Industry development cycle
As there are many ways of textile change, it is not easy to mass produce, and the popular fashion has been innovated from time to time, so the product life cycle is short, so there can not be an independent manufacturer that can cover all the operation activities, resulting in economies of scale to reduce costs, so there are many small-scale manufacturers in the industry, mutual OEM, cooperation and competition.
Factor density
At present, China's textile machinery products have a certain level of technology. China's cotton textile machinery and chemical fiber machinery, due to their practicability and moderate price, have certain advantages in the international market in terms of cost performance, and have been the main export products of China to Southeast Asia. Printing and dyeing, knitting machinery products are also increasing year by year, the growth rate has been in the top of the export of textile machinery, export varieties will be expanded. The export of textile machinery parts and equipment also has the comparative advantage of our country, which not only has a certain technical content, but also belongs to labor-intensive products, which can be matched for domestic and foreign main engines. While continuing to export textile machinery to developing countries, it can also further expand its market in Europe, the Middle East and the Americas. With Southeast Asia, Africa, South America and other countries taking their textile industry as their future development strategy and focus and making a lot of investment, the demand for textile machinery will rise, which undoubtedly increases market opportunities for the export of textile machinery in China. It is also possible for textile machinery to take advantage of China's technological and financial advantages to "go out" and invest and build factories or cooperate in the production of textile machinery in developing countries.
Entry barriers
Barrier to entry is a term used in the subject of industrial organization in modern western economics, which mainly refers to the factors that prevent enterprises from entering a certain product production. The main factors to form barriers to entry are as follows:
(1) Technical barrier: assuming that the return on investment of a product is higher than that of other industries, some enterprises are willing to enter, but the Department requires a higher level of technology, at this time, the success of entry depends on whether they can obtain the technical talents who have mastered or can master this better technology after adjustment. This means that the higher the level of technology required for a product, the less additional investment other enterprises may have.
(2) Capital Barrier: when a new enterprise is founded, it needs a considerable amount of investment to purchase machinery and equipment, labor force and raw materials. Only when the investment reaches a certain amount can it meet the requirements of scale economy and achieve better production and operation results. Therefore, the more capital a product requires, the less other enterprises may enter
(3) Legal barriers: for example, enterprises in some industries need permission and license to start business. Due to the different requirements of each product on technical level, the amount of investment required by the smaller and better scale is different, the legislative restrictions are different, and the level of entry barriers is different. The relative height of barriers to entry indicates the objective possibility of entering a department. If an enterprise wants to enter the production of a certain product, it must have the required technical level and capital amount of the product, and also conform to the relevant laws and regulations. Therefore, barriers to entry are an important factor to restrict the new investment of other enterprises.
China's textile machinery industry is a capital and technology intensive industry, which first needs large input and output, and a small amount of capital input can not be started at all. And the scale economy of textile machinery industry is very obvious. Only when it reaches a certain scale, enterprises can obtain the advantages of cost and price. The characteristics of capital barrier in this industry are quite obvious.
Risk
The development of textile machinery industry is affected by the development of the whole textile industry. At present, the State adopts the policy of "pressing and reforming" to adjust the industrial structure of the textile industry and improve the technical equipment level of the textile industry. If the textile machinery enterprises cannot adapt to this policy in product development, it may have an impact on the development of enterprises.
