On April 26, Gu Ping, vice president of the China Textile Machinery Equipment Industry Association, returned from the just-concluded 12th Indonesia International Textile and Garment Machinery Exhibition. The deepest impression on him from this exhibition was the high growth in demand for textile machinery products in the Indonesian market. He pointed out: “After 2010, Indonesia’s economy has continued to grow, and the Indonesian government has introduced policies to encourage the development of the textile and garment industry. As a result, the country’s demand for textile machinery has grown steadily. In the past, my country’s largest export to Indonesia was spinning equipment. Now Sales of weaving equipment are also increasing. However, what needs to be noted is that the Indonesian market is paying increasing attention to high-end machinery and equipment.”
Market demand needs to be tapped
This year, more than 300 Chinese textile machinery companies are competing for the Indonesia International Textile and Garment Machinery Exhibition, with an exhibition area of 4,000 square meters, and Chinese exhibitors account for 40% of all exhibitors. This data reveals two pieces of information. First, Indonesia is an important market for China’s textile machinery exports; second, the local market competition is very fierce.
In 2013, China exported US$230 million worth of textile machinery equipment to Indonesia, a year-on-year increase of 9.96%, accounting for 1.19% of China’s total textile machinery exports. Among them, the export volume of printing and dyeing finishing equipment and spinning equipment is relatively large, especially the export of spinning machines contributes the most. In the same year, Indonesia’s imported textile machinery equipment accounted for 38% from Europe, 28% from China, 24% from Japan, 3% from India and 7% from other countries. Europe still dominates the Indonesian market, while China is competing in the market as a challenger. Gu Ping said: “China’s spinning equipment is the most competitive and has the largest market share, reaching almost 31%. As for other weaving, dyeing and finishing equipment, taking winding machines as an example, European products are Accounting for a larger share, this is also an area where we need to continue to improve.”
Among Southeast Asian countries, the market size of Indonesia’s textile industry is indeed quite large. The country currently has about 7 million spindles and 4,000 large and medium-sized textile and garment enterprises of various types. In the future, the country will add more than 300 textile enterprises. It can be seen that the Indonesian market has full potential. Gu Ping said: “Indonesia’s labor force is relatively cheap. Although the degree of industrialization is not high, it has developed rapidly in recent years. In the field of exports, the country has always been in line with the world. With the development of ASEAN integration and other agreements, the country’s export advantages It is very obvious. However, due to lack of funds, the textile machinery equipment used by Indonesian textile enterprises is generally relatively old, and most of them have a service life of more than 10 years. However, the annual import volume of textile machinery is about 700 million US dollars, which is not enough to pay for all products. Renewal. This shows that the country’s market demand has yet to be tapped.”
From a business perspective, Indonesian companies are very eager to expand the textile industry. During the exhibition, Gu Ping visited a spinning factory near Jakarta. The factory has 3 workshops and a capacity of 180,000 spindles. The equipment used is better, both in terms of configuration and automation level. Relevant departments of the Indonesian textile industry stated that using high-end textile machinery and equipment to produce better products is the direction of the future development of the Indonesian textile industry. Therefore, the country now has a greater demand for high-end textile machinery products and is gradually improving the textile industry chain.
Made in China urgently needs to be promoted
People always ask what are the competitive advantages of Chinese products? Gu Ping replied: “Our products have a very high cost performance, the quality is close to the international level, but the price is lower than European products. For manufacturing companies, purchasing the best and most expensive products is not necessarily a good choice. How to choose the best products?” The most important thing is to purchase products at the most suitable price, which means that enterprises need to achieve the most reasonable proportion of input and output. It can be said that Chinese products can meet the needs of enterprises.”
He also said that although the overall development of China’s textile machinery industry has made great progress, there are still many areas that need to be improved according to market demand. The first issue is how to increase brand awareness and extend to high-end product areas. In Indonesia, some young heads of textile companies, especially those who have studied abroad, prefer European products. In fact, many Chinese products are not inferior to European equipment, so how to promote Chinese products to these young leaders and establish the name of Made in China? Gu Ping suggested that small and medium-sized enterprises should “go global as a team.” “At present, 90% of China’s textile machinery companies are private enterprises. They have strong market concepts and are very energetic in expanding overseas markets. However, relying on companies to work alone is weak. If the service cannot keep up, it will also affect Chinese companies. The overall image. Relying on the strength of groups is quite different. For example, this year the Jiangsu Textile Machinery Equipment Industry Association organized 34 companies to participate in the Indonesian exhibition. This project was included in the ‘2014 Jiangsu Province Trade Promotion Plan’ by the Jiangsu Provincial Government. According to the Under the plan, participating companies will receive 80% of the special business fund subsidies for booth fees and exhibit transportation fees. Group participation not only receives subsidies from national policies, but can also make better use of the export credit business, which can be said to be a good use of the power of the country. . In addition, providing supporting services based on the industrial chain will greatly enhance the international image of Chinese companies.” Gu Ping said.
This year, Jiangsu Textile Industry (Group) Mechanical and Electrical Import and Export Co., Ltd., Wuxi Siplan Air Jet Loom Manufacturing Co., Ltd., Changzhou Hongda Electric Co., Ltd.� The China-Suzhou Textile Alliance Indonesia Service Center jointly established by five companies, Wuxi Xinlian Printing and Dyeing Mechanical and Electrical Co., Ltd. and Boluwei Machinery Jiangsu Co., Ltd., has attracted the attention of local Indonesian textile companies. Gu Ping believes that this approach will help overseas users have a clear understanding of the overall level of Chinese products, and immediate service will also boost local sales of textile machinery products. In addition, the China Textile Machinery and Equipment Industry Association will use exhibitions and other platforms to promote more outstanding textile machinery companies and high-quality products to overseas markets.
