Source :   NewCloth Market

China is believed to be havingnearly 70% of world computer embroidery machine market.

Barudanof Japan developed the world's first multi-head, computerized embroidery machinein 1977. The computer embroidery industry of the world was guided by suchdevelopments taking place in Japan.Chinahas also acquired skills to develop high-speed embroidery machines during allthese years.

Accordingto the statistics, before 1997 there were only a very few factoriesspecializing in computer embroidery machine making with a total production ofno more than 2000 sets or so. After 1998, both the number of embroidery machinemanufacturers and their volume doubled. In 2004 the total number ofmanufacturing factories increased to more than 150, specialized parts supplierstotaled more than 2000 companies, yearly turnover more than 40,000 sets,domestic sales volume more than 30 billion Chinese yuan, export volume morethan USD 0.6 billion, provided job for more than 300,000 persons.

Internationallyfamous embroidery machine manufacturers include Japan'sTajima, Barudan, Brother, Happy, Toyota; Korea's SWF,Germanys ZSK; KSM (PFAFF); American Melco etc. Tajima & Barudan from Japan occupiedmore n 70% of the global market share before 1998. But with the growing Chieand Korean manufacturers, the global computer embroidery machine manufacturingsituation has changed dramatically.

Inthe year 2004, global supply of embroidery machines was more than 60,000 setsout of which middle to lower level machines occupied around 70% of the marketshare. These were produced -in China.Machines made in china gained more than 66% in global market. Korean SWF hastaken 1 /3rd of the High-end market that belonged to Japanand Germanyearlier.

Machinesmade in Chinahave entered the global competition gainfully with low cost advantage duringrecent years. The machines now enjoy a decent market share and are a big sourceof foreign exchange earnings, the product structure has been modified and China hassubstantially improved in quality, especially in the middle to high endsegment, which offers better prospects.

Thedemand pattern indicates that various models of lock-stitch embroidery machinesstill occupy around 90% of the total market share. Almost all low end(economical) no-trimming machines are manufactured in China. In theyear 2004 alone sales of such machines were of around 26000 sets, which was 40%of the total embroidery machine production. In the mean time, China has beenable to achieve 27% of the global market share in the middle-to-high levellock-stitch machinery sector.

Specialembroidery machines (For example, lock -stitch quilting machine, sequin,cording, taping, coiling machine, together with chain and chenille machine)were manufactured in very small number in China in the past due to hightechnology expertise required and also due to reasons of price and low marketdemand.

However,in recent years, these machines are produced in big volumes as a result ofwhich the prices have been brought down dramatically. Special machines, made inChina,are priced 20% of that of similar machines made overseas. The applications varyfrom high level garments to normal fabrics and decoration market which leads toincreased demands.

Inthe last few years, with the fast development of domestic embroidery machinesand strengthened local parts supply chain, most foreign manufactures set upfactories in China (Japan Tajima, Barudan, Korean SWF etc), these factoriesenters Chinese market by assembly machines initially, but the truth thatdomestic machines comes out with improved quality and price has greatlyhindered the sales of those assembled machines both domestically andinternationally. This also forced foreign enterprise to seek approaches to cutcost that is localized purchasing. In china the biggest sewing equipmentcomputer control R&D production base China Dahao Technical DevelopmentLimited has developed copyrighted "DAHAO" computer control that gained'more than 70% of market share in special, embroidery and sewing machine field.

Accordingto estimation, global embroidery machine demand will increase to 100,000 setsper year in year 201 0 based on 60,000 sets/year in year 2004. The sales willincrease to 100 billion Chinese yuan. With the global garment and- textileproduction shifting to China, domestic embroidery machine demand will increaseto 70,000 sets in year 2010 from 30,000-60,000 sets in year 2004, yearlyaverage growing 13%.

Demandsin Asian countries like India,Indonesiawill increase to 25,000 sets per year in year 2010 from 15,000 sets per year inyear 2004, occupies 25% of the market share. We predict the embroidery machinemarket will come to mature period and growth will be decreased after year 2010.