Industrial Sewing Machine demand is at the bottom, and the turning point is expected to come.
China is a big country in sewing machinery production. According to the industrial information network, by the end of 2014, China's sewing equipment has completed a total industrial product value of about 61.5 billion yuan in the whole year, producing 12.14 million sewing machines, accounting for more than 75% of the world's production, and is the world's largest producer of sewing machinery products. In recent years, a number of key enterprises in the industry have increased their investment in design, research and development, quality improvement and other aspects, and achieved remarkable results, which makes the gap between China and the sewing machinery power gradually narrowed, which has led to the transformation from a large sewing machinery production country to a powerful country.
China's industrial sewing machine has a cyclical, 18-20 years of continuous bottom building. According to statistics of China Sewing Machinery Association, the output of industrial sewing machines in China reached 6.97 million in 2019, a year-on-year decrease of 17.02%, and the main business income of 238 Enterprises above scale reached 27.64 billion yuan, down 11.80% year-on-year, and the total profit was 1.546 billion yuan, down 29.35% year on year. From the data from 2010, the production peak of 2011, 2013 and 2018 industries has been high. We estimate the industry cycle is about 4-5 years. Since the growth rate of the industry has declined in the second half of 2018, the industry has experienced adjustment for about 2 years. We believe that the new industry rise cycle is expected to come soon.
