Taking Dong Li Cashmere as the research object, a case study method was adopted to explore the main mechanisms of all-encompassing interest-based E-commerce in helping traditional manufacturing enterprises transform and upgrade. The research has found that Dong Li Cashmere, as a traditional manufacturing enterprise, has transformed from an OEM factory to a leading manufacturing enterprise with independent brands and mastery of the entire cashmere textile industry chain which is with the help of all-encompassing interest-based E-commerce. Guided by the new model of all-encompassing interest-based E-commerce, Dong Li Cashmere enterprise has introduced flexible manufacturing and intelligent storage systems, built a digital supply chain for the enterprise, extended to high value-added links such as design, research and development, and brand operation, and then it has achieved transformation and upgrading of the enterprise.