement' model is becoming the industry standard.
The penetration of artificial intelligence is accelerating further. Semir's AI-assisted design system improved overall design and R&D efficiency by 35%, with pattern design efficiency increasing by more than 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. These cases show that AI has moved from concept to actual production, directly changing companies' cost structures and competitiveness.
But challenges are equally evident. Factors such as low global economic growth, geopolitical conflicts, and energy fluctuations have led the IMF to lower its global economic growth forecast for 2026 to 3.1%. As a high-end segment of the textile industry, the wool sector is more sensitive to changes in consumer confidence and trade policies. The 1.6% year-on-year decline in garment exports from January to May 2025 serves as a warning signal.
Practical Recommendations
For Buyers - Prioritize suppliers with a digitalization rate above 60% in key links, as they demonstrate stronger risk resistance and on-time delivery. - Collaborate with factories equipped with AI design tools to compress sample development cycles from 4-6 weeks to 1-2 weeks, reducing development costs. - Diversify sourcing across Southeast Asia and China to balance cost and supply chain security. Dalang's wool cluster retains irreplaceable advantages in quick response.
For Foreign Trade Companies - Strengthen intermediate goods exports: textile exports (yarn, fabric) grew 1.7% year-on-year, indicating stable demand. Focus on semi-finished and customized fabric exports. - Invest in green technology certifications: non-aqueous dyeing and digital printing are becoming mandatory for international buyers. Early certification improves bargaining power and order stability. - Leverage industrial internet platforms for transparent supply chains: full-process digitalization allows real-time display of production progress, energy consumption, and carbon emissions data, enhancing trust with clients.
The global wool textile industry stands at the intersection of old and new paradigms. Digitalization is not a choice but a survival imperative. Those who first achieve the closed loop of 'AI design + smart factory + green processes' will gain the upper hand in the next round of competition.