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Merge small sewing machine Cos for bigger profits - Expert
Jul '08
According to the statistics, in the first few months of this year, the total output value of Chinese sewing machines industry decreased 21.76 percent than the same period of last year. The profit stood at 500 million yuan, down 43.04 percent.

Total production marked 3.16 million sets of sewing machines, down 24.71 percent, and the sales quantity was 3.07 million sets of sewing machines, representing a fall of 27.4 percent.

The export value of the industry registered US $780 million, a plunge of 4.88 percent. Besides, China imported only $150 million worth of sewing machines, recording a drop of 22.89 percent.

Experts believe that the strained international trade has adversely affected the sewing machine industry, where the SMEs are facing the most problems.

Chairman of China Sewing Machinery Association (CSMA), Mr Tian Mingyu informed that the condition of the manufacturers was getting worse, especially due to lack of adequate funds. Nearly all small sewing machines enterprises were forced to close down.

Mr Mingyu suggested that a single big enterprise by merging and integrating several small companies must be formed. Then, this big enterprise will be strong and efficient enough to compete in international market.

Fibre2fashion News Desk - China

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