As an important knitted garment production area in China, Tongxiang knitted garment market has a good production base. However, with the adjustment of supply and demand and changes in consumer demand, the existing knitted garment industry needs to adapt to the development of the times to carry out the corresponding industrial upgrading. This paper focuses on the existing knitted garment industry problems, such as: lack of innovation in knitted garment design, lack of brand competitiveness in the knitted garment market and inaccurate industrial positioning. Try to put forward to the use of design innovation, increase research and development efforts to improve the comprehensive ability of knitted garment enterprises; training of professional knitted garment design talent, and increase investment in science and technology so as to improve product quality and market taste; will be the neighboring regions of the garment industry organically combined together to drive the upgrading of the development of industrial proposals and countermeasures. Design and innovation as the driving force, better development of knitted garment industry in Tongxiang City.