Just like the impact of the new crown pneumonia epidemic on the global economy, the overall economic downturn has caused the development of many industries to fall into anxiety. However, the epidemic can also promote the survival of the fittest in the industry. Industry leaders continue to rise, while small businesses are lost in the long river of history. Just like the industrial sewing machine industry we are going to talk about today.
The sewing equipment industry is a professional equipment manufacturing industry that mainly produces sewing machines, supplemented by cutting, ironing and gluing machines. According to the sewing process, sewing equipment mainly includes three categories: pre-sewing equipment, sewing equipment and post-sewing equipment.
The global output value of sewing equipment is about 40-50 billion yuan, of which sewing (industrial sewing machines) accounts for about 70%, and the penetration rate of sewing equipment is close to 100%.
At present, the sewing machinery industry has formed an industrial competition dominated by Chinese and Japanese enterprises. Among them, Japan's heavy machinery and brother companies have a high market share. However, this situation is gradually being broken by Chinese companies.
Through continuous R&D investment and outreach acquisitions, the products of Chinese companies are penetrating into mid-to-high-end products, gradually eroding the market share of traditional sewing machinery powerhouses.
The output of China's industrial sewing machines has an obvious weak cycle effect, generally 3-5 years. In 2011, China's output reached tens of millions, and then the overall trend declined.
In 2016, it stabilized and rebounded. After peaking in 2018, production declined again in 2019. Overall, the peak annual output of the industry is 9-10 million units, and the trough annual output is 5-6 million units.
With the intensification of competition in the industry, the weakness of the macro economy, the transfer of production capacity of garment enterprises to Southeast Asia, and the impact of the new crown pneumonia epidemic in 2020, the overall life of the industrial sewing machine industry in the first half of this year is not easy. At this time, large companies with strong profitability will show their advantages and take the opportunity to continue to expand, while companies with weak profitability will face greater pressure to survive. It is expected that the industry concentration will continue to increase.
In addition, because the labor cost is much higher than that of sewing machines, garment manufacturers are more inclined to use industrial sewing machines, and the unit price of sewing machines cannot reach the category of large fixed assets. Therefore, when the industry is underestimated, they will be scrapped directly. When the industry peaks, manufacturers will directly purchase new equipment. .
So there is enough flexibility for the sewing machine manufacturing leader.
Although the current research information shows that the overall demand for industrial sewing machines is still at the bottom, the domestic market has shown signs of recovery, and overseas demand is related to the progress of the epidemic, which is difficult to judge. But in the long run, according to cyclical laws, the industry is expected to recover.