http://www.globalsew.com Nieuwsarchief urn:uuid:000bc230-e310-a8fc-858d-fdda56805157 2017-11-25 02:56:39 www.globalsew.com info@www.globalsew.com <![CDATA[Lancering nieuwe website]]> urn:uuid:77e16319-48cb-1d8b-a469-4d524908a68e 2012-12-27 11:41:05 Dear Ladies and Gentlemen,

We are very happy to introduce our new website. This will enable us to give you more information in the future, with videos, leaflets and parts / instruction books of the Global line.

There is a lot happening in the sewing machine world. Zoje machine company from China has purchased a major part of the shares in Durkopp / Adler from Bielefeld. This was necessary because the previous Chinese shareholder Shanggong was and is a very weak company with a very poor management. From day one it was clear that there was no ground for success with this cooperation. We wish this new cooperation a lot of success, but I hope that they will not try to invent the wheel again. Many people try this and they fail, because there are new rules in the industrial sewing machine world and the old fashioned ideas are over.

The market is very strange after the terrible year 2009, in which the market collapsed in a big way. I am so glad that 2010 is a lot better. Because of this terrible year in the industry, a lot of machine and parts suppliers fired a lot of staff or went down completely. All of this results in longer delivery times for machines and parts. The raw material, labour salaries and energy costs are going up dramatically, which will result in higher prices for now and in the future.

This is reality for the future, but to be honest, I think that the selling price of a new machine is so low and the clothing manufacturer can work for so many years on that machine, so the cost price per day per machine is next to nothing.

I hope you like my first internet newsletter and I will always try to write sharp opinions in the future.

Warm regards,

Frans de Vlieger

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<![CDATA[Sewing machine circus]]> urn:uuid:5f44b3d2-5367-cf0e-9437-4296bde6f748 2012-12-27 11:40:20 What will the year 2011 bring us?

China produced in 2010 more than 2.7 million industrial sewing machines for export to mainly the Far East, India and Brasil. China is changing rapidly with monthly inflation rates of 4,25 % in January and an expected 7 to 8 % for February and March. Almost daily we receive new price increases from our suppliers.

More than 30% of the Chinese workers did not return to their job after the recent Chinese holidays and the workers who did show up at work demanded salary increases of more than 30%. This labour problem added to the currency situation of the Yuan and the US dollar and the increasing prices of oil and raw materials, will definitely have an effect on the prices of sewing machines in the coming months of between 8 and 15%. Ho Hsing, our most stable supplier, even increased their prices with 8 % starting April of this year.

The shortage of parts for production and spare parts supply is one of the largest problems in China. Sunstar has not been supplying parts for over six months to us and does not even reply to our mails.

This hurts our Global Parts business no doubt, but on the other hand it will also get weakly organised sewing machine producers off the market.

I have a long time friend who is the owner of a sewing machine factory in the Shanghai-area. Last year a hightech company offered him a huge price on his building. On top of the purchase price, the hightech company offered to take over his whole staff. My friend, being a real sewing machine man, with more oil (i.e. sewing machine oil) running through his veins than blood, declined the offer. Last February, his technical manager, who had been working for him for more than ten years, demanded a salary increase of 100%. If he would not be given this salary increase he would not show up at work after the Chinese holidays. My friend was shocked. In addition to the problem with his technical manager, 40% of his workforce did not return to work and his parts supplier announced an 18% price increase for parts. As you can image, the level of sewing machine oil in his veins decreased rapidly and he decided to reconsider the offer. He contacted the high tech company again, and they offered him straight away an additional 30% on top of their previous offer. His decision was easy and he sold for the 'offer you can't refuse'. Good for him, but it means one less supplier left in the market. One less good supplier I might add. Unfortunately. And he will not be the last one to surrender.

The positive side of this story is, that because of the salary-increases in the Far East, the shortage of workers and the high transport costs, I expect a lot of the textile and shoe production to return to Europe and the US. This provides good opportunities for our dealers in the coming years. All active dealers with a good service organisation will do well in the coming years.

Another positive point is that, with the prices of new machines increasing, IMCA, our used machine department, will increase their sales. We already get positive reactions from the market. And as our national soccer champion Johan Cruyff once said: 'Every disadvantage has its advantage'. He is right.

I look forward to welcoming you at our stand C80 in Hall 5.1 in Frankfurt during the Texprocess exhibition in Frankfurt from May 24-27, 2011.

I look forward to your comments and opinion. Please feel free to reply to this column.

Frans de Vlieger

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<![CDATA[Sewing Machine Future]]> urn:uuid:c5fdd65a-cebd-fc2d-3c23-579c8c3ba524 2012-12-27 11:37:15 Dear readers,

The sewing machine industry is changing rapidly and unexpected things are happening. Last month we received a letter in which the former famous Japanese blindstitch machine maker ‘Treasure’ (Nara company), announced that they will cease production after a period of almost ninety years. The high value of the Japanese Yen and their conservative way of doing business, made an end to this famous company.

I predict a good future for the Strobel company as the only high quality blindstitch producer. Who will be next? Pfaff seems to have problems again and Golden Wheel will be producing most of the Pfaff industrial sewing machines in the future. This will mark the ‘beginning of the end’ for Pfaff.

Visit to China

Last week I visited China and the situation of the Chinese sewing machine world is quite strange. The sales of industrial sewing machines collapsed in the last 6 months of 2011 in countries like China, Mexico, Brazil, Egypt and India. All of this is the logical result of the decreased sales of ready made garments worldwide and subsequently local sewing machine dealers in these countries are suffering.

Many of the Chinese sewing machine producers are in bad shape. Unexpected things may happen to medium-size sewing machine producers. Especially the producers of cheap, low quality machines, that are only interested in quantity and never paid attention to their production, quality control or spare parts supply.

Chinese Government and Banks will provide short term help, but they will not keep putting money into technical bankrupt companies. Some producers will therefore disappear.

Welcome back

We are still happy with the sales of our Global line. As I have always refused to step into the low quality sewing machine market. One dealer once told me that sewing machines could be bought cheaper elsewhere and I replied: ‘Is it of the same quality? Do they give the same delivery service and what happens with the after-sale service or should you need spare parts?’

My answer was simple: ‘Go ahead and give it a try and know that you are always welcome back.’ I have never understood why a dealer would want a scrappy, cheaper machine. It only works against you in the end.

Great!

A few weeks ago, I told a local Dutch dealer that some machines would be more expensive in 2012. His reply, much to my surprise was “Great!” I asked him why. “Well, I can make more profit (he receives 30% discount) on a machine which costs € 1.200 than on a € 1.000 machine”. He is so right.

The dealers in general have to put more effort into their search for good machines with a good margin instead of letting the end-users control the market price. It is obvious that the online sales will increase, but good advice and service remains very important for the sale of an industrial sewing machine.

Last week a clothing factory that bought a sewing machine on internet in the Far East, called us and asked us to build up the machine. They were facing serious problems with the assembly.

I replied that he should ask the dealer in the Far East to help him.

We would never assist these price hunters. This particular clothing factory called back this week and offered the machine for sale to us for a very low price because they realized they made a mistake. On top of this they asked us if we knew a good dealer in their area.

We will try to give the best service and will do our utmost to make 2012 a good and profitable year for the industry again.

Please check out the new movies of our Global products on our website and on www.youtube.com. These new movies will make your sale easier, because you can show your potential customer the ‘machine in action’.

Best regards,

Frans de Vlieger

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