Embroidery Machines Can'T Work At Cost.

It is understood that the world's 80%~90% embroidery machine from China, China's annual exports

In fact, the export volume of domestic embroidery machines has begun to pick up since August and September last year. This trend has continued to the first half of this year. Most business leaders think that the recovery of the embroidery machine's export volume is mainly due to India.

Low volume can not afford to hurt.

Judging from the current situation, the domestic embroidery machine export market is still good.

Mr. Lu, director of Zhejiang Le Jia electrical and Mechanical Co., Ltd. told reporters that the export volume of Lok Jia company in the first 4 months of this year has reached 1~8 months last year.

Despite the rapid growth of exports, the profits of embroidery machine enterprises have become thinner and thinner under the attack of multiple factors such as the general price increase of raw materials and components, the rising cost of labor, the appreciation of the renminbi, and the depression of the world economy.

Reporters have learned that in recent years, the overall price of embroidery machines has been declining.

Last year, a number of leading enterprises in the industry negotiated together and increased the price of equipment by 5%, but still couldn't keep up with the pace of rising raw materials and labor costs in the near future.

What is even more worrying is that some small businesses on the market are now refurbishing some of the old machines for recycling. Such machines only cost more than 2000 yuan per unit, less than 1/5 of new equipment prices, which seriously disrupts the normal order of development of the embroidery machine market.

Compared with Japan, Germany and South Korea, the cost advantage of Chinese embroidery machine is very obvious, which is the primary reason for India enterprises to choose Chinese products.

However, with the influx of Chinese equipment into the India market in recent years, domestic embroidery machines have been competing to reduce prices and seize the market.

It is understood that in 2005 alone, 100 thousand embroidery machines were exported from China to India and other Southeast Asian and Southeast Asian countries. In the 2007 and 2008, the export volume experienced a sharp decline and dropped to more than 40 thousand units a year.

Export momentum is slowing down.

Speaking of embroidery machines, people can not help but think of Zhuji, Zhejiang.

At present, Zhuji, Zhejiang has more than 300 computer embroidery machines, and has formed a complete industrial chain integrating rack production, spare parts production, whole machine production and after-sales service.

Last year, Zhuji computer embroidery machine industry realized output value of 3 billion 150 million yuan, embroidery machine output reached 39 thousand units, accounting for about 60% of the national output.

Although the Zhuji embroidery machine has been exported to more than 10 countries such as Southeast Asia and Africa, it still has the largest export volume in the India market.

In the past few years, the export volume of Zhuji's export embroidery machines accounted for more than 80% of the total export volume of the annual embroidery machine, even though it was slightly lower last year, reaching 70.6% in.

In recent years, the general market of India has been fluctuating, time lag and unpredictable.

For example, in the first half of 2009, the situation was good, and in November, there was a downward trend. This downturn continued until August and September last year.

In fact, compared with the momentum of supply shortage in March and April this year, the export momentum of Zhuji embroidery machine has slowed down.

Han Haiping, general manager of Xing Da Hao Technical Developing Company, said that as of mid May of this year, Xing Tai Hao, including Beijing head office, had sold about 20000 computer control systems to Zhuji embroidery machine enterprises, almost flat with last year's sales volume.

At present, this wave of market has lasted for half a year. According to this speed, the market of India's largest textile distributor - the market will soon become saturated. After the India market is saturated, no one will expect the embroidery machine market to follow.

Upgrading and pformation are not waiting.

Although China is the main production base of embroidery machines, it is undeniable that due to the lack of R & D strength of domestic equipment and weak innovation capability, it is still a strong weakness for domestic equipment.

Many executives expressed the willingness of enterprises to jointly establish R & D institutions and enhance their technological innovation capability.

However, raising the added value is easier said than done.

In the current situation of fierce competition, enterprises must increase the added value of products. On the one hand, they must write more articles at low cost. If the cost is too high, the equipment manufacturers will lose their advantages in price competition. On the other hand, improving the added value is a systematic process. Innovation must start from the processing of parts and components. Starting from a single link or an enterprise, it often fails to achieve the desired result.

Until today, the "shrinking" experience of the India market before and after 2007 is still a nightmare for many Chinese Enterprises: many domestic embroidery machine enterprises have encountered sudden weakness in the India market, customers refuse to pick up goods, and a large number of embroidery machines remain in the ports. Many domestic embroidery machinery manufacturing enterprises are forced to withdraw from the India market. Some enterprises are still reluctant to support by low prices, but few enterprises have achieved victory in this period.

These successful breakout experiences tell us that upgrading and pformation will not wait for us.

For example, Tianjin BAOYING Computer Machinery Co., Ltd. belongs to a more successful case at that time.

As early as 1998, Baoying company began to "test the water" in India market.

Unlike most of China's embroidery machines sold in India, the price of Fu Yi embroidery machine is higher, breaking the inertia thought of "Chinese goods are cheap goods" in India's eyes.

"Our main mechanical and electrical integration equipment, the key is that we can develop our own electric control system," said Mr. Fu, the regional manager of India.

And many colleagues want to purchase electronic control system from enterprises specializing in the production of computer control panels.

In this way, not only the added value of our products is improved, but also the after-sale maintenance is very convenient. Otherwise, the problem of electric control is going back to the original factory.

While many domestic embroidery machine enterprises still struggle to win foreign orders, some well-known foreign companies have stepped up their efforts to dig deeper into the Chinese market.

If domestic enterprises do not adjust their strategy in time, identify the trend of technological development, and steadily and steadily, they will easily lose themselves in the ups and downs of the market.