China Sewing Machine Industry: Industrial Adjustment Is Accelerating

With the accelerated development of the mainland market in 2007, more and more sewing machine enterprises began to shift their sales focus to the domestic market, and began to focus on developing their own brands. The high-end products represented by CAD/CAM, Labu, ironing and so on were gradually showing a hot trend.

In 2007, China's sewing machinery industry earned foreign exchange earnings of 1 billion 480 million US dollars, equivalent to 10 billion 656 million yuan, an increase of 9.6% over the previous year, accounting for 26% of the total sales value, and 30 billion 345 million yuan of domestic sales, an increase of 18.8% over the previous year, accounting for 74% of the total sales value, and the growth rate of domestic sewing machinery industry was obviously faster than that of export sales.

The domestic shift of market focus has led to the strategy of "localization" in the domestic market.

In order to seize the domestic market, many enterprises, on the one hand, have worked hard to improve their internal strength and strengthen their independent innovation. On the other hand, they have actively worked with internationally renowned enterprises to introduce advanced international technology, and gradually pfer advanced technology to the mainland market. By introducing advanced foreign technologies, the localization of high-end products and the continuous improvement of technology development level of domestic enterprises have been promoted, which has laid the foundation for promoting industrial upgrading.

At the same time, through the strong cooperation of high-end brands, binding the industrial chain, giving full play to their respective professional advantages, making product chain complementarity and building famous brands, we can achieve common development.

The implementation of this series of measures has increased the degree of self-sufficiency of domestic demand, and the import of sewing machinery has continued to decline.

Except for spare parts, the import volume of industrial machines, household machines and embroidery machines decreased by two digits compared with that of last year, and the decline of home appliance imports was more obvious, reaching more than 70%.

Exports focus on key markets

In terms of export area, China exported products to Asia for 862 million 80 thousand US dollars in 2007, an increase of 10.41% over the previous year, 226 million 650 thousand US dollars in exports, an increase of 21.16% over the previous year, 167 million 520 thousand US dollars in South America, 14.09% increase over the previous year, 137 million 620 thousand US dollars in North America, 9.94% decrease over the previous year, 74 million 710 thousand US dollars in exports, a 4.21% increase over the previous year, and a 11 million 950 thousand increase in exports to Oceania, an increase over last year.

It can be seen that the Asian market is still the main export target of the industry, but the development trend of the European market can not be ignored, especially for the export of its multi-function domestic machine, which accounts for more than half of the market's export volume.

As far as exporting countries are concerned, India is still the largest export market for sewing machinery in China, and the total value of export to India is 180 million US dollars.

Vietnam, Russia, Turkey, Indonesia and other countries have become the fastest growing export markets, of which 40 million US dollars are exported to Vietnam, 30 million US dollars from Russia, 50 million US dollars from Turkey, and 60 million US dollars from Indonesia, up 66.41%, 58.50%, 53.38% and 25.59% respectively over the previous year.

Leading enterprises lead the industry

In 2007, there were 391 enterprises with an industry output value of more than 5 million yuan, an increase of 7.7% over the previous year's 363, and a total of 51 Enterprises with an output value of more than 100 million yuan, an increase of 8.5% over the previous year's 47, and a total of 22 billion 700 million yuan of industrial gross output, accounting for 81.7% of the total output value of Enterprises above designated size.

The average output growth of key enterprises such as standard, leap, Shang Gong, ZOJE, jewel, Jack and Tongyu reached an average growth rate of 15%, which surpassed the average level of 13.8% of the industry. The development of medium-sized enterprises such as Hui Bao, MAQI, Shun Fa, Heng Qiang and Yuan Cheng became more rapid, with an average growth rate of 30%.

The core competitiveness and development potential of large and medium scale backbone enterprises have been enhanced, and the overall strength of the industry has been gradually enhanced, which has led the healthy development of the whole industry.

Private economy plays the leading role

In 2007, there were 271 privately held enterprises in 391 industries above Designated Size, with an output value of 14 billion 700 million yuan, representing an increase of 20.86% over the previous year, accounting for 53% of the total output value, 46 of the foreign holding enterprises, 8 billion 900 million of the total output value, 17.33% of the total output value, 32% of the total output value, 16 of the state holding enterprises, an increase of 16 over the previous year, and a total value of output.

Private holding enterprises have become the leading role of the industry economy because of their absolute output value.

The output value of private holding enterprises in 2007 is much higher than that of other types of holding enterprises, and the vitality of the economic entities can be reflected.

Notable adjustment of product structure

In 2007, the industry accelerated the pace of technological innovation and product research and development, and the major enterprises strengthened cooperation in production, teaching and research, accelerated the introduction and grafting of advanced technology, actively adjusted the product mix, expanded new development space, continuously improved the technological innovation capability of enterprises, and developed a number of competitive new products.

391 production enterprises above Designated Size have completed the output value of new products of 5 billion 600 million yuan, an increase of 19.42% over the previous year.

From the point of view of product structure, the proportion of mechatronics products with high technology content and high added value occupies an increasing proportion in the industry, and the quality of products is more stable and mature. The industry's main products begin to change from "cheap" to high quality, high-grade products.

More and more domestic sewing machine products have replaced imported products, and the results of product structure adjustment have been remarkable, speeding up the process of changing from quantity to quality.

From the point of view of output, industrial output increased by 7.8% in 2007 and output value increased by 13.8%. The output of mechatronics products and special machines in industrial machines has a clear growth trend and has become a bright spot for industry growth.

According to the statistics of the 98 sewing machine manufacturers, 800 thousand units producing live control devices were increased by 10.27% over the previous year, 5242 of the reinforcing machines increased by 22.25%, and 11468 of the keyhole machines increased by 18.12%.

At the same time, the market of multifunctional household appliances has expanded continuously, increasing by 9.4% over the previous year.

From the point of view of exports, the total export volume increased by 8.15% in 2007, the export volume decreased by 5.65%, the export value increment was reduced, the gold content of export products increased greatly, and the export of multi-function household machines, computer sewing machines and special machines increased rapidly.

Embroidery machine production entered the adjustment period, in 2007, embroidery machine ushered in its cold winter period, has been booming for nearly three years, the market suddenly cooled, demand fell sharply, embroidery machine production entered the adjustment period.

In 2007, the output of embroidery machines in China dropped from 100 thousand last year to 80 thousand, with a drop of 20%.

On the other hand, the embroidery machine has encountered an embarrassing situation of "quantity appreciation and drop". The export volume has increased by 75.27%, while the export volume has decreased by 0.55%, and the export profit has dropped sharply.

The demand has brought out a large number of small embroidery machine production enterprises. These small manufacturing enterprises are unable to guarantee the quality of the products and provide users with good after-sales service because of the new entry into the market, weak technical strength and limited funds. The sales mode has seriously affected the reputation of the domestic embroidery machine brands and disrupted the market order of the international embroidery machines. Three, a large part of the domestic embroidery machines provide export. In the foreign trade, many SMEs have not noticed the risks in foreign trade and have caused serious economic losses, especially for the export of embroidery machines in India. There are three reasons for this: first, the rapid growth of embroidery machines in the first three years has made the market gradually saturated and demand began to drop; two, because of the low threshold of sewing machinery industry, the huge market in previous years