One out of every five sweaters globally can be traced back to Dalang, Dongguan. This town, with an annual garment output exceeding 900 million pieces and a full-industry-chain transaction value surpassing 72 billion yuan, hosted the 95th International Wool Textile Conference in late June. As natural fibers meet digital technology, this traditional industrial cluster is becoming a prime lens through which to observe the transformation of the global wool textile industry.
Industry Foundation and Pressure Points
The sheer scale of China's textile industry remains a stabilizer for global supply chains. Public data shows that China's annual fiber processing volume exceeds 60 million tons, and annual garment production surpasses 70 billion pieces, both accounting for more than half of the global total. The textile sector has maintained exports exceeding 300 billion USD for six consecutive years, with robust exports of intermediate goods like chemical fibers and fabrics providing critical support to downstream production worldwide.
However, pressure has been evident this year. From January to April, revenue of enterprises above designated size dipped 0.3% year-on-year, yet total profit surged 19.3%, pushing the profit margin to 2.9%. This contrast suggests that while top-line growth is under pressure, companies are repairing profits through cost reduction and efficiency gains. Retail sales of garments, shoes, hats, and textiles by units above designated size totaled 512.13 billion yuan, up 8.1% year-on-year, signaling a recovery in domestic demand.
Investment patterns show divergence. From January to May, fixed asset investment in the textile sector grew 10.8% year-on-year, while the garment and chemical fiber sectors fell 10.3% and 14.5%, respectively. This indicates capital is shifting from downstream apparel manufacturing to upstream textile links, likely driven by smart manufacturing upgrades. On the export front, total textile and apparel exports reached 116.73 billion USD, up 0.1%, with textile exports rising 1.7% and apparel exports falling 1.6%, highlighting the resilience of intermediate goods over finished products.
Smart Economy Reshapes Production and Organization
AI's penetration into textiles is moving from concept to full-process implementation. Industry data shows that R&D investment intensity of textile enterprises above designated size has risen from 1% at the end of the 13th Five-Year Plan to 1.3% in 2024, and the digitalization rate of key links has reached 63.2%, above the national manufacturing average. In 2024, 30 textile firms were included in the 5G factory list.
Specific cases are more telling. 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-assisted design system improved overall design efficiency by 35% and pattern design efficiency by over 200%. Bosideng's 'AI Aesthetic Brain' reduced sample development costs by over 60%. These figures mean smart technology is no longer an embellishment but is restructuring cost structures and competitive barriers.
More profound changes lie in the reorganization of the industrial ecosystem. Some firms are building vertically integrated ecosystems from dyes to inks to digital printing to AI design to IP cultural products, turning process parameters, production flows, and market feedback into actionable data assets. Intelligent agents are embedding into key scenarios like design, flexible manufacturing, and carbon reduction, with digital employees entering production systems en masse.
Experience Economy Drives Consumption and Brand Upgrade
Global consumer markets are undergoing ecological restructuring. Consumer stratification is intensifying, 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. For the wool industry, purely functional fabrics no longer suffice; brands must deliver both emotional value and technological experience.
Chinese brands are accelerating upgrades in globalization. Anta and Shein have entered the world's top 500 brands, while Hengli, Weiqiao, Erdos, and Shenzhou International are deepening international division of labor through cross-border M&A and global layout. Chinese-style design language is moving from domestic to overseas, with 'Made in China' transitioning from a cost-effective label to one of value connotation.
For the wool textile industry, Dalang's agglomeration effect offers key insights. Behind the 72 billion yuan annual transaction value lies the power of open cooperation and industrial interconnection. When natural fibers meet digital technology and health consumption integrates with green responsibility, the wool textile industry is no longer just a continuation of a classic sector but a growth engine driven by new technology, new consumption, new culture, and new cooperation.