China The Next Big Hub For Sewing Machine Sales
The largest manufacturers of sewing machines for the household and the leaders in Original Design Manufacturers known as the ZengHsing Industrial Co, has stated that the sales this year has dropped in the region of Europe as the demand has nearly died as compared to the previous years. This may seem to be bad news for the company sales figures. Due to which they have moved the focus to other markets such as China and other Asian countries.
Almost 45% of the total sales of the firm was dependent on the European market. The last year saw a sales record of 3.12 million units whereas this year it has dropped down to 3.06 million units. This news was shared by the Taichung based company at a conference held for the investors in Taipei.
This drop does not seem to return to the highest sales recorded in the year 2014. It has been researched that there is a regular demand for 4,00,000 units each year in the Chinese markets and this could be a breakthrough if the company stepped into it and settled their feet as soon as possible.
However, this demand can go as high as the current demand by the United States which is around 2.1 million units each year. The company data showcased that Asia and North America has a share of 15 % and 24 % in the total sales ratio.
The owner of the company has decided to increase the focus on the Chinese market by improving the relations with the Chinese customers by moving some of its plants to China along with the after sales and service and logistics as well.
There is no clear capital budget planning by the company for the coming year but has plans to shell out around NT$700 million which will be spent on building a new headquarters in Taiwan country. The work would be commenced soon and completed by the year end 2019 to boost the sales. The revenue charts were quite surprising as it was not an expected one.
The year on year increase in revenue clocked 21.8 percent to a NT$551.12 million from the previous figures of NT$452.5 million. The overall revenue had a dip of 1.98 % on a yearly basis from NT$5,57 billion to NT$5.46 Billion. All this is not a good sign for the company and something needs to be done real quick to start gearing up on the sales figures.
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