Currently the sewing machine industry is experiencing an unprecedented fierce competition not only in China but also in other countries due to increasing prices of key inputs, increasing labour cost, RMB appreciation and economic downturn resulting from the US mortgage crisis.
The competition is also changing from labour cost advantage to that of product quality, product development and innovation, brand and management innovation. The garment industry, also affected by the downturn in leading economies worldwide, has seen a drastic reduction in demand for sewing technologies from middle and low-end garment exporters.
Leading Chinese sewing machine manufacturer, Zoje, too is currently facing a cut in profits and benefits, which have already had a big impact on its development plans, leading to the decision to introduce restructuring into its existing set-up. Earlier this year, the company shifted its focus towards product development and improvement, and in particular, optimizing the product structure with a focus on high quality and R&D. It is also focusing upon providing all-round service support and enhancing its brand reputation in order to receive the full realization of the products value to increase efficiency and to survive from risks and challenge market competition.
Another strategy has been to lay emphasis on its internal management and develop new business strategies. The first step in this direction has been the appointment of Zoje’s new Chairman, Li Ruiyuan and General Manager, Xu Renshun.
Post appointment, Chairman Li Ruiyuan, reflecting on the current economic situation of the industry and the issues affecting its development summarized, “After analyzing the developing trend of the sewing machine industry in respect to its competitive landscape, Zoje will explore a new way suitable for its own growth. The company must set a top-class international enterprise as its model so that it can establish itself further in the industry by offering a competitive edge in technology, cost, and process.”
Xu Renshun, GM, Zoje remarked, “Zoje will continue to work hard to improve its leading position in the industry and achieve the set production and management goals whatever difficulties there may be in the current market situation.”
