Abstract: In 2023, the global economy will slow down, the consumption and import demand for clothing, shoes and hats in developed markets such as Europe and the United States will decline across the board, and the orders of major ASEAN and South Asian footwear and clothing producers such as Vietnam and Cambodia will decline sharply, and the demand for sewing equipment will shrink sharply, resulting in a high decline in the industry's export value, and the cumulative export value of sewing machinery products in mainland China will be 2.892 billion US dollars in 2023, a year-on-year decrease of 15.62%, falling back to the level of early 2021. Among them, the export volume of industrial sewing machines was 4.32 million units, with an export value of 1.3 billion US dollars, a year-on-year decrease of 13.75% and 25.73% respectively. The export volume of embroidery machines was 119,000 units, a year-on-year increase of 51.59%, and the export value was 493 million US dollars, a year-on-year decrease of 0.89%. In addition to household sewing machines, the export value of various industrial sewing machines and their parts in the industry as a whole showed a downward trend of different magnitudes.
1. Definitions and Classification
Sewing machinery refers to the machinery and equipment dedicated to the cutting and sewing of clothing, home textile decoration, shoes and hats, bags and other products. According to the sewing process, sewing equipment mainly includes three categories: pre-sewing equipment, sewing equipment and post-sewing equipment. The pre-sewing equipment mainly includes the processing equipment used for the pre-sewing process such as cutting and spreading the cloth, such as cutting and spreading the cloth; the sewing equipment mainly includes the processing equipment used for the sewing process such as the lockstitch sewing machine, the overlock sewing machine, the interlock sewing machine and the special machine; the post-sewing equipment mainly includes the ironing and packaging equipment used for the post-processing process of garment production such as ironing and packaging. According to the application field, sewing equipment mainly includes professional sewing machinery and equipment for the production and processing of clothing and other products, as well as multi-functional household sewing equipment to meet the needs of family sewing and manual creativity.
Second, the business model
1. Procurement mode
The main raw materials required for the production of sewing machinery are pig iron, diesel, outsourcing parts, motors, electronic controls and some casings. The supply of raw materials required by the company is sufficient, the channels are smooth, and a relatively stable supply network has been formed. Sewing machinery to suppliers to take regular or irregular visits, assessment and counseling, the implementation of assessment, rewards and punishments, exemption and other corresponding measures to protect the variety of raw materials.
2. Production mode
The sewing machinery company adopts the order + inventory production model, and the production and sales balance meeting is held by the marketing organization, production, procurement and other departments every month. The production department prepares the procurement and production plan according to the forecast of the marketing in the next 2-3 months, and then the production is scheduled weekly and monthly according to the changes in the market.
3. Sales model
At present, the domestic industrial sewing machine manufacturers mainly adopt the sales model of ordinary distribution and direct sales, and the large-scale pre-sewing equipment such as cutting beds and spreading machines mainly adopt the sales model of direct sales and distribution supplements.
Direct sales model. Sewing machinery manufacturing enterprises directly invest in the establishment of sales and service teams to carry out sales for users, and adopt a vertical and unified management mode. Through the direct sales model, enterprises can effectively control marketing channels and implement the development strategy of enterprises. However, under this model, enterprises need to invest a large amount of their own funds, and the upfront operating costs are high.
Distribution model. The distribution model refers to the sewing machinery manufacturing enterprises will sign distribution contracts or sales contracts with dealers for their own brand products, and the dealers will purchase from the manufacturing enterprises and sell them externally, and the dealers will bear their own business risks. The distribution model is conducive to the rapid expansion of market channels by sewing machinery manufacturing enterprises under the premise of less investment.
3. Industry policy
1. Competent authorities and regulatory system
The administrative departments of the sewing machinery industry include the Ministry of Industry and Information Technology, the Ministry of Commerce, the Development and Reform Commission, etc., the management institutions of the sewing machinery industry are the China Sewing Machinery Association and local associations, and the organization of the sewing machinery industry to formulate the standard system of sewing machinery products is the National Technical Committee for the Standardization of Sewing Machinery.
China's sewing machinery industry has a high degree of marketization, and the production and operation management of enterprises is completely based on marketization. The administrative departments and industry management agencies of the industry are limited to formulating industry standards, statistically collecting industry information, assisting relevant departments in formulating industrial policies, proposing industry development plans and guidelines and policies for industry development, and participating in the quality certification and quality supervision of important products in the industry.
2. Industry-related policies
The sewing machinery industry is an important fulcrum for the mainland to build a textile and garment power, and its development has been concerned and supported by the mainland government. The national policy actively supports the upgrading of sewing machinery technology in the mainland. The "Guiding Opinions on Promoting the High-quality Development of Light Industry" proposes to further implement digital transformation, and include "smart sewing factory technology, automated sewing unit technology, three-dimensional sewing technology, cloud platform and network remote operation and maintenance technology, intelligent sewing machine and numerical control system, etc." advanced sewing machinery technology into the digital development promotion project. "Implementation Plan for Quality Improvement and Upgrading of the Textile Industry (2023-2025)" Support industry service platforms such as the Garment Intelligent Manufacturing Alliance to integrate the upstream and downstream forces of the industrial chain and promote the R&D and application of common technologies for textile and garment intelligent manufacturing. The downstream garment industry promotes intelligent manufacturing, which provides a large incremental space for the development of intelligent, automated, energy-saving, and mechatronics sewing equipment.
Fourth, the development process of the industry
The development history of China's sewing machinery industry can be traced back to the 50s of the 20th century. In 1950, China's first simple foot-operated sewing machine came out, but there is still a big gap in technology compared with foreign products. In order to improve the technical level, China began to introduce sewing machinery technology and equipment from countries such as the Soviet Union and Eastern Europe. At this stage, China's sewing machinery industry is mainly dominated by state-owned enterprises, and the products mainly meet the needs of the domestic market. In the 80s and 90s of the 20th century, China's sewing machinery industry began to grow gradually, and a number of influential enterprises and brands appeared. At this stage, China's sewing machinery industry is gradually developing in the direction of diversification and serialization, and the products not only meet the needs of the domestic market, but also begin to be exported to overseas markets. Since the beginning of the 21st century, China's sewing machinery industry has begun to develop in the direction of high-end and intelligent. With the continuous improvement of the technical level, the quality and performance of China's sewing machinery products are gradually approaching or reaching the international advanced level. At this stage, China's sewing machinery industry began to focus on independent innovation and brand building, while actively expanding overseas markets. At present, the mainland has become the world's largest manufacturer and seller of sewing machinery.
Fifth, industry barriers
1. Barriers to management ability
The basic management of sewing machinery manufacturing enterprises involves a wide range of content and complex content, covering supply chain management, production management, human resource management, design and development management, marketing network management, market strategy management, after-sales service management and other links. Standardized and standardized internal management helps enterprises improve operational efficiency and enhance market competitiveness, which is crucial to the survival and development of enterprises.
Effective supply chain management can help enterprises and suppliers enhance cooperation and mutual trust, reduce procurement costs, and improve the quality of spare parts; efficient production management can help improve production efficiency, save energy consumption and raw material waste, and improve product quality; excellent human resource management can create a benign competitive atmosphere and mobilize the enthusiasm of employees; successful design and development management can strengthen the independent innovation ability of enterprises and enhance the added value of products; high-quality marketing network management can help enterprises roll out sales networks, increase sales, and strengthen the service capabilities of dealers; accurate market strategy management can help enterprises to quicklyAccurately find their own market position, efficiently expand and attract customer groups in line with their own product positioning, good service management can improve customer satisfaction, enhance brand reputation, and attract more users to buy products. The backbone enterprises of the sewing machinery industry in mainland China have strong comprehensive management capabilities, and have a more standardized and standard management system, which can help them control costs more effectively, increase production capacity, increase sales, and improve product added value. However, for new entrants in the industry, due to the wide range of management and complex content of sewing machinery enterprises, it often takes a long time to cultivate their management ability, so management ability is an important obstacle to enter the industry.
2. Technological barriers
The production process and technology of sewing machinery are more complex, and there are usually some differences in the process and technology of producing various products, so the skillful and exquisite production process helps to improve production efficiency, reduce production costs, and optimize product quality, which is an important core competitiveness of enterprises. Skilled production team can ensure the efficient operation of the assembly line, so that enterprises can obtain higher production capacity under the premise of investing the same production factor costs such as personnel, equipment, site, raw materials, energy, etc.; end users are increasingly favoring sewing equipment with high stability and durability, only high-quality products can ensure the production efficiency of end users, and good product quality depends on exquisite manufacturing technology. However, skilled and exquisite technology needs to be formed through long-term accumulation and exploration and experimentation, and new entrants in the industry often lack skilled and exquisite production teams. Therefore, the production process is an important challenge for new entrants in the industry.
3. Design and R&D barriers
Design and development capabilities are one of the important core competitiveness of the sewing machinery industry, enterprises with strong research and development strength can quickly respond to the development trend of user industry needs, realize the automation, intelligence and energy saving of sewing equipment, in order to enhance the added value of products, enhance the competitiveness of enterprises, and take the road of innovation and development has become the consensus of the whole industry. In the short term, increasing investment in design and R&D will help enterprises cultivate technical R&D teams, grasp the latest trends in industry technology, and have the ability to produce products that meet the latest needs of the textile and garment industry. Good design and development capabilities are also conducive to independent innovation, according to the user's feedback and the development trend of the downstream industry to carry out technical research, promote the upgrading of sewing equipment, enhance the added value of products, jump out of the quagmire of low-price competition; However, there are many varieties of sewing machinery and equipment, involving machinery, motor and electronic control and other related technologies are very complex, in order to have a strong design and development capabilities need to be long-term in the R & D team, scientific research equipment and other aspects of a huge capital investment, so the design and development ability is another threshold faced by new enterprises in the industry.
4. Marketing channel barriers
The sewing machinery industry in mainland China can be described as large but not strong, with a wide range of production and sales, low value-added sewing machinery products, the main market is oriented to the more scattered small and medium-sized textile and garment enterprises, marketing drive is an important feature of the whole industry. Therefore, successful channel development and effective channel management is very critical to the enterprise, good channel development ability can help enterprises expand the dealer network, increase the number of user groups and increase product sales; effective channel management helps enterprises to establish cooperation and mutual trust with dealers, enhance the comprehensive competitiveness of dealers, make their marketing network larger, and further expand the sales scale. However, the cultivation of strong channel development and management capabilities not only depends on long-term and large-scale investment in all aspects, but also requires the operators themselves to unremittingly explore and accumulate for a long time, so it is difficult for new entrants in the industry who are relatively lacking in all aspects of capital, manpower, material resources, management experience and other aspects to roll out marketing channels in a short period of time, and the expansion and management ability of marketing channels is the key barrier to enter the industry.
5. Service capacity barriers
To increase customer satisfaction, enhance brand reputation, and enhance enterprise competitiveness, enterprises need to establish an efficient service system, so as to ensure that customers can provide stable pre-sale, in-sale and after-sales service. An efficient service system depends on an excellent team of technicians, a fast distribution system, a scientific management process, long-term customer education and a large number of user information feedback. Fast pre-sales training, in-sale guidance and after-sales service can help users prevent and quickly solve various faults, and effectively avoid delaying users' production. Long-term service training is conducive to enhance the professional service ability of the dealer team, improve the service level of dealers, and greatly expand the service network under the premise of effective cost control; a large number of user feedback collection and sorting can enable enterprises to accurately grasp the needs of users in the first time, understand the shortcomings of product quality and design, improve in time, and enhance the market competitiveness of products. However, the establishment of an efficient service system requires long-term and large-scale investment, and it is difficult for new entrants in the industry to establish a service system in the short term due to the relative lack of manpower and material resources and lack of industry experience. Therefore, service capability is another barrier to entry for the industry.
6. Brand barriers
At present, the overall competitiveness of the mainland industrial sewing machine brand is relatively weak, and the small and medium-sized enterprises in the industry generally adopt the mode of imitation to follow the input and processing for production and sales, resulting in the homogeneous competition of the product is more obvious, the added value of the product is difficult to improve, and there is basically no brand concept at all; There is still a certain gap with world-class brands in terms of word-of-mouth (durability), and it is difficult to open up the mid-to-high-end market with high added value of products. However, the products of new entrants in the industry have almost no brand at all, and it is very difficult to build brand competitiveness in the short term, so the brand is another barrier to enter the industry.
Sixth, the industrial chain
1. Analysis of the industry chain
The upstream of the sewing machinery industry is mainly suppliers of core components such as motors, electronic controls, and rotary hooks, as well as raw material suppliers such as pig iron and copper. The downstream mainly sells products to downstream users through distribution, direct sales and other channels. Sewing machinery and equipment has a wide range of applications, in addition to the clothing industry, it is also widely used in shoes and hats, bags, leather, toys, composite materials, household goods, outdoor products and other fields that need to be cut, sewn and decorated. The sewing machinery industry chain is shown in the following figure:
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