Weakness Of Domestic Equipment And Depreciation Of Yen Ignited Nissan Air Jet Loom

Since October last year, with the devaluation of the yen, it used to cost only 260000 yuan to import a jet loom worth 300000 yuan from Japan. According to Xu Jianmin, head of sales department of Marubeni Company, the general agent of Tsudakoma in China, the prices of jet looms with different configurations are different, but on the whole, the average price of Tsudakoma's jet looms in the Chinese market dropped by nearly 20% due to the exchange rate alone. Don't even think about this in the usual sales negotiation. Generally, it will fluctuate by 1~2 percentage points at most.

A loom is 20% cheaper

Nissan orders increased by 30%

The huge price temptation has made our country spin The enterprise still took a long-term view, seized this time, and bought a large number of Nissan jet looms. According to customs statistics, from January to August this year, China imported 4933 jet looms, a year-on-year increase of 90.17%, 777 more than the annual import of last year.

Air jet looms have always been a kind of equipment with the largest number of textile machinery imports in China, and they are mainly from Japan's Toyota and Tsudakoma. In the past two years, due to the depression of the domestic textile market, the sales of Japanese looms in China have shown a downward trend, especially last year, with the devaluation of the euro, several Japanese projects have also turned to Europe.

While Japanese loom manufacturers were worried about the market this year, the depreciation of the yen became more obvious after March and April this year. In a few months, the price of a jet loom was nearly 20% lower than that of last year. At the same time, the orders of Japan's two major loom manufacturers rose rapidly.

"In fact, this year's cotton textile situation is the worst year in recent years. We originally estimated that textile enterprises would not buy weaving equipment on a large scale this year, but because of the exchange rate, the price was 20% cheaper. Some private enterprises in the south took advantage of the price to place orders for future consideration.". Xu Jianmin said that the price of each device dropped by nearly 20%, which was not even considered in Tsudakoma's usual sales negotiation. Generally, the price fluctuated by 1 to 2 percentage points at most.

Undoubtedly, the depreciation of the yen has not only benefited domestic user enterprises, but also boosted the sales of Nissan's jet looms.

According to the reporter, Tsudakoma sold 3000 jet looms in the first eight months of this year, while only 2000 were sold last year.

The sales of Toyota Automatic Loom Co., Ltd., another major loom manufacturer in Japan, are also very good this year. Toyota sells about 10000 looms in the global market every year, and China accounts for about 70% of its sales. During the sales statistics period from April 2012 to March 2013, Toyota sold about 6000 looms to China. According to Xu Yu, the representative office of Toyota Automatic Loom in Shanghai, orders this year increased by 30% year on year.

Domestic equipment market is weak

Enterprises complain about the depreciation of yen

Contrary to the booming sales of Nissan's air jet looms, the sales of domestic air jet looms this year are not satisfactory. It is understood that the orders of Toyota and Tsudakoma are scheduled to March and April next year, while the orders of domestic jet looms only last about two months. Some enterprises are even reducing production, and the orders of Xianyang Textile Machinery, the largest manufacturer of jet looms in China, are also much lower than last year.

Wuxi Sipulan Air Jet Loom Manufacturing Co., Ltd. has sold 600 air jet looms by the end of August, equivalent to the output of last year. Ding Chaoying, the general manager of the company, said in an interview that their sales would be better without the depreciation of the yen.

In the interview with domestic air jet loom manufacturers, most of them agreed with Ding Chaoying that the sales of domestic air jet looms were not smooth this year. In addition to the depressed market, the depreciation of the yen led to Nissan looms seizing the share of some domestic looms. Some users who originally planned to buy domestic air jet looms turned to Nissan air jet looms. Ding Chaoying said that their company is talking about an order that is swinging between Seplan and Toyota, and other companies have similar situations.

Whether the yen will continue to depreciate is a matter of great concern for domestic jet loom manufacturers. In their view, the devaluation of the yen is a great benefit to Japanese enterprises. Under the condition of constant prices, with the increase of output, some costs will be reduced, which will further improve the profits of Japanese enterprises; If the original profit is maintained, Nissan looms will further stimulate the order growth if the price is properly reduced. Before the devaluation of the yen, the price difference between domestic and Nissan's jet looms was 40%, but now it is only 30%. If the yen continues to depreciate, the price gap will be smaller, which will have a greater impact on domestic looms.

Price is not the leading reason

Product positioning determines everything

As for whether the depreciation of the yen will lead some enterprises to change from domestic equipment to Nissan equipment, Japanese companies and Chinese companies have completely different views. Xu Yu believes that textile enterprises generally choose domestic equipment or Nissan equipment because of the positioning of production products, and will not switch from domestic equipment to Japanese equipment just because the price is cheap. This phenomenon cannot be said to be absent, but it is very rare. Xu Jianmin also holds the same view as Xu Yu. He said that a domestic jet loom was 160000 yuan (including 17% tax), and even if the Nissan jet loom was reduced from 300000 yuan to 260000 yuan (17% tax must be paid when purchasing), there was still a gap of 100000 yuan between the two. He believes that the price gap is not the main reason for leading enterprises to choose equipment. In addition to product positioning, there are also enterprises' use habits. Most of Tsudakoma's customers this year came from old customers, even new customers, because their product positioning chose Nissan jet looms. Xu Yu said that in fact, the price gap between domestic and Nissan air jet looms reflects the comprehensive gap in technical performance, manufacturing quality and service level of equipment. This is also the main reason why China imports thousands of Japanese made air jet looms every year.

In this regard, domestic air jet loom manufacturers have also expressed their recognition. At the same time, it is also believed that the domestic air jet looms have made great progress in recent years. Not only are they catching up with Japanese equipment in technology, but the price gap is also narrowing, the output is gradually catching up and replacing some imports. Of course, to really replace imports, we need to continue to innovate and improve technology.

In fact, the change in the exchange rate led to a large rebound in Japanese loom orders, which was fundamentally due to market demand. In other words, there is a market. The key is whether your equipment can keep up with the needs of enterprises. It is believed that Nissan looms cannot eat all the markets due to the limited output. Domestic looms still have certain competitiveness in terms of cost performance. Under the current situation, domestic air jet loom manufacturers should not only consolidate the domestic market, but also pay attention to developing overseas markets. Only by walking on two legs can they go more steadily and further.