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Cluster story2026-06-12· 7 min read

Inside Puyuan: From Wool Market to World Hub

How a small market town in Zhejiang became the source of most of China's woolen knitwear — and what it means for buyers.

By Puyuan Fashions Editorial

A market that became an industry

Puyuan's story begins in 1988 with a roadside wool market. Four decades later it operates around 20 specialised markets and hosts a full vertical chain — yarn trading, dyeing, knitting, finishing and garment assembly — within a few square kilometres.

Public industry reports estimate that around 7 in 10 woolen sweaters produced in China come from Puyuan, with annual market transactions in the hundreds of billions of yuan.

Why density matters to buyers

Density means options: yarn suppliers, sampling workshops and factories within walking distance. It means a buyer can compare three factories on the same day, and a rejected style can be re-sourced without losing a season.

The digital layer

The challenge has never been capability — it is discoverability and trust. Platforms like Puyuan Fashions add the missing layer: structured profiles, verification and a direct inquiry channel between global buyers and the cluster's best suppliers.

Ready to plan your next season?

Join the platform and shortlist suppliers within minutes — free for buyers.