RE­PORT – JACK OVER­SEAS DIS­TRIB­U­TORS’ MEET 2018

Stitch World - - NEWS - By 2017, China had around 800 sewing ma­chine man­u­fac­tur­ers and most of them are not in­no­vat­ing the sewing pro­cesses, there­fore, the gar­ment in­dus­try has ac­tu­ally not been able to catch up with the chang­ing trend.

One surely feels glee­ful when he/she is wel­comed by count­less peo­ple giv­ing ec­static salu­ta­tion claps and chant­ing ‘ Wel­come to Jack’ again and again. Since 2016, Jack Sewing Ma­chine Co. Ltd., a lead­ing sewing ma­chine man­u­fac­turer of China, has been wel­com­ing hun­dreds of guests from all across the world ev­ery year. As part of StitchWorld and Ap­parel On­line mag­a­zines, we have been priv­i­leged to be a part of all three edi­tions of the meet. The 3rd ‘Over­seas Dis­trib­u­tor Meet’ in Oc­to­ber 2018 wit­nessed around 1,000 cus­tomers, in­dus­try ex­perts and dis­trib­u­tors as well as the team of Vibe­mac, an Ital­ian pioneer of Jeans au­to­ma­tion which was re­cently ac­quired by Jack. Sign­ing cer­e­mony and in­tel­li­gent man­u­fac­tur­ing pre­sen­ta­tions…

The meet re­volved around the theme ‘Jack Leads in Gar­ment In­tel­li­gent So­lu­tion’. The first day started with a con­fer­ence where sign­ing cer­e­monies of Jack­Vibe­mac col­lab­o­ra­tion as well as Jack-Xuhao col­lab­o­ra­tion took place.

Jack bought 80 per cent stake in Vibe­mac for a to­tal of EUR 23.2 mil­lion ( US $ 28.6 mil­lion) in early 2018 and, since then, this col­lab­o­ra­tion has been mak­ing head­lines for all good rea­sons.

“We are pos­i­tive about this merger as China it­self is the largest denim man­u­fac­tur­ing coun­try in the world and we be­lieve Jack’s strong chan­nel ad­van­tage in China is surely go­ing to help Vibe­mac get its due recog­ni­tion in the Chi­nese denim mar­ket,” com­mented Carlo Guer­reschi, Founder, Vibe­mac af­ter the sign­ing cer­e­mony.

The other ac­qui­si­tion by Jack was that of Xuhao, a renowned name in China due to its strong shoe and leather prod­ucts man­u­fac­tur­ing so­lu­tions, and the merger is ex­pected to help Jack ex­pand in these seg­ments. “As we are tar­get­ing to di­ver­sify, Xuhao will help us un­der­stand what all kind of tech­nol­ogy so­lu­tions shoe and other leather prod­ucts need so that with our strong R& D, we can fur­ther in­no­vate Xuhao’s sewing ma­chines,” in­formed Vin­cent Guo, Vice Pres­i­dent, Jack Group.

China has been fac­ing tough lo­cal con­di­tions, so it is now gear­ing it­self up to im­bibe smart tech­nol­ogy to counter the in­creas­ing wages and ris­ing tar­iffs to US. This point was dis­cussed at great length among the in­dus­try ex­perts.

He Dong­dong, CEO, IROOTECH opined, “The gar­ment in­dus­try in China is mov­ing away from low­cost man­u­fac­tur­ing; in­stead it is tar­get­ing to build smart fac­to­ries within to com­bat cost chal­lenges.” IROOTECH is a Shanghai-based IoT so­lu­tion provider which is cur­rently cater­ing to trans­port and au­to­mo­tive in­dus­tries but, with the ris­ing at­ten­tion of smart man­u­fac­tur­ing within ap­parel sec­tor, the com­pany will soon start pro­vid­ing IoT so­lu­tions to this in­dus­try as well.

Speak­ing on the same sub­ject, Yang Jinchun, Vice Chair­man of China Gar­ment As­so­ci­a­tion, ex­pressed that the ris­ing cost of ap­parel man­u­fac­tur­ing in China is a ma­jor con­cern and over the last few years, de­spite EU, USA and Ja­pan grow­ing in their ap­parel im­port, China has been wit­ness­ing neg­a­tive trend in these ma­jor mar­kets. “The sit­u­a­tion will fur­ther worsen if nec­es­sary steps are not

taken. Smart man­u­fac­tur­ing is the key which should in­clude data col­lec­tion, in­te­grated re­sources and con­tin­u­ous in­no­va­tion in or­der to re­vamp gar­ment man­u­fac­tur­ing within the coun­try,” opined Jinchun.

“In­tel­li­gent sewing is one of the many as­pects to make man­u­fac­tur­ing ‘smart’ and that can­not be over­looked in the process,” said He Ye, Chair­man of China Sewing Ma­chin­ery As­so­ci­a­tion ( CSMA). She fur­ther ex­plained that by 2017, China had around 800 sewing ma­chine man­u­fac­tur­ers and most of them are not in­no­vat­ing the sewing pro­cesses, there­fore, the gar­ment in­dus­try has ac­tu­ally not been able to catch up with the chang­ing trend. So, to trans­form com­pa­nies within China, CSMA car­ried an in­tel­li­gent sewing fac­tory and tech­ni­cal ser­vice al­liance project in 2017 on 20 man­u­fac­tur­ing com­pa­nies from cloth­ing, au­to­mo­tive, home tex­tiles, shoe and in­te­rior sec­tors.

The project in­cluded the re­vi­sion of rel­e­vant stan­dards in the field of in­tel­li­gent sewing and, with the help of this project, CSMA found some bot­tle­necks and con­straints that need to be re­moved. “Weak foun­da­tion of soft­ware and hard­ware; lack of pro­fes­sion­al­ism and tra­di­tional way of look­ing at prob­lems were com­mon is­sues ob­served in all 20 fac­to­ries,” said

He Ye. How­ever, with strate­gic route, train­ing as well as proper root cause anal­y­sis of the prob­lems, the fac­to­ries have started trans­form­ing into in­tel­li­gent fac­to­ries.

He Ye com­mented, “In or­der to ac­cel­er­ate the de­vel­op­ment of the in­tel­li­gent in­dus­try, our as­so­ci­a­tion has al­ready started to ex­plore and pro­mote rel­e­vant work in the sewing sec­tor. We have or­gan­ised teams to con­duct reg­u­lar bench­mark­ing anal­y­sis of sta­tus quo of the in­dus­trial in­tel­li­gent sewing re­search and de­vel­op­ment.” It’s worth men­tion­ing here that 10 fac­to­ries, till Oc­to­ber 2018, com­pleted suc­cess­ful eval­u­a­tion af­ter the project, while the re­main­ing 10 are soon to be eval­u­ated.

Ruan Jix­i­ang, Founder, Jack Group, while con­clud­ing the cer­e­mony, in his pas­sion­ate pre­sen­ta­tion, dis­closed the role of Jack sewing ma­chines to help China at­tain ‘in­tel­li­gent fu­ture’ for its gar­ment in­dus­try. Ruan came up with two plans: tech­ni­cal and busi­ness de­vel­op­ment. “Deskilling of work­ers, qual­ity in gar­ments, flex­i­ble pro­duc­tion and fast delivery are the needs of to­day’s gar­ment in­dus­try which we aim to achieve in our tech­ni­cal plan, while our busi­ness de­vel­op­ment plan in­cludes strate­gies which are de­signed to im­ple­ment tech­ni­cal plan on a broader scale,” ex­plained Ruan.

Fac­tory visit…

A fac­tory visit can be made a fun-filled ac­tiv­ity pro­vided the host is some­one like Jack. Hun­dreds of vis­i­tors from all parts of the world were di­vided into six groups and each group was led by at least three of Jack’s team mem­bers who han­dled all the tech­ni­cal queries of the vis­i­tors. The vis­i­tors here got to know some un­known yet cap­ti­vat­ing facts about Jack. With the help of US $ 20 mil­lion in­vest­ment, Jack’s Xi­achen-based fac­tory is known as the China’s first in­tel­li­gent pro­duc­tion line

Hun­dreds of vis­i­tors from all parts of the world were di­vided into six groups and each group was led by at least three of Jack’s team mem­bers who han­dled all the tech­ni­cal queries of the vis­i­tors. The en­tire fac­tory premise was wellor­gan­ised and vis­ual com­mu­ni­ca­tion in­side the fac­tory was its strong point. In its en­tire fac­tory, Jack pro­motes 6S rather than work­ing on 5S prin­ci­ple.

of sewing ma­chine shells, a break­through in the man­u­fac­tur­ing of sewing ma­chines. The en­tire fac­tory premise was well- or­gan­ised and vis­ual com­mu­ni­ca­tion in­side the fac­tory was its strong point. Most of the times, it is ob­served that fac­to­ries pro­mote 5S when it comes to ‘Qual­ity Man­age­ment Sys­tem’ im­ple­men­ta­tion over­look­ing the 6th ‘S’ which is Safety. But, that’s not the case here. In its en­tire fac­tory, Jack pro­motes 6S rather than work­ing on 5S prin­ci­ple. Ex­plain­ing the im­por­tance of this kind of prac­tice, Lu­cian, Re­gional Man­ager, South Asia De­part­ment, Jack said, “Safety is not some­thing that should ever be over­looked and all the fac­to­ries must ad­here to safety stan­dards. Jack’s vi­sion is clear: The more you see some­thing, the more you re­mem­ber that and push your­self to fol­low that.” The work­ers and su­per­vi­sors in the fac­tory were seen fol­low­ing all the safety rules as well as were found wear­ing Per­sonal Pro­tec­tive Equip­ment ( PPE) such as glasses, gloves and mask, wher­ever nec­es­sary.

Fur­ther, the CNC work­shop in the fac­tory con­sists of three pro­duc­tion lines: lock­stitch A4 line, lock­stitch A6 line and over­lock C6 line, and over­all monthly out­put is 52,000 units ma­jor­ity of which comes from the A4 line which con­trib­utes 32,000 units. The test­ing and assem­bly areas of the fac­tory left the vis­i­tors amazed as high au­to­mated equip­ment were seen be­ing used to check oil spillage, nee­dle pen­e­tra­tion and thread ten­sion etc.

More­over, in an in­ter­est­ing rev­e­la­tion, Jack took all the vis­i­tors later in the day to the newly made beau­ti­ful ex­clu­sive show­rooms of MAICA, Vibe­mac and Jack in a sep­a­rate build­ing where each and ev­ery prod­uct of the three com­pa­nies were up on dis­play for the vis­i­tors. The show­rooms have been op­er­a­tional since May 2018 and are ex­pected to play a key role in Jack’s brand­ing strat­egy to pro­mote MAICA and Vibe­mac.

The visit to Xi­achen fac­tory was fol­lowed by the visit of Bullmer cut­ting and spreading divi­sion in Lin­hai. The tech­no­log­i­cal visit was in­deed an en­rich­ing ex­pe­ri­ence help­ing the vis­i­tors un­der­stand Jack’s R& D ca­pa­bil­i­ties and qual­ity stan­dards in a bet­ter way.

The An­nual Over­seas Dis­trib­u­tor Con­fer­ence…

The An­nual Jack Global Dis­trib­u­tor Con­fer­ence was sched­uled on the last day and was held in Taizhou In­ter­na­tional Ho­tel. The con­fer­ence kicked off with the key­note speech of Jack’s Founder Ruan Jix­i­ang on ‘ Value Mar­ket­ing’ fol­lowed by a pre­sen­ta­tion of Jack Strat­egy re­port. Ac­cord­ing to Ruan, stronger tech­nol­ogy; faster ser­vices; higher long-term value of prod­uct; and bet­ter qual­ity is the com­bi­na­tion that makes a brand strong enough to grab the top po­si­tion and Jack is ex­actly fol­low­ing the same mantra. “We are fiercely mov­ing on our way to be­come the world’s num­ber one sewing tech­nol­ogy provider,” shared Ruan.

In the new era of in­tel­li­gent man­u­fac­tur­ing, re­gard­less of tra­di­tional busi­ness or the fu­ture mar­ket, he fur­ther opined that the price war will not only de­feat the un­beaten com­peti­tors, but will also indi­rectly af­fect the value of the brand it­self and lead the whole sewing in­dus­try to en­ter into the vicious cir­cle. “What Jack needs to do is to cre­ate value for cus­tomers by qual­ity and tech­nol­ogy, and let the whole in­dus­try move to­wards be­nign de­vel­op­ment. Only by mov­ing to­wards value mar­ket­ing, we can achieve the set tar­get,” ex­plained Ruan.

But what ex­actly is value mar­ket­ing? To un­der­stand the same, one has to go back in time when peo­ple used to think that nee­dle and nee­dle plates are eas­ily re­place­able parts and there­fore these parts were not given due im­por­tance. But, with the chang­ing mind­set and tech­nol­ogy evo­lu­tion, the in­dus­try has learnt that these parts are ac­tu­ally core com­po­nents and the good qual­ity parts save on re­jec­tions, re­work and also im­prove pro­duc­tiv­ity as well as do away with prob­lems such as seam slip­ping, nee­dle break­age and thread break­age. “This is what ‘value mar­ket­ing’ is all about’. Avoid­ing all old prac­tices in or­der to get more val­ues out of the in­vest­ment. Jack is geared up to do that only,” elab­o­rated Ruan.

Jimmy, Gen­eral Man­ager ( Sewing Ma­chine Divi­sion), Jack, brought forth the in­dus­try anal­y­sis to over­seas dis­trib­u­tors, based upon the macro trend, mar­ket cus­tomers, sewing in­dus­try and Jack’s own as­pects.

In a quite in­ter­est­ing step taken by the Chi­nese Gov­ern­ment way back in Novem­ber 2015, the sup­ply­side re­form was for­mally pro­posed in which the lag­gard pro­duc­tion units were made to close and it was done by bringing changes in poli­cies such as na­tional en­vi­ron­men­tal pro­tec­tion, tax col­lec­tion, il­le­gal con­struc­tion or­di­nance, small en­ter­prises clo­sure pol­icy and re­form in labour laws.

“The steps were taken to elim­i­nate small, medium and un­healthy gar­ment fac­to­ries as well as sewing equip­ment man­u­fac­tur­ing units,” pointed out Jimmy. This will lead to­wards grow­ing the mar­ket share of big en­ter­prises and that’s what Jack is look­ing to cap­i­talise on. “In 2017, we sold ap­prox­i­mately 1.42 mil­lion ma­chine sets and proper im­ple­men­ta­tion of these poli­cies will take this fig­ure to 2.20 mil­lion sets in 2018,” said Jimmy con­fi­dently. It was ob­served dur­ing his pre­sen­ta­tion that with nine R& D cen­tres, 1,000 R& D team mem­bers, and 14 of­fices in over 130 coun­tries, Jack pro­vides strong tech­ni­cal ser­vice and thus cre­ates win-win global co­op­er­a­tion op­por­tu­ni­ties for it­self.

Vic­tor Kim, Vice Gen­eral Man­ager ( In­ter­na­tional Trade De­part­ment), Jack shared a num­ber of statis­tics to prove his point as to how Jack is do­ing bet­ter than its com­peti­tors. Dur­ing Jan­uary to June 2018, Jack achieved US $ 170 mil­lion sales turnover, up 45 per cent from the same pe­riod last year, prompt­ing the best ever per­for­mance of Jack in the first half till date. Jack has fur­ther set sales tar­get of US $ 532 mil­lion in 2020 and US $ 771 mil­lion in 2021.

A good fac­tory is where peo­ple feel safe. A ro­bust net­work and the en­ter­pris­ing man­age­ment brought in good growth for Jack which will con­tinue. Vic­tor also ap­pre­ci­ated the strong sup­port and hard work of the deal­ers around the world. And, to fur­ther en­cour­age them, Jack an­nounced to give them fi­nan­cial sup­port of US $ 15 mil­lion, a 50 per cent in­crease from last year which in­cludes mar­ket­ing push and train­ing.

With con­tin­u­ous ef­forts of Jack fam­ily that in­cludes its em­ploy­ees as well as its over­seas and do­mes­tic deal­ers and sub- deal­ers, the whole Jack group is rapidly on its way to be­come the world’s num­ber one com­pany of sewing tech­nol­ogy. Ap­pre­ci­at­ing the role of agents and deal­ers for their sup­port, Vin­cent Guo, Vice Pres­i­dent of Jack Group and Vice Chair­man of Jack Sewing Ma­chine Co. Ltd. pointed out, “The agents and deal­ers are cat­a­lysts. They are our eyes and ears as they un­der­stand the pain points of cus­tomers and spend their time with them to know what their prob­lems are,” sum­marised Vin­cent.

The cer­e­mony con­cluded with award dis­tri­bu­tion in which Jack re­warded its big­gest as­set, the deal­ers, to recog­nise their ef­forts made in 2017 that helped Jack grow even big­ger. Also, Jack recog­nised the best deal­ers of Vibe­mac in In­dia and Bangladesh who es­ca­lated sales of Vibe­mac prod­ucts in these two coun­tries.

Of­fi­cial sign­ing cer­e­mony of Jack-Vibe­mac col­lab­o­ra­tion

Jack’s en­tire team which is re­spon­si­ble for the In­dian mar­ket

Beau­ti­ful sit­ting area at the shopfloor in Jack fac­tory for work­ers and pro­duc­tion peo­ple

A worker en­grossed in sewing test­ing process in­side Jack’s fac­tory

Of­fi­cial sign­ing cer­e­mony of Jack-Xuhao col­lab­o­ra­tion

Vic­tor Kim, Vice Gen­eral Man­ager (In­ter­na­tional Trade De­part­ment), Jack

Vin­cent Guo, Vice Pres­i­dent of Jack Group and Vice Chair­man of Jack Sewing Ma­chine Co. Ltd.

Jimmy, Gen­eral Man­ager (Sewing Ma­chine Divi­sion), Jack

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