One in every five sweaters worldwide comes from Dalang, Dongguan. Behind this statistic lies an industrial cluster with an annual transaction value exceeding 72 billion yuan and garment output surpassing 900 million pieces. On June 24, the 95th International Wool Textile Conference convened here under the theme 'Smart Weaving the Future: Wool's Health and Digital Life.' As natural fibers meet digital technology, the wool industry is undergoing a deep transformation from manufacturing to smart manufacturing.
The Certainty of Industrial Clusters
Dalang's rise mirrors China's integration into global textile supply chains. China processes over 60 million tons of fiber annually and produces more than 70 billion garments, each accounting for over 50% of global totals. Textile and apparel exports have exceeded $300 billion for six consecutive years, with strong shipments of intermediate goods like chemical fibers and fabrics providing stable support for global supply chains. This scale and system advantage makes China's textile industry a shock absorber for global volatility.
But scale alone is no moat. From January to April this year, revenue of large-scale textile enterprises edged down 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. Profit growth far outpacing revenue indicates a shift from quantitative expansion to qualitative improvement. Over the same period, retail sales of garments, footwear, hats, and knitwear at units above designated size grew 8.1% year-on-year, accelerating by 5 percentage points from the prior year, with domestic demand becoming the key driver of profit improvement.
The Turning Point of R&D Investment
R&D spending intensity rose from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024. This seemingly modest increase corresponds to a systemic upgrade of the entire manufacturing system. The digitalization rate of key industry links reached 63.2%, above the national manufacturing average. In 2024, 30 textile enterprises were listed in the 5G factory directory. These infrastructure investments are now translating into tangible economic returns.
A case in point: Jiangsu Yueda Textile's 'lighthouse factory' reduced labor per 10,000 spindles by about 70%, boosted total labor productivity by over four times, cut unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-aided design system raised overall design efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by more than 60%. These figures show that smart investments have entered a payoff phase.
Structural Divergence in Consumer Markets
Global consumption is undergoing ecological restructuring, human-centric regression, and structural divergence. Consumer segmentation is increasingly evident, with health, emotional connection, and self-expression becoming core demands. The wool industry sits at the intersection of these trends: wool as a natural fiber inherently carries health and sustainability attributes, while digital technology enables personalized customization and flexible production.
Export data confirms this divergence: from January to May, textile exports grew 1.7% year-on-year, while garment exports fell 1.6%. Stronger intermediate goods exports versus finished products suggest ongoing global supply chain adjustments, with China's role evolving from 'world factory' to 'global supply chain hub.' Investment patterns also diverge: fixed asset investment in textiles rose 10.8%, while apparel and chemical fibers fell 10.3% and 14.5% respectively. Capital is concentrating in technology-intensive links, while labor-intensive segments face pressure.
The Smart Economy Reshapes Industry Paradigms
Artificial intelligence is upgrading from a supporting tool to industrial infrastructure. The global AI market size in 2025 reached $757.58 billion, expected to exceed $900 billion by 2026. By 2030, global data center electricity demand will grow 175% from 2023. For textiles, this means a deep coupling of energy, computing power, data, and manufacturing is reshaping comparative advantages.
Annuoqi's practice is illustrative: from dyes to ink, then digital printing, AI design, and IP cultural creativity, building an industrial ecosystem of 'materials + digital + content.' This is not just product line extension but a fundamental shift in value creation logic—from selling fabrics to selling services and experiences.