Team Apparel Resources recently sat down with Jack – a leading sewing technology group from China – and had a freewheeling discussion on Jack’s market share, new technologies, situation in Bangladesh and future strategies. Here are
the excerpts.
AR: How is the current market situation for Jack and where are you placed amidst competition?
Jack’s market share in 2023 stood at approximately 18 per cent, showcasing significant growth on yearly basis. Particularly noteworthy is our rapid ascent in markets like Russia, Brazil and Iran, where we command over 30 per cent market share in nearly 90 per cent of countries surveyed. Impressively, our Russian market share has surged to 56 per cent this year alone. This underscores a global trend, with Jack’s average market share worldwide now at 28 per cent.
This momentum suggests a clear trajectory rather than a passing trend. It’s only a matter of time before we claim the top spot in Bangladesh as well, likely within the next two to three years. Our remarkable rise from a 6 per cent share to 18 per cent in just three to four years signals our potential for further growth and dominance in the market.
AR: Do you think the expansion of other Japanese swing technology brands into Chinese manufacturing will hinder Jack’s growth, or do you see it as a typical industry development that won’t affect Jack’s trajectory?
You know, actually, this year’s situation is even more challenging than during the pandemic. Specifically, in 2023, there was a noticeable downturn, particularly for global markets and Japanese brands. While some Japanese brands have had factories in China for over a decade, this year, some have had to close or scale back operations due to significant decreases in sales volume. However, this doesn’t concern us directly.
Another crucial factor is that many Japanese brands, in their quest to reduce manufacturing costs, have shifted towards OEM practices. Previously, these brands maintained full control over aspects like the supply chain and management systems when establishing factories in China. Now, they opt to outsource manufacturing, essentially providing their brand while the actual production is handled by Chinese firms. This trend has gained traction since last year, resulting in lower prices for their products. However, it also introduces some differences, as the manufacturing process is entirely handled by Chinese companies through OEM arrangements.
AR: During the pandemic, JACK didn’t falter; instead, it acquired the Hangar brand Yikeda and integrated it into its portfolio. How do you perceive Hangar’s position in Bangladesh’s RMG industry?
In China, our efforts have yielded significant results, with the hanger system alone boosting factories’ efficiency by at least 20 per cent compared to conventional methods. In Bangladesh, we’ve successfully implemented this system in four large factories, with many others in the pipeline. Notable names include Standard Group and Beximco in Bangladesh and internationally renowned entities like Classic Fashion in Jordan and Style Textile in Pakistan amongst others.
This expansive collaboration has allowed us to understand our customers’ needs comprehensively, leading to the development of a range of systems aimed at enhancing garment manufacturing processes from procurement to packaging. These systems also encompass factory management tools such as WMS and EMS software. Our focus on meeting the exacting requirements of our customers has led to unique offerings, such as our exclusive lockstitch technology, a result of a multi-year partnership with a major
industry player.
AR: At a time when wages have drastically increased in Bangladesh, how are you supporting the industry with new technologies?
All our automation initiatives are a direct response to market demands. Particularly in Bangladesh, where salaries have surged by over 50 per cent last year, placing immense pressure on garment factory owners. In light of this, we’re committed to furthering our efforts to encourage the adoption of automation amongst customers with the technologies that we have recently developed for Vibemac and other brands.
We’ve recently introduced M9, our pattern sewer boasting a 360° head rotation – a feature that sets it apart. While it was initially unveiled in 2023, we’ve made significant strides with its full-scale launch in 2024. Another notable addition is the M5, which shares the M9’s advanced capabilities.
This year, we have also unveiled Jack’s J5 pocket welting machine. The J5 has swiftly become an essential tool for factory owners worldwide due to its high efficiency output. It can effortlessly handle the creation of various types of pockets, from jackets to blazers and ruffle pockets, making it a versatile addition to any factory’s equipment lineup.
Our primary goal remains to raise awareness amongst factory owners about the benefits of automation and digitalisation, ultimately enhancing efficiency and reducing reliance on human resources.
