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| Issue date:12/04/2010 |
| ATA Journal for Asia on Textile & Apparel - Apr 2010 Issue |
| Source:Journal for Asia on Textile & Apparel |
| by Pony Liu |
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| Good services, an attractive price-performance ratio of machines and deep understanding of the market are some of the competitive advantages of Yuren Knitting Machine, allowing it to become the biggest builder of computerized flat-knitting machinery (in volume) in China, according to the company chairman, Frank Sun |
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| Frank Sun, Chairman of Yuren Knitting Machine |
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Established in 1988 in Cixi city (close to Ningbo city), Zhejiang province, Yuren Knitting Machine develops, manufactures and markets China-made fully computerized flat-knitting machinery under the brand name of Cixing since 2003. The sales topped RMB300 million in 2007. The Cixing machines of Yuren currently share 60% of the total Chinese production of the computerized flat-knitting machinery, and 40% of the China market in this segment, Yuren's chairman, Frank Sun said. The company also markets its machines abroad to Vietnam, Cambodia, Iraq, Jordan, Russia, Mexico and so on.
The company is a top brand of Chinese fully computerized flat-knitting machinery and among the top three in the world (in volume), he said. "The rising labor and materials costs in the manufacturing sector make the move towards automation inevitable. China is a major knitwear producer and a key user of computerized flat-knitting machinery, and we would like to grasp the market opportunities at the best time."
Ensuring trouble-free use of machines
Yuren began its research efforts about a decade ago, which has been strengthened with a research team possessing expertise in computerized flat-knitting machinery design, specialized technology, industrial automated control and pattern design. The company owns more than 40 patents in China, including eight inventive patents, being applied in the machines made by Yuren, Mr Sun said.
Being one of China's biggest textile machinery builders, Yuren stresses the importance of services in the aspects of training and post-sale services. Yuren provides free training to its clients and over 200 attendees are trained each month. In the meantime, the company monthly trains about 60-80 internal staffers every month to teach them how to take care of the clients' needs after the sales are made.
"Sharing with our clients the same language and cultural background, we are attentive to their requests and needs. Above all, we ensure that clients are able to obtain our services at the lowest possible cost," said Fang Guo-ting, Assistant to Chairman of Yuren.
Yuren ensures its repair technician to arrive in 30 minutes when its client encounters downtimes |
"Our aim is to avoid production downtimes of our clients – their biggest cost. If an imported machine is not working, the repair often takes two to three days. In general, we guarantee our repair technician to arrive at the location in 30 minutes," explained Mr Fang. This is achieved by 600 after-sales people stationed across the country, who on average make sure a normal operation of about 100 Cixing machines in the neighborhood.
"With sound financing position and good relations with several banks, our company also provides financing services to clients, which is not common in the industry. Last year, such financial support reached RMB 1.5 billion, and the figure is rising this year," he said.
Price-performance ratio must be attractive
Mr Fang added that the Cixing machines are known for its good price-performance ratio. These machines offer 90% performance at less than half of the cost of similar imported machines. Adding the services unrivalled by other imported brands, he believed these machines are attractive.
Mr Fang said this advantage has also the attention of overseas users. The Yuren company has set up its foreign trade department to deal with these inquiries and it markets the Cixing machines through about ten agents abroad. So far, the company has shipped over 1,000 machines overseas, he added.
"When making a decision to buy a textile machinery, textile manufacturers have put a great emphasis on machinery stability, as well as its productivity, lifespan and price," he said. A deep understanding of market needs enabled the company to maintain the business despite a 10-20% decline in the industry under the adverse influence of the global economic downturn. The company received orders that would last its production until this August, Mr Fang said. Additionally, the delivery has been reduced by five days to about 60 days.
Production facility of Yuren Knitting Machine |
Yuren currently supplies seamless machinery for lingerie producers. However, Mr Fang was relatively cautious in regard to the seamless technology. To him, it is not easy to make it a market trend.
"Seamless knitwear does not necessarily provide a better quality product, as seamed knitwear can have a better silhouette with linking technologies. From the apparel-making point of view, the seamless knitwear technology is not necessarily advantageous, such as in the process of collar making. Cost benefit remains important in the use of seamless technology," he commented.
Yuren has invested substantially in seamless technology and Mr Fang said that such machines from Yuren will be different from imported technologies, highlighting a satisfactory price-performance ratio.
Keep innovating
The annual research budget for Yuren is approximately RMB 30-50 million, or 3-5% of the annual sales turnover, the company said. The Cixing machinery experiment center established jointly with the Chinese Academy of Sciences aims to improve the quality and lifespan of Cixing machines, he said, adding that the company does not rule out the possibility of further technological development in cooperation with foreign textile machinery builders.
Meanwhile, he is aware that Chinese industrial manufacturing has yet to attain the internationally advanced standard, for example in precision and stability. In addition, "the West plays a leading role in the global fashion stage, while Chinese companies are in a relatively weaker position." Mr Fang continued: "We have set up a fashion center to narrow the gap in this area, in cooperation with a number of Chinese institutes such as Beijing Institute of Fashion Technology, Donghua University (Shanghai), and the China Fashion and Color Association.
Mr Sun added: "Looking ahead, we are focusing on knitting machinery, primarily with the computerized flat-knitting technologies, but we will also extend our product offerings, so as to bring about mutual benefits and co-development with clients."
Acquisition talks
Fang Guo-ting, Assistant to Chairman at Yuren |
The company expected to commence a new project that adds an annual production of 13,000 units of computerized flat-knitting machines, thereby boosting its total annual capacity to 20,000 units.
Its shares in the domestic and overseas markets are projected to reach 50% and 40% respectively in 2010. The company will share about 75% and 50% of the domestic and overseas markets respectively by 2011 after it enlarges the production capacity to 30,000 units a year, according to Mr Fang.
Additionally, Mr Sun hoped the authorities to offer more support in technology advancement and corporate development, especially when acquiring overseas companies.
Yuren is currently negotiating with a foreign textile machinery builder about an acquisition. The foregin firm is known for its cutting-edge technology and research capability. The transaction is expected to complete this May, Mr Fang revealed.
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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