Sewing Machine And Parts Enterprises Cooperate To Win The Future.

"In spirit, we are always the two class citizens in the industry."

For decades, the history of sewing machinery industry in China has never ceased.

Sometimes they were intimacy, but before long they would.

In particular, several years before and after the outbreak of the international financial crisis, the harsh market realities and the subsequent sudden market recovery, the difference between zero and zero was amplified in panic.

From the initial oversupply of spare parts to the extremely short supply of spare parts, the lack of stable performance of China's sewing machine zero system is threatening the healthy and healthy development of China's sewing machinery industry.

"In the eyes of sewing machine enterprises, we are their own.

Chen Qihong's accusations of zero cooperation in the past had no feelings.

This is based on the cooperation between China's sewing machine enterprises and parts enterprises before the outbreak of the international financial crisis.

At that time, the whole zero system was constrained by the industry triangle debt. Many parts enterprises were often forced to take part in the cooperation with the whole plant because of their small scale and low profit level.

Chen Qihong believes that the supply system based on credit is a "basic" supply system.

"Originally, the profit of parts enterprises in the whole industrial chain of sewing machines is relatively low, and the whole machine enterprises occupy our cash flow, and social attraction can not attract other sources of funds, which is one of the reasons for the lack of funds for our technological pformation."

However, the shortage of technical pformation funds brings about low technical content of parts and components, low quality level and low added value, and hinders the quality and technology upgrading of China's whole machine products.

To a certain extent, this has become the main reason for some enterprises to default on their payments and "make a decision".

As a result, the development of the whole zero system has formed a deadlock to a certain extent. The upgrading of the whole industry lacks of upward impetus at the supply chain level.

The unexpected financial crisis has undoubtedly impacted on the zero supply system of Chinese sewing machines.

But for now, the financial crisis has not directly nurturing a more competitive and healthy Zero Zero cooperation model. It seems to have yet to untie the deadlock of zero cooperation.

However, the international financial crisis has also had a direct and profound impact on the comparison of forces between zeros and zeros.

To put it simply, after the international financial crisis, due to the shortage of supply and the integration of parts and components industry, the bargaining power of the rest of the spare parts enterprises has greatly improved, and the improvement of the strength of one side is considered to be the foundation for shaking up the whole zero cooperation mode in the future, though this is the result after the whole spare parts industry has experienced great pains and heavy losses.

Chen Qihong described the tragedy of spare parts industry during the financial crisis and the change of zero relationship after the crisis.

"As we all know, during the financial crisis, compared to the whole machine enterprise, China's sewing machine parts enterprises died more and suffered more damage, because the scale of the parts enterprises is generally small, and the risk of low profit margins is not enough."

Chen Qihong said, "in the parts enterprises that survived, the impact of the financial crisis is also huge, because lack of work has led to a serious loss of staff, these backbone employees are enterprises have spent a lot of energy to cultivate, their departure has greatly restricted the capacity recovery of parts enterprises."

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With the unexpected recovery of the market after the crisis, the rest of the spare parts enterprises failed to recover their capacity in time, and the supply of spare parts products completely overturned the credit mode of the whole enterprise in the past.

Yang Junbin, assistant director of Tongyu Holdings Group, recalled that in 2010, the whole machine company was holding a cash company and stationed parts enterprises.

This is vividly interpreted as the "turnover" of parts enterprises.

In Chen Qihong's view, this reflects the past that parts companies have not been treated well.

It has partly led to the "imbalance" of sewing machine supply chain.

"Although the market is recovering, our capacity recovery is very slow, because in terms of technological pformation, our funding sources are very limited, and we only accumulate on the basis of profit rolling development.

We can't get the support of local governments like the whole enterprise. The whole enterprise can get financial support, bank loans and other local support with the introduction of high-tech projects. "

Chen Qihong said, "at the same time, our production lacks enough technical staff. The reduction during the financial crisis can not be smoothly replenish after the crisis, because the attraction of our industrial society is not strong enough. We can only produce in batches. The scale is not big. It can form a systematic production development like automobile and other industries. It can make all workers stable and active. Therefore, we basically rely on overtime production to restore production capacity."

The sewing machine parts enterprises that have already turned over at the moment want to rearrange the past zero relationship and fundamentally protect their own interests, while the whole machine enterprises also expect to establish a more stable and high-quality supply chain for parts and components.

As a result, the industry seems to be looking forward to the dissolution of the past zero relationship and upgrading to a more stable supply chain system with higher technology content and additional value.

"Now, the quality technology of the whole machine still has a gap compared with the top level of the world, and needs to be promoted. It needs the joint efforts of the whole sewing machine industry chain."

Chen Qihong said, "but this is not easy to pull the whole machine enterprise, because the initiative in the whole machine enterprise, their economic strength is the strongest, if the whole machine enterprise has no intention to improve the quality of the supply chain, then the parts enterprises will not have the related impulse."

From the perspective of the whole enterprise, upgrading the quality of parts and components is very urgent for the development of the whole machine.

"At present, the industry has not yet entered a healthy development channel. On the one hand, we need to ensure supply. On the one hand, we need to supply more parts than a car, and it is difficult for the whole machine enterprise to complete it alone. Therefore, a stable supply system is needed.

On the other hand, we also need to change the situation that the added value of parts and components is not high, and the technology content is not high.

Yang Junbin said, "therefore, after so many twists and turns since the financial crisis, we have some ideas in the future zero to zero cooperation mode, such as the introduction of the upstream shareholding mode, although there is no definite timetable, but we hope to change."

In this regard, Chen Qihong expressed approval, in his view, if the whole enterprise if active and part enterprise repair, develop strategic partnership, that is very eyeing, long-term development, will be able to form a huge competitive advantage.

"Their driving role will inevitably get the response of parts enterprises."