There is a saying that to do a good job, an artisan needs the best tools. Sewing machinery is an important link in the apparel industry to enhance brand value and quality, which is also an important support for China's textile and apparel industry to move from "Made in China" to "Created in China". Therefore, the use of equipment to improve the contribution rate of science and technology and brand contribution of the apparel industry has become an opportunity and challenge for sewing machinery companies.
Sewing Machinery Industry Chain
The upstream of the sewing machinery industry is mainly core component suppliers and raw material suppliers such as pig iron. The main components include motors, electronic controls, bearings, rotary hooks, bevel gears, thread take-up levers, and needles;
The middle reaches are dedicated and household sewing machinery; the transfer of the garment industry drives the demand for equipment, in which South Asia and Southeast Asia are the main exporters. With the advantages of lower costs and tariffs, the global apparel industry is shifting to South Asia and Southeast Asia. A large-scale investment in new factories in these areas will generate a great amount of equipment purchase demand, driving the export growth of sewing machinery.
It Is Expected That the Sewing Machine Industry Will Be Led by Chinese Companies
At present, South Asia, Southeast Asia, Africa, and other regions are gradually becoming the production and marketing centers of the new global apparel industry by their advantages such as lower labor and other production factor costs and differential tariffs of importing countries. However, as people's requirements for the consumer industry continue to rise, companies no longer use cheap costs as a killer to compete for market share. Improving production technology and product quality are the core driving forces for the rapid development of enterprises.
After the garment manufacturing center was transferred to China in the 1980s, China has occupied the leading position in international sewing machinery. At present, more than 75% of the global production of the sewing machine is located in China. Over the past 22 years, China's export of sewing machinery and equipment has grown at a compound growth rate of 11%. Since the clothing industry is a consumer industry, the market demand is relatively stable, and the life cycle of sewing equipment is generally about 4-5 years. The starting point of this round of recovery cycle is 2017, and 2018-2020 is still in the business cycle. Although the industry growth rate may slow down in 2019, in the long run, the competitiveness in the international market will surely be further enhanced due to the expansion of domestic sewing equipment brands and the improvement of product technical competitiveness.
From a long-term perspective, we can analyze the development of domestic textile equipment. After years of development, domestic textile equipment companies have completed the preliminary equipment procurement, and achieved low-cost and high-performance product effects through imitation and innovation, and finally competed with imported products to occupy more domestic markets. On the basis of completing the accumulation of technology and capital, domestic companies increase investment in research and development of production equipment and strengthen product innovation to obtain technological dividends. China not only has a huge market consumption but also has a complete industrial manufacturing system. Under the background of the era of large international cycles and small domestic cycles, it supports the steady development of the domestic sewing machine industry. At this stage, China is undergoing a transition from a manufacturing power to a manufacturing power. The production equipment that composes the industry will also undergo a profound transformation.
Downstream Market: Demand Release in Short Term and Industry Recovery in Long Term
The sewing machine industry in China is cyclical, which has continued to build a bottom from 2018 to 2020. According to relevant statistics, the output of industrial sewing machines in China in 2019 reached 6.97 million units, a year-on-year decrease of 17.02%. The main business income of 238 enterprises above designated size reached 27.64 billion yuan, a year-on-year decrease of 11.80%. The total profit was 1.546 billion yuan, a year-on-year decrease. A decrease of 29.35%. Since the industry's growth rate declined in the second half of 2018, the industry has undergone about two years of adjustment, and we believe that a new industry upward cycle is expected to come soon.
In the short term, as domestic consumption is driven by multiple festivals, the demand of the textile and apparel industry is gradually released. The apparel industry is the most important downstream market, with strong growth in the short term, providing vitality for the sewing machine industry. Affected by the epidemic in the first half of the year, market consumption power declined significantly. According to data from the National Bureau of Statistics, the national total retail sales of textiles and apparel from January to August this year was nearly 700 billion yuan, a year-on-year decrease of 15%. However, starting in August, it turned positive for the first time. In August, the total retail sales of textiles and apparel nationwide reached 96.7 billion yuan, an increase of 4.2% year-on-year, indicating that the domestic textile and apparel industry is showing a trend of recovery.
Besides, recently driven by the domestic Double Eleven shopping festival, Thanksgiving Day, and Christmas abroad, the domestic textile and apparel industry has shown a clear recovery trend, as Southeast Asia the epidemic is in a serious stage of the epidemic, in which China has obtained more purchase orders under the conditions of normalizing epidemic prevention and control.
The market is rapidly concentrating on the leading players, in which Jack Sewing Machine is leading the way. Calculated on the basis of the main operating income of one hundred backbone complete machine manufacturers in the sewing equipment industry, the market share reached 20.25% in the first half of 2018, an increase of 5.46pct compared to 2017, and it has become the absolute leader in China. The main reason for the increase in market share is that Jack Sewing Machine shares bucked the trend to expand production capacity and successfully seized the industry's recovery opportunities while some companies in the industry have transformed since 2016 the industry's prosperity in 2014 and 2015 was low. In the context of a tight component supply chain, other companies have been slow to recover their production capacity, but Jack Sewing Machine has mastered the core component supply channels to increase market share by improving product quality and reputation, strengthening service system cultivation, and vigorously expanding overseas markets.
Textile Machine
https://www.globalmarketmonitor.com/reports/596073-textile-machine-market-report.html
Technical Textile
https://www.globalmarketmonitor.com/reports/595327-technical-textile-market-report.html
Custom Reporting
https://www.globalmarketmonitor.com/request.php?type=9&rid=0
We provide more professional and intelligent market reports to complement your business decisions.
Chinese
