One out of every five sweaters globally is made in Dalang, Dongguan. This small Pearl River Delta town showcased the astonishing energy of the wool industry at the 95th International Wool Conference with an annual garment output of 900 million pieces and a full-chain transaction value of 72 billion yuan. But more noteworthy than the numbers is the signal from the conference: when natural fibers meet digital technology and health consumption integrates with green responsibility, the wool industry is transitioning from classic to frontier, entering a growth cycle driven by intelligence and experience.
The Certainty Foundation of Industrial Clusters
Dalang's scale is not an isolated case. Public data from the China National Textile and Apparel Council (CNTAC) shows China's annual fiber processing volume stabilizes at over 60 million tons, with garment production exceeding 70 billion pieces, accounting for over 50% globally. Textile exports have surpassed $300 billion for six consecutive years, with strong exports of intermediate products like chemical fibers and fabrics providing solid support for global supply chain stability. In the first four months of 2025, despite industry pressure, profits of enterprises above designated size rose 19.3% year-on-year, with a profit margin of 2.9%. Retail sales of clothing, footwear, hats, and textiles by units above designated size grew 8.1% year-on-year. These figures indicate that despite external fluctuations, the scale advantage and system resilience of China's textile industry remain a 'ballast stone' for global industrial stability.
For the wool supply chain, this means stable procurement of upstream wool raw materials and efficient delivery of downstream garments. Buyers need not over-worry about supply chain disruptions but should monitor the efficiency of intermediate product price transmission.
Intelligent Economy: From Tool to Paradigm Shift
The conference theme 'Weaving a Smart Future' is no mere slogan. Industry public data shows the global AI market reached $757.58 billion in 2025, expected to exceed $900 billion by 2026. In China, daily token calls surpassed 140 trillion, up over 40% from end-2024. These macro figures have concrete applications in textiles: Jiangsu Yueda Textile's 'Lighthouse Factory' reduced labor per 10,000 spindles by about 70%, boosted labor productivity fourfold, cut unit energy consumption by 15%, and lowered processing costs by 26%. Semir's AI-assisted design system increased R&D efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%.
This means for wool enterprises, the intelligent economy is no longer just a cost-reduction tool but a new paradigm reshaping production organization, factor combinations, and even business models. From AI quality inspection to digital design and industrial internet platforms, the digitization rate of key links in the industry has reached 63.2%, higher than the national manufacturing average. The future belongs to those who can first turn process parameters and production data into callable data assets, gaining an edge in flexible manufacturing and rapid response.
Experience Economy: Consumption-Driven Supply Chain Upgrade
The global consumer market is showing overlapping trends of ecological restructuring and human-centric return. Consumer stratification is evident, with health, emotional connection, and self-expression becoming core demands. Social media accelerates information generation and dissemination, making product discovery, comparison, and decision-making increasingly intelligent. As a representative of natural fibers, the wool industry's health and environmental attributes naturally align with these trends.
But challenges persist. The IMF has downgraded its 2026 global economic growth forecast to 3.1%, with geopolitical conflicts, energy volatility, and shipping disruptions adding pressure. Revenue of textile enterprises above designated size fell 0.3% year-on-year in January-April, and garment exports dropped 1.6% in January-May. The coexistence of consumption upgrade demands and macroeconomic contraction pressures requires wool enterprises to find a more precise balance between cost control and value enhancement.
Green and Brand: Irreversible Competitive Dimensions
Green technologies like waterless dyeing and digital printing are accelerating adoption, improving resource efficiency. The green manufacturing system is no longer optional but a market access requirement, especially for EU exports. Meanwhile, Chinese fashion trends are gaining global traction, with Anta and SHEIN entering the world's top 500 brands. Companies like Hengli and Erdos are deeply involved in global cooperation through cross-border M&A. Brand building has shifted from an add-on to a must-do. For the wool industry, this means a role transformation from 'raw material supplier' to 'brand value co-creator.'