In recent years, the textile machinery markets in India, Indonesia, Vietnam, Bangladesh and Pakistan have been in constant change. The rapid development of the textile and garment industries in these countries has brought about strong demand for equipment. In particular, some countries with weak industrial bases regard imported equipment as an important means to improve their country’s industrialization. Their textile and apparel industry is undergoing transformation and upgrading, and product types are also constantly changing. In addition, many factors such as adjustments to local economic policies, the rapid development of local textile machinery companies, and overseas textile machinery companies setting up factories locally are affecting textile companies. The pace of exploring the Asian market.
Detailed analysis of specific national conditions
Data statistics are guaranteed
Since India launched a policy to support the upgrading of textile equipment in 2005, a large number of spinning projects have been launched. In the past two years, the production capacity of India’s local textile machinery companies has increased, and the technical level of the spinning equipment produced has also been continuously improved, making up for some shortcomings of the original spinning equipment. In 2013, India’s total textile machinery imports from China alone reached US$459 million. Among them, the total import of knitting machinery was US$171 million, a year-on-year increase of 58.97%. The import value of embroidery machines was US$123 million, and the import value of other knitting machinery was US$48.2414 million, a year-on-year increase of 30.18%.
As the largest economy in ASEAN, Indonesia’s textile, clothing, and footwear and hat industries are important industries, with its output value, export volume, and employment scale all leading the way. At present, Indonesia’s industrial supply chain is quite complete, including chemical fiber, spinning, weaving, dyeing and finishing. It is one of the world’s top ten textile and apparel producers and exporters. In 2013, Indonesia imported Chinese textile machinery totaling US$231 million. Led by spinning machinery, the import value was US$68.9961 million, a year-on-year increase of 41.75%. The import value of ring spinning machines was US$28.5679 million, a year-on-year increase of 46.03%.
Due to the rapid development of Vietnam’s manufacturing industry and the lower tariffs it imposes on imported sewing equipment than other Southeast Asian countries, many foreign companies have opened factories. Currently, Vietnam’s sewing machinery market has huge potential. In 2013, Vietnam’s total imports of textile machinery from China alone reached US$200 million, a growth rate of 91.47% compared with the past, led by spinning machinery, with an import volume of US$101 million, a year-on-year increase of 338.76%. Among them, the import value of ring spinning machines was US$32.9562 million, a year-on-year increase of 324.70%.
In recent years, Bangladesh’s textile industry has developed rapidly thanks to cost advantages such as cheap labor and raw materials. Textile enterprises including spinning mills, weaving factories, knitting factories, printing and dyeing factories, etc. are blooming everywhere. Coupled with its preferential trade policies, last year, Bangladesh imported Chinese textile machinery totaling US$163 million, a year-on-year decrease of 11.27%.
With the development of the textile industry, Pakistan’s requirements for equipment reliability are gradually increasing. At the same time, European and Japanese textile machinery companies have moved their production plants to India and China. The reduction in production costs has also led to a corresponding reduction in equipment prices. About 10%. In this way, the high R&D costs are in contrast with the slightly lower sales price, and the cost-effectiveness of the equipment is highlighted, which also prompts companies exporting to Pakistan to upgrade their equipment technology. In 2013, Pakistan’s enthusiasm for importing Chinese equipment was not as high as it was 10 years ago. The total import volume was only US$133 million. The largest imports were embroidery machines and cotton spinning main engines.
Textile enterprises should pay attention to their needs
High-tech equipment is popular
Relevant experts predict that by 2015, Asia will become one of the fastest growing markets for textile companies in the world. According to product classification, textile parts and accessories are the largest market; in terms of growth potential, woven machines and knitting machines will grow relatively quickly. As far as the entire textile machinery industry is concerned, the future prospects are very broad, and it is imperative to open up new development space. Therefore, understanding the latest needs of textile companies in Asian countries and regions is the biggest issue facing each export company.
In recent years, many small textile companies similar to China’s “family workshops” have appeared in India. These companies are small in scale and have low investment. They generally choose knitting and weaving equipment, and then directly buy yarn for processing and production. The equipment imported from India is mainly knitting equipment and weaving equipment, followed by non-woven equipment, chemical fiber equipment, printing and dyeing equipment, etc.
Compared with India’s family workshops, Indonesia is currently able to manufacture simple textile machinery on its own, but most of it still comes from imports. Moreover, Indonesian textile companies generally face the problem of aging equipment, which makes it difficult to meet the needs of developing new markets. Many companies also hope to improve production efficiency by updating existing obsolete equipment. This is a great opportunity for international textile machinery production and sales companies. A development opportunity.
Industry insiders revealed that with the vigorous development of the textile and garment industry, the Vietnamese government plans to establish 11 textile and garment industrial parks. Due to Vietnam’s outdated production equipment, backward technology, lack of funds, and large market gaps, Vietnam’s textile and garment industry will continue to replace textile machines, knitting machines, washing and dyeing machines, sewing machines and other equipment. Assuming that a textile company’s production line requires more than 20 different types of machinery, Vietnam’s textile machinery market space is huge.
In recent years, with many textile companies starting work abroad,Factories, equipment production costs are reduced, and the requirements for equipment stability and reliability are gradually increasing. For example, in Bangladesh, more than 60% of textile enterprises are invested and established by enterprises from mainland China, Hong Kong, Taiwan, South Korea, Belgium, Italy and other countries. Most of their equipment, accessories, equipment, etc. are imported from China, especially those with traditional advantages. spinning machine. However, when importing other textile equipment such as blowing and carding machines, combing machines, draw frames, roving frames, winders, and some chemical fiber, printing and dyeing equipment, they have very high requirements for product quality and reliability.
In terms of high requirements for equipment, Pakistan, like Bangladesh, has seen a corresponding reduction in costs and sales prices by about 10% as European and Japanese textile machinery companies moved their production plants to India and China. Considering the reliability of the equipment, coupled with the appreciation of the RMB, the continuous improvement of the performance of European equipment, and the increase in enterprise labor and electricity costs, the desire of Pakistani users to purchase domestic equipment has gradually weakened. At present, when it comes to importing Chinese equipment, Pakistan generally only considers spinning machines, and focuses on products of big brands.
Market expansion is difficult
Experts are here to help
Although there is still room for development in the Asian market, especially in Southeast Asian countries and regions, it is not easy for export companies to expand into the Asian market. Therefore, it is particularly necessary to understand the difficulty of developing the Asian market and listen to the advice of experts.
For example, Indian textile companies purchase knitting and weaving equipment from scattered customers and face capital chain problems. The Indian market is relatively closed, and the efforts to attract foreign investment are not enough. Some smaller textile companies do not have assets that can be mortgaged or guaranteed, and it is difficult to obtain local bank loans. This requires export textile machinery companies to provide more flexible payment methods.
At present, compared with other Southeast Asian countries, Indonesia’s investment preferential policies have relatively stringent conditions and are difficult to implement. At the same time, due to the current sluggish performance of the world economy as a whole, the growth rate of new Indonesian textile projects is also slowing down, which has also brought certain troubles to export companies.
For companies that plan to explore the Bangladesh and Pakistan markets, they must improve their price advantage while ensuring quality, craftsmanship, and technology. Of course, if you want to ensure the competitive advantage of the equipment, you must maintain the stability and reliability of the equipment while being flexible in price and try to localize the after-sales service. In addition, it is not easy to open the market for new products, because Pakistani customers generally do not choose new brands. Therefore, in order to promote overseas markets, new products must meet customer requirements, and it is necessary to listen to more customer feedback.
In short, when expanding into the Asian market, it is necessary to conduct sufficient market research and study the local political, economic, and cultural environment, investment environment, foreign exchange policy, laws and regulations, market demand and potential, labor costs, purchasing power, and resource advantages. etc. to conduct comprehensive analysis and research, and conduct corresponding on-site inspections.
