One out of every five sweaters in the world is produced in Dalang, Dongguan. Behind this statistic lies an industrial cluster with an annual transaction value exceeding 72 billion RMB and garment output surpassing 900 million pieces—undergoing a profound transformation from traditional manufacturing to a dual-wheel drive of digitalization and greenization.
On June 24, the 95th International Wool Textile Conference opened in Dalang, themed 'Smart Weaving the Future: Wool's Health and Digital Life.' Sun Ruizhe, President of the China National Textile and Apparel Council (CNTAC), delivered a keynote speech signaling that the wool textile industry is no longer a simple continuation of a classical sector but a growth engine driven by new technology, consumption, and culture. For global buyers and factories, understanding the underlying logic of this shift is more critical than focusing on short-term order fluctuations.
Industry Data Reflects Deep Pressure and Resilience
The 'certainty' that China's textile industry provides to the global supply chain is being tested. Latest public industry data shows that from January to April, revenue of textile enterprises above designated size fell 0.3% year-on-year, but total profit surged 19.3%, with a profit margin of 2.9%. This contrast indicates that the industry is digesting external pressures through product structure upgrades and cost control.
Specific to wool-related categories, from January to May, total textile and apparel exports stood at $116.73 billion, up 0.1% year-on-year. Textile intermediate goods (including fabrics and yarns) reached $59.48 billion, up 1.7%, while apparel exports fell 1.6% to $57.24 billion. This divergence suggests that intermediate goods exports are far more resilient than finished products, accelerating the 'de-terminalization' trend in the global supply chain—brands prefer semi-finished materials for local processing to mitigate tariffs and logistics risks.
Investment data is equally telling. From January to May, fixed asset investment in the textile sector grew 10.8% year-on-year, while apparel and chemical fiber sectors shrank 10.3% and 14.5%, respectively. Capital is flowing from terminal manufacturing to upstream segments like fabrics and yarns, indicating that the industry's capacity center will further concentrate upstream in the coming years.
Smart Economy and Experience Economy: Two New Paradigms
Sun Ruizhe proposed two development paradigms at the conference—smart economy and experience economy—directly answering how traditional wool textiles can avoid being replaced.
In the smart economy dimension, artificial intelligence is reshaping the entire chain of wool textile design, production, and management. A notable case is Jiangsu Yueda Textile's 'Lighthouse Factory': through smart manufacturing, labor per 10,000 spindles dropped by about 70%, overall labor productivity increased more than fourfold, energy consumption per unit fell 15%, and processing costs decreased 26%. This implies that digitalization is no longer an option but a threshold for cost competitiveness.
Another key trend is the penetration of 'generative business logic.' Semir's AI-assisted design system boosted R&D efficiency by 35% and pattern design efficiency by over 200%; Bosideng's 'AI Aesthetics Brain' reduced sample development costs by over 60%. These figures reflect a shift in industrial logic: wool product design cycles are shrinking from seasons to weeks, making small-batch, multi-variety, rapid-response capabilities the core competitive edge for exporters.
In the experience economy dimension, consumer demands for wool products are migrating from thermal functionality to health, emotional connection, and self-expression. Social media accelerates information dissemination, making product discovery and decision-making increasingly intelligent. The takeaway for wool buyers is that pure 'cost-performance' strategies are failing—products must embody stories, craftsmanship, and sustainability.
The Dalang Model: How Industrial Clusters Support Global Supply
Dalang, as a renowned Chinese wool knitting town, offers a replicable model for the global wool industry. With a full-industry-chain annual transaction value of 72 billion RMB and garment output of 900 million pieces, this scale itself is a footnote to the global competitiveness of 'Made in China.'
More importantly, Dalang's green manufacturing transformation is accelerating with technologies like waterless dyeing and digital printing. For international brands facing growing carbon footprint compliance pressures, the green level of clusters like Dalang directly determines whether they remain preferred procurement destinations.