In the first three quarters of 2024, the global economy maintained a slow recovery momentum, with inflationary pressures easing significantly. Developed economies such as the United States and Europe successively initiated interest rate cut cycles, gradually releasing consumption momentum and restocking demand. Manufacturing sentiment continued to improve in regions including South Asia, ASEAN, and Africa. China rolled out a series of incentive policies to stabilize the economy and expand domestic demand, gradually improving expectations for consumption, investment, and production. This created favorable internal and external conditions for the stable development and transformation of the sewing machinery industry.

After two consecutive years of economic downturn, the industry entered a cyclical growth phase in 2024, rebounding from its low point. In the first three quarters, China's sewing machinery industry seized opportunities from recovering downstream demand and cyclical development. By actively implementing the “Three Products” strategy, expanding domestic and international markets, and accelerating digital transformation, the industry achieved positive growth in key indicators—including production, sales, exports, and profitability—compared to the previous year's low base. Market vitality and business confidence have actively recovered, marking a promising start toward restorative growth and high-quality development.

I. Economic Performance of the Industry in the First Three Quarters of 2024

1. Significant Improvement in Profitability, Steady Recovery in Quality and Efficiency

During the first three quarters of 2024, the industry witnessed a rapid rebound in production and sales scale, driving notable improvements in corporate quality and efficiency. According to data from the National Bureau of Statistics, 275 large-scale manufacturing enterprises in the industry achieved operating revenues of 23.8 billion yuan, representing an 18.64% year-on-year increase—a 0.63 percentage point rise compared to the first half of the year. Total profits reached 1.132 billion yuan, up 61.05% year-on-year, with the growth rate increasing by 3.72 percentage points compared to the first half of the year. The operating income profit margin stood at 4.76%, a year-on-year increase of 35.75%, though the growth rate slowed by 0.27 percentage points compared to the first half. For enterprises above designated size, the cost per 100 yuan of operating revenue was 81.76 yuan, down 1.07% year-on-year; The ratio of three major expenses to revenue for enterprises above designated size was 9.85%, down 5.01% year-on-year.

The proportion of loss-making enterprises in the industry narrowed further during the first three quarters, with operational efficiency steadily recovering. As of the end of September, the proportion of loss-making enterprises above designated size in the industry stood at 24%, narrowing by 3.57 percentage points compared to the first half of the year. Losses increased by 11.57% year-on-year, with the loss depth reaching 18.48%, widening by 1.27 percentage points compared to the first half of the year. The finished goods turnover rate and total asset turnover rate of enterprises above designated size in the industry increased by 26.75% and 17.18% year-on-year, respectively. Accounts receivable amounted to 7.3 billion yuan, down 4.10% year-on-year, accounting for 30.75% of current operating revenue, narrowing by 16.75 percentage points compared to the first half of the year and higher than the national average of 25.93% for enterprises above designated size in the industrial sector during the same period.

Figure 1: Operating Performance of Industry Enterprises Above Designated Size in the First Three Quarters of 2024

(Data Source: National Bureau of Statistics)

2. Moderate Production Growth with Continued Inventory Optimization

Driven by recovering demand and inventory replenishment, the industry's production demonstrated a recovery-driven growth trend overall in the first three quarters. According to data from the National Bureau of Statistics, the cumulative industrial added value growth rate of large-scale sewing machinery enterprises reached 8.2% from January to September, an increase of 1.2 percentage points compared to the first half of the year. This growth rate exceeded the 5.2% cumulative industrial added value growth rate of large-scale enterprises in the specialized equipment manufacturing for light industry sector during the same period, and also surpassed the 5.8% average cumulative industrial added value growth rate of large-scale industrial enterprises nationwide.

Figure 2: Cumulative Value-Added Growth Rate of Industry Enterprises Above Designated Size, September 2023–September 2024

(Source: National Bureau of Statistics)

Data from the association's survey of 100 major machinery manufacturers shows that in the first nine months, the total industrial output value of these enterprises reached 14 billion yuan, a year-on-year increase of 25.08%. Sewing equipment production amounted to 4.53 million units, up 13.32% year-on-year. Industrial sewing machine output reached 3.16 million units, up 14.16% year-on-year. Among conventional models, computerized flatbed machines, overlockers, lockstitch machines, heavy-duty machines, and embroidery machines all demonstrated double-digit moderate growth, while template machines and automatic machines showed moderate-to-high growth. By the end of September, the number of employees at these enterprises increased by 3.80% year-on-year.

Figure 3: Growth Rates of Key Production Indicators for Top 100 Sewing Machine Manufacturers, January-September 2024

(Source: China Sewing Machinery Association)

Monthly production data from the top 100 industrial sewing machine manufacturers indicates significant year-on-year growth in the first three quarters of 2024. In January, companies proactively replenished inventories and increased exports, maintaining production at 403,000 units. February saw a decline to 269,000 units due to the Spring Festival holiday. In March, with enterprises fully resuming operations, accumulated order demand being released, and a relatively rapid recovery in domestic and international trade markets in certain regions, production surged significantly to 482,000 units. During the second and third quarters, influenced by a gradual decline in market demand, production among the top 100 enterprises saw a slight dip in April before stabilizing at around 400,000 units. In September, the production volume of industrial sewing machines among the top 100 enterprises reached 439,000 units, marking an 11.15% year-on-year increase.

Figure 4: Monthly Production Volume of Industrial Sewing Machines Among Top 100 Enterprises Over the Past Three Years

(Data Source: China Sewing Machinery Association)

In the first three quarters of 2024, the industry's sewing equipment inventory showed an overall downward trend. The inventory of sewing equipment among the top 100 machine manufacturers decreased from nearly one million units at the end of last year to 740,000 units at the end of June, and further to 660,000 units at the end of September (including 470,000 industrial sewing machines), representing a year-on-year decrease of 17.45%. The industry's inventory clearance efforts yielded significant results, with inventory structure continuously optimized.

3. Domestic Demand Shows Clear Recovery, Sales Peak Early Then Decline

During the first three quarters, the nation's series of growth stabilization policies gradually took effect. Positive improvements in development expectations for downstream industries like apparel led to increased investment demand and per capita clothing expenditure. Traditional markets such as the US and EU maintained resilient demand, providing strong support for stable production and exports in domestic downstream sectors including apparel, home textiles, footwear, and luggage. This spurred a rapid, concentrated release of phased equipment procurement demand in the first half of the year. Regional markets like Dehong, Baoshan, and Honghe in Yunnan actively absorbed industrial transfers from inland textile and apparel sectors, triggering a surge in equipment procurement demand. Concurrently, leading sewing machinery manufacturers intensified R&D and promotion of high-efficiency intelligent equipment. Through participation in trade shows, new product launches, enhanced technical services, and targeted marketing campaigns—emphasizing quick turnaround for small orders, high-volume single-item production, promotional discounts, and trade-in programs—they deepened brand outreach at the terminal level to leverage the existing market.

According to incomplete surveys and statistical estimates, against the low base of the previous year, domestic sales of industrial sewing equipment by China's leading manufacturers achieved double-digit growth at a moderate pace during the first three quarters. Quarterly trends show significant domestic sales growth in Q1. However, Q2 and Q3 saw users adopt a cautious wait-and-see approach due to factors like consumption, orders, inventory, and labor costs. Garment factories notably reduced demand for traditional sewing equipment, while procurement of template machines and automatic machines remained robust, leading to a slowdown in overall domestic sales growth.

According to the latest customs data, China imported 41,000 industrial sewing machines in the first three quarters, with an import value of US$69.76 million, representing year-on-year increases of 41.36% and 22.32%, respectively. The import value of sewing machine parts reached US$62.48 million, up 43.99% year-on-year. This indicates that the recovery in domestic downstream industries has generated significant market demand for mid-to-high-end specialized sewing equipment and automated machinery.

Figure 5: Monthly Import Value of Industrial Sewing Machines in the Industry Over the Past Three Years

(Source: General Administration of Customs)

4. Exports Steadily Rebound with Strong Growth in Key Markets

In the first three quarters, driven by the steady global economic recovery and inventory replenishment demand from developed economies in the footwear and apparel sectors, market demand in regions such as South Asia, ASEAN, Africa, and Latin America showed signs of recovery. Key overseas markets including Vietnam, India, Cambodia, Pakistan, Egypt, and Brazil generally achieved recovery-driven growth in footwear and apparel production and exports, effectively driving the steady rebound of China's sewing machinery exports. According to data from the General Administration of Customs: China's cumulative exports of sewing machinery products reached US$2.479 billion in the first three quarters, marking a year-on-year increase of 13.25%.

Looking at monthly export trends, the growth rate of China's sewing machinery industry exports turned positive starting from December 2023. In January, industry exports reached $296 million, a year-on-year increase of 3.86%. In February, affected by factors such as the Spring Festival holiday, industry exports dropped to $192 million, yet still recorded a year-on-year growth of 30.77%. In March, amid recurring global inflation and tightening capital conditions, the industry's export value reached $237 million, a year-on-year decrease of 17.24%, reflecting a contraction at the end of the quarter. During the second and third quarters, global manufacturing sentiment and international trade continued to improve, with overseas demand for sewing machinery products gradually recovering. From May to August, the industry's monthly export value averaged above $300 million, achieving a steady rebound. By the end of the third quarter, the global economy continued its recovery but saw weakened growth momentum. Influenced by factors such as heightened uncertainty in international trade, escalating geopolitical conflicts, the U.S. presidential election, and gradually weakening labor markets in major economies like Europe and the U.S., subsequent global consumption momentum appeared somewhat insufficient. Downstream users gradually adopted a wait-and-see attitude, causing the industry's monthly export value to decline to $260 million, representing an 8.70% year-on-year increase but a 16.28% month-on-month decrease.

Figure 6 Monthly Export Value of Sewing Machinery Products in the Industry Over the Past Three Years

(Data Source: General Administration of Customs)

Regarding export products, China's industrial sewing machine exports reached 3.46 million units in the first three quarters, with an export value of US$1.114 billion, representing year-on-year increases of 1.95% and 9.39%, respectively. Among these, automatic sewing machines accounted for 2.31 million units, with an export value of US$814 million, representing year-on-year increases of 4.38% and 13.47%, respectively. Automatic sewing machines accounted for 66.86% and 73.11% of the total volume and value of industrial sewing machine exports, respectively, with their share increasing by 1.55 and 2.63 percentage points compared to the same period last year. Embroidery machine exports reached 71,000 units (including products under $2,000), with export value of $472 million, representing year-on-year increases of 26.45% and 31.80%, respectively. Pre- and post-sewing equipment exports totaled 1.49 million units, with export value of $356 million, up 24.52% and 13.58% year-on-year, respectively. Sewing machine parts exports reached $325 million, up 7.26% year-on-year; household sewing machine exports totaled 7.94 million units (including manual sewing devices), with export value of $212 million, increasing by 26.01% and 8.14% respectively. All major product categories in the industry demonstrated export growth.

(Source: General Administration of Customs)

In terms of export prices, the average export prices of industrial sewing machines and embroidery machines showed year-on-year growth among various sewing machinery products in the first three quarters. Specifically, the average export price of industrial sewing machines reached $322.3 per unit, up 7.29% year-on-year, while the average export price of embroidery machines stood at $6,649.2 per unit, increasing by 4.24% year-on-year. In contrast, the average export prices for household sewing machines and pre- and post-sewing equipment showed a year-on-year decline.

Table 1: Average Export Prices of Major Sewing Machinery Product Categories in China's First Three Quarters of 2024

(Unit: USD/unit, %)

(Data Source: General Administration of Customs)

By key export markets, China's sewing machinery exports to Asia, Latin America, and Africa grew in the first three quarters of 2024, while exports to Europe, North America, and Oceania declined year-on-year. Among regional markets: Exports to RCEP markets reached $737 million, up 36.31% year-on-year, accounting for 29.74% of the industry's total exports—a 5.03 percentage point increase from the same period last year. Exports to ASEAN markets totaled $647 million, surging 49.19% year-on-year, representing 26.10% of the industry's total exports—a 6.29 percentage point increase from the same period last year. Exports to South Asian markets reached $645 million, up 39.21% year-on-year, accounting for 26.00% of the industry's total exports, an increase of 4.85 percentage points compared to the same period last year; Exports to West Asian markets amounted to $194 million, down 14.42% year-on-year; Exports to the EU market totaled $105 million, down 20.19% year-on-year; Exports to East Asia totaled $78.81 million, down 17.33% year-on-year; exports to Central Asia reached $74.65 million, down 39.25% year-on-year.

Figure 8 Exports of China's Sewing Machinery Products by Continent in the First Three Quarters of 2024

(Data Source: General Administration of Customs)

Figure 9 Major Export Markets for China's Sewing Machinery Products in the First Three Quarters of 2024

(Data Source: General Administration of Customs)

By country, over half of the 203 countries and regions to which China exported sewing machinery products in the first three quarters of 2024 saw year-on-year growth in export value. The top seven export markets (India, Vietnam, Pakistan, Brazil, Bangladesh, Indonesia, Cambodia) all recorded substantial year-on-year increases in export value. Among the top 20 export markets, 13 recorded year-on-year growth in export value. Seven of these markets achieved growth exceeding 30%, while one market—Pakistan—saw its export value double year-on-year.

Figure 10 Growth in Export Value to Major Markets for China's Sewing Machinery Products in the First Three Quarters of 2024

(Data Source: General Administration of Customs)

II. Outlook for Industry Economic Performance in Q4 2024

Overall, driven by the phased recovery of both domestic and international markets, China's sewing machinery industry demonstrated positive momentum of bottoming out and rebounding in the first three quarters of 2024.

In Q4, the IMF's October 2024 forecast indicates that global economic growth is expected to remain stable, with inflation likely continuing to ease, creating favorable conditions for major central banks to ease monetary policy. However, the global economic landscape remains complex and volatile due to intensifying great power rivalry, ongoing geopolitical conflicts, and slowing consumption growth in major economies. Amidst the combined impact of multiple factors, China's economy will gradually strengthen its growth momentum through the steady release of domestic demand and precise policy adjustments, particularly the concentrated rollout of a series of incremental policies. The consumer market is expected to gradually recover, supporting continued stabilization and growth of the economy. This will lay a solid foundation for achieving the annual GDP growth target of 5%.

From the perspective of downstream industries closely tied to sewing equipment, sectors such as apparel, leather goods, footwear, home textiles, and luggage remain in a moderate recovery cycle amid the weak rebound of the global economy and consumer demand, demonstrating resilience and potential for development. In the fourth quarter, indicators including production, sales, revenue, profits, and investment across these downstream industries are expected to maintain low-speed growth and stable development. Post-U.S. election, the new administration's anticipated policies—including potential tariffs on global imports and Chinese goods—may temporarily stimulate restocking demand in Europe and the U.S., along with phased benefits for downstream industries through increased production and export acceleration.

In Q4, China's sewing machinery sector is expected to maintain relatively stable development. The trend of slowing domestic demand coupled with growing exports is projected to persist, with market growth further concentrating on specialized, functional, and automated equipment. Industry enterprises must maintain firm confidence in development, closely align with strategic requirements for building a modern industrial system and fostering new productive forces, pursue progress while ensuring stability, identify opportunities amid challenges, deeply address user pain points, accelerate technological innovation, advance intelligent transformation, moderately increase production and replenish inventories, focus on overseas markets, and continuously...