Through the observation of towel design process and work from fashion design students, this research probed the application of “the creative inspiration design process model derived from the habitual domains' innovation concept” to an industry-academy cooperation case of towel design. The goal is to enable designer to bring out more creative thinking and energy to reach win-win-win target of the industry, government, and academy. This research identified the following: 1) During the design preparation phase-students often apply ‟active learning” and ‟retreating” from eight basic methods, and ‟inner-connection principle” from nine principles to enhance the spiritual dimension and to complement the design. Meditation, deep and down principle, and void principle were rarely used by students. 2) During the design process phase-‟active association” and ‟alternating principle” were often used in developing creativity, followed by ‟contrasting and complementing principle”, “contradiction principle”, “brain storming”, “changing the relevant parameters”, and “changing the environment”. Rarely used by students were “revolving and cycling principle” and “changing and transforming principle”. 3) During the design completion phase-“Projecting from a higher position”, “contradiction principle”, and “brain storming” were used to inspect design work. Only one student applied the “cracking and ripping principle”. Upgrading the design capability of towel industry is an underlying investment. It requires long term improvement, enlightenment, and engagement. Although it's difficult to meet the short term expectations, long term enhancement of habitual domains can establish the brand core values and benefit towel producers.