From the beginning of this year, Chinese sewing machine industry is struggling to cope with domestic as well as international trade pressures.
History reveals that, when China had started aggressive reformation back in early 90s, many international sewing machine enterprises like Juki Corporation invested large amounts in the country.
In this period, China not only offered low production cost but Government had issued many favourable policies including zero rate on export items. Exchange rate of US Dollar to RMB was adjusted to 1:8.27.
Thus, 1994-2004 period is remembered as the 'Golden Age' for Chinese sewing machines industry.
However, 2008 is already showing initial signs of dark era for the industry. Analysts say that if the situation persists, many sewing machine companies in China would close down within 3 years.
For instance, in the first season of this year, the operating income of Zoje Group decreased by over 30 percent than the same period of last year. Export value of Feiyue Group in the first 4 months was nearly US $18.48 million, recording year-on-year plunge of 44 percent.
Experts stress that, the industry had to take major steps and find out new ways to become big and strong as soon as possible.
Fibre2fashion News Desk - China
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