Research On The Game And Upgrading Of Zhejiang Clothing Industrial Cluster

Global value chain (GVC) is a kind of new theory, which integrates macro-and microeconomic perspectives, and provides a new perspective to analysis again the industrial linkage and upgrading of Zhejiang apparel industrial cluster under the globalization. The framework of apparel upgrading is built by applying GVC in this research. Both textile and clothing trade frictions in country levels and corporate social responsibility in apparel industrial cluster are analyzed by game theory as research tool. The upgrading paths of exogenous apparel industrial cluster as Shengzhou Necktie are compared with endogenous cluster as Tongxiang Woolen Sweater by use of field research and mathematical statistics methods.The following aspects are included in this research:(1) The developing character, forming basis and facing question are investigated by investigating the current situation of Zhejiang clothing industrial cluster. From the aspects of brand number of Chinese clothing, the number of well-known trademarks and clothing brand value, the competitive situation of Zhejiang clothing industrial cluster are analysed. The formation, development and trend of Shengzhou Necktie and Tongxiang Woolen Sweater are used as the study cases.(2) The driving mechanism and governance model are also studied on the basis of GVC theory. By analyzing driving mechanism and governance model of Shengzhou Necktie and Tongxiang Woolen Sweater and governance of Zhejiang clothing industrial cluster, the driving power for both models can be concluded. There are different aspects in upgrading of apparel industrial cluster in GVC. First, apparel industry is typical buyer-driven value chain. In this kind of chain, the buyer, international brand or brand marketer is governor. Secondly, the different governance model of GVC should follow different apparel upgrading path. Thirdly, the upgrading paths of apparel industrial cluster can be divided into Process Upgrading, Product Upgrading, Functional Upgrading and Inter-sectoral Upgrading.(3) The game theory is applied to analyze the outside and inside of Zhejiang clothing industrial cluster. The game relation among countries at the global levels, the game relation between suppliers and buyers, the game relation among enterprises in the clothing industrial cluster are included in this research. This research focuses on the game about country clothing trading policies, Bargain model or offer-counteroffer about governor. The situation of Zhejiang clothing industrial cluster, the game relation among Zhejiang clothing industrial cluster, and the game relation about corporate social responsibility of Zhejiang clothing industrial cluster are fully discussed to explore the upgrading directions and paths of Zhejiang clothing industrial cluster.(4)GVC is applied to analyze upgrading of Zhejiang apparel industrial cluster. The exogenous apparel industrial cluster as Shengzhou Necktie and endogenous cluster as Tongxiang Woolen Sweater are investigates. Their different features are discussed in the terms of causes, industrial structures, the integrities of the value chain and strategic fragments, knowledge learning and mobile, ability to resist risks. It has been found that two different industrial clusters face different challenges. The keys of them are the methods to insert GVC for endogenous apparel industrial cluster, learning by doing, and promoting the additional value along GVC. For exogenous apparel industrial cluster, it is the most important to get out of governor of GVC and realize functional upgrading as result of R&D, design, brand and sales controlled by buyer. Therefore, Functional upgrading is easy to realize, but Process upgrading and Product upgrading are fairly difficult for endogenous apparel industrial cluster. On the contrary, Process upgrading and Product upgrading are easy because of buyer governance to diffuse codified knowledge. The Functional upgrading is difficult for exogenous apparel industrial cluster because core strategy as R&D and brand are limited by buyer. Consequently, government should take different measures for different apparel industrial cluster.(5)According to the theory of industrial cluster, Shengzhou Necktie and Tongxiang Woolen Sweater are applied as the samples of case study of Zhejiang apparel industrial cluster. The evolution of formation and causes of the industry cluster are discussed. On the basis of industrial clusters investigation, the upgrading paths of Zhejiang apparel industrial cluster are suggested combined with the theory of GVC. The theoretical basis of this research can be applied as the references for local government to make out industrial policies and to improve the textile and apparel industries.