The operating revenue of domestic sewing machinery enterprises above designated size exceeds 30 billion yuan, and the number of enterprises remains stable. According to data from the China Sewing Machinery Association, in 2021, the operating revenue of enterprises above designated size in the Chinese sewing machinery industry was 37.197 billion yuan, a year-on-year increase of 39.9%; The total profit of enterprises above designated size in China's sewing machinery industry was 2.448 billion yuan, a year-on-year increase of 46.6%. From 2017 to 2021, the number of enterprises above designated size in China's sewing machinery industry increased from 231 to 240, and the number of loss making enterprises reached a high of 58 in 2020. In 2021, the number of industry loss making enterprises was 27.

Due to sluggish domestic demand and increased inventory, the industrial added value of the sewing machinery industry decreased year-on-year in 2022. In 2022, due to weak domestic demand and high inventory in the previous year, industry production orders decreased quarter by quarter, showing a trend of overcapacity and production contraction. According to data from the National Bureau of Statistics, the cumulative growth rate of industrial added value of enterprises above designated size in China's sewing machinery industry in 2022 was -3.2, far lower than the average of 3.6 added value of industrial enterprises above designated size nationwide. From the perspective of the monthly industrial added value growth index of the industry, since April, the index has changed from positive to negative, and dropped to the lowest value of -11.3% in December, which is significantly lower than the national average added value of industrial enterprises above designated size. The industry economy has been hovering at the bottom of the year.

Industry inventory is gradually decreasing, and industrial sewing machine inventory is approaching the low point of 2021. From the perspective of industry inventory situation, the reduction effect of the sewing machinery industry in the first quarter of 2023 was significant. The inventory of finished products of 292 enterprises above designated size in the industry decreased by 13.60% year-on-year, and the total inventory of 100 complete machine production enterprises in the industry was about 880000 units, a year-on-year decrease of 31.34%. Among them, the inventory of industrial sewing machines has been negative year-on-year for eight consecutive months, gradually decreasing from over a million units in July 2022 to 620000 units at the end of the first quarter, a year-on-year decrease of 44.19%.

The cyclical nature of the industrial sewing machinery industry is evident, and from a historical perspective, the downward phase of the industry is 1-3 years.

Taking the production of industrial sewing machines as a reference, the sewing machinery industry has experienced a downward trend in the past decade, with a duration of 1-3 years from 2011 to 2012, 2013 to 2016, and the second half of 2021 to present. The previous round of recovery in the sewing machinery industry began in 2019, and in 2020, it briefly rebounded due to the impact of export decline in the first half of the year. In 2021, the industry achieved ultra-high growth due to the accumulation of kinetic energy. Starting from the second half of 2022, domestic demand declined and inventory increased. The industry's production orders decreased quarter by quarter, showing a trend of overcapacity and production contraction, and the industry entered a period of adjustment.