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Investigation on 诸暨 Computerized Embroidery Machine Industry

From:Date:2015/04/16 13:45:30

Zhejiang Zhuji is the largest industrial cluster of China computerized embroidery machine industry. In the past two years, China embroidery machine industry is further concentrated to Zhuji. The production and sales volumes of key enterprises like Shengming, Yuelong, Deyuan, Xinsheng, Lejia and Maya are growing rapidly.

 

Steady Production

As the leading manufacturing enterprise of electronic control system for computerized embroidery machine in China, Beijing Dahao Technology Corp., Ltd produces electronic control systems for tens of thousands sets of computerized embroidery machines annually in recent years; thereinto, more than 70% of products are supplied to Zhuji area. According to the key computerized embroidery machine manufacturers, including Yuelong and Xinsheng, their output are also doubled in recent years.

In recent years, in regions like Shantou and Xiashan, Guangdong, the water-soluble lace processing market is very hot, and the explosion of this market drives the growth in production and sales of computerized embroidery machines. The sharp rise of market demand puts forward higher requirements for the production efficiency of computerized embroidery machine and the quality of product. Benefiting from this, multi-start computerized embroidery machine has ushered in a real peak in market demand since 2013. It has also promoted the consecutive growth of embroidery machine industry since 2011.

Nonetheless, in the middle of 2014, insiders have already estimated that the computerized embroidery machine will not continue the hot situation in 2014. By June, 2014, the production and sales volumes of many enterprises are only equal to those of the same term in previous year. It is generally believed that the production and sales volumes in the second half of 2014 will be declined compared with previous years, and the industry will enter into a normal periodic "slack season". The data provided by China Sewing Machinery Association further verifies this guess. It is reported that in the first 9 months of 2014, the production volumes of main computerized embroidery machine manufacturers in China suffer a year-on-year decline of 8.55%.

At present, Zhejiang Yuelong Sewing Equipment Co., Ltd. is the largest computerized embroidery machine enterprise in Zhuji or even in China. Chen Tianlong, the Chairman, holds that Yuelong has enjoyed a favorable overall situation in the first half of 2014, of which, the first 4 months are focus on domestic market, while since May, the domestic market shrinks and is shifted to the export market.

Wang Haijiang, the Chairman of Zhejiang Xinsheng Sewing Equipment Co., Ltd., thinks that the decline of the embroidery machine output is related to the whole economic environment and the market situation; the insufficient consumption capacity of residents directly affects the apparel industry. In 2014, many small embroidery processing plants have no business basically.

According to Zhuji Maya Electric Appliance Machinery Co., Ltd., compared with the previous two years, the market in 2014 marks a significant difference; the output and sales volume of embroidery machines are expanded at one blow. For Maya, the amplification in 2014, compared with the previous year, is about 20%; the situation in the second half of 2014 is inferior to that in former years mainly due to the sharp decrease of order quantity in Guangdong region. In this region, the demand for computerized embroidery machines declines sharply in 2014, whereas the production and sale of computerized embroidery machines are mainly driven by such regional demand.

 

Product and Technology

Years ago, computerized embroidery machine made in China always impressed people with low end and cheapness. However, circumstances change with the passage of time, computerized embroidery machine made in China has obtained great progress in aspects like R&D, design and manufacturing. Take Zhuji region as an example, the past situation of focusing on medium-low end products has been improved.

The computerized embroidery machine of Zhuji is started from flat embroidery machine. Up to the present, the local computerized embroidery machines are diversified, the product series become more complete, the product quality becomes more stable, and the product R&D becomes more diligent.

"Whole series" becomes a highlighted synonym for Zhuji embroidery machine industry. It can be seen that not only flat embroidery, mixed embroidery, towel embroidery, paillette embroidery, ribbon embroidery, cap embroidery and quilting machines are available for computerized embroidery machines produced in Zhuji, but also multi-head machine, high speed machine and laser all-in-one machine hot in recent years are available. Nowadays, all types, from common machine to special machines, are available in Zhuji.

Local key embroidery machine enterprises will, almost every year, make certain adjustment to the product structure and gradually bring the product from simpleness to diversification. According to local enterprises, the product structure is diversified mainly to adapt to the market demand, namely, to determine the variety and output according to the market.

Wang says: "now workers in embroidery processing enterprises become fewer, but the requirements of market for embroidery products become higher." Therefore, computerized embroidery machine shall strive for "high automation degree and high efficiency". It is understood that Xinsheng can process 10-code multi-head machines (88-head and 114-head) at present and has been recognized by the market.

Abundant product variety also puts forward higher requirement for R&D, design and quality of product. Stability of mechatronic products is related to machinery and electronic control. Many aspects, like the whole design and assembly technology, shall be considered for machinery. Difficult technology breakthrough has been a common problem for the computerized embroidery machine manufacturers in China before. However, in recent years, this condition has got better.

Since 2010, Shengming has started to focus on high-end and strengthen the technology R&D strength. The annual investment in product development accounts more than 10% of the total output value of the company. Lejia lays stress on the quality control in parts purchasing and assembling process. In addition to necessary part inspection and process inspection, Maya Company has also realized standardized assembling.

Zhuji possesses abundant industrial chain resources of embroidery machine, ranging from rack production to accessory purchasing. Although the grade of locally produced embroidery machine accessories has moved up by a step, it fails to satisfy the gradually improved quality requirements of enterprises as a whole. Therefore, Zhuji complete machine manufacturers will purchase better components from Zhejiang and Jiangsu, and even adopt imported components for high-end types.

 

Market and Price

For a long time, computerized embroidery machines produced in Zhuji are based on India export market and limited by the development situation of Indian market. Now, Zhuji computerized embroidery machines have already got rid of restriction from single market, and are spreading their coverage in more markets. Meanwhile, computerized embroidery machine manufacturers in Zhuji are continuously improving their domestic market shares.

As for export sales, the largest export countries of Zhuji computerized embroidery machines at present are India and Pakistan. Moreover, such machines are also exported to Indonesia, Brazil, Egypt, Morocco, Thailand, Vietnam, Bengal, Turkey and Algeria. As for domestic sales, the Zhuji computerized embroidery machine markets are still concentrated on Jiangsu, Zhejiang and Guangdong; thereof, Shantou, Xiashan, Shaoxing and Xiaoshan regions are important markets.

In addition to the continuous adjustment of market coverage area, the export product structure of computerized embroidery machines is also adjusted. According to the Chairman Wang of Xinsheng, the products exported to India and Pakistan before are mostly low end types. However, the demands in above markets are also changed to focusing on product quality and production efficiency. The computerized embroidery machine imported is slowly changed from 10-head to 30-head, 40-head and even more, and the requirements of automatic trimming and improvement of rotation speed are already proposed. Some products shall be adjusted according to the client's requirements.

Despite the present fierce market competition in domestic and export sales of computerized embroidery machine, local manufacturers in Zhuji express that they will not last a long-term price war, nor will they reduce the product price arbitrarily. They believe that only good product design and quality can attract high-grade clients; as long as an enterprise has strength, scale and brand, it can attract agent for cooperation.

In addition, the Chairman Chen of Yuelong expresses that due to the type diversification, the export price of product is a little higher than that in single product structure period. Now, each computerized embroidery machine manufacturer will develop its characteristic product, and the product promoted by different manufacturer will be different.

 

(For more informations, please refer to the April 2015 of the CSM)