The world's largest textile fabric trading market has delivered a semi-annual report that is both expected and revealing.
From January to June 2026, the transaction volume of Keqiao China Textile City in Shaoxing reached 237.068 billion yuan, a year-on-year increase of 9.26%. Behind this figure lies the simultaneous acceleration of the 'International Textile Capital' in three tracks: digitalization, specialization, and globalization.
Structural Divergence Behind the Growth
Breaking down the data reveals that growth is not evenly distributed. In Q1, transaction volume was 109.927 billion yuan, up 8.54% year-on-year. Q2 saw approximately 127.141 billion yuan, a 15.6% sequential increase, with the year-on-year growth rate also expanding. This suggests significantly higher market activity in Q2, closely aligned with the peak foreign trade season and new product launch cycles.
More noteworthy is the export performance. From January to May, market procurement trade exports reached $2.038 billion, a staggering 25.72% year-on-year increase. This growth rate far exceeds that of domestic trade, indicating that overseas channel expansion is becoming a new growth engine.
Digitalization as Infrastructure, Not a Label
The launch of the 'AI Cloth 3.0' intelligent system is the most iconic technological variable in this growth cycle. This system enables full-process digitalization from fabric search and sample comparison to online order placement. For a trade traditionally reliant on 'seeing and touching fabric,' this effectively moves thousands of offline booths into the cloud.
For buyers, this means an exponential increase in selection efficiency. Instead of visiting dozens of booths in a day, they can now compare hundreds of fabrics' specifications, prices, and inventory simultaneously through AI search.
Specialized Zones: From General to Focused
The Textile City is proactively adjusting its category structure. In the first half of the year, it expanded specialized blocks for outdoor functional fabrics and plush fabrics. This aligns with downstream consumption trends: the outdoor sports market continues to heat up, with functional fabric demand growing over 15% annually, while plush fabrics are finding wider applications in winter apparel and home goods.
Overseas Layout: From Merchant to Trader
The establishment of overseas operation centers and public overseas warehouses is a critical step in the Textile City's shift from 'waiting for customers' to 'actively going global.' Previously, overseas buyers had to travel to Keqiao for selection; now, with pre-positioned inventory in overseas warehouses, local delivery time is reduced to 2-3 days.