Research On Comparative Advantage Of Chinese Sporting Goods Manufacturing Industry

Chinese sporting manufacturing industry has developed rapidly since China’s reform and opening up. Based on theory of comparative advantage, mainly using literature, expert interviews, and historical analysis methods, this paper conducts a thorough research on the comparative advantage of Chinese sporting goods manufacturing industry before and after international financial crises in2008. The conclusions are drawn as the following:1. Before the2008financial crisis, the comparative advantage of Chinese sporting goods manufacturing industry is mainly reflected on low land costs, low labor costs, as well as supports of government policy, which created a condition for China to receive a large number of international sporting goods production orders and develop into a large sporting goods manufacturing industry. At the same time, our local sporting goods manufacturing companies have had a well development.2. After the2008financial crisis, the comparative advantage of Chinese sporting goods manufacturing industry have a great change that is mainly on land, labor, raw materials and transportation costs increased significantly. Accordingly, some international sporting goods production companies transferred their orders from China to countries with lower labor and land costs. Domestic sporting goods companies were also inclined to establish new plants on Midwest China to offset the pressure of rising costs.3. After the financial crisis, China’s sporting goods market demand has undergone dramatic changes. The fact that sporting goods industry growth rate is dropping reflected directly on the inventory that can not be sold. Discount promotions have become the main way to solve the inventory problem. These changes are mainly caused by two aspects:First, corporate oversupply; Second, lack of consumer demand. From enterprise behavior aspect, companies did not have clear product positioning, and lacked product differentiation, independent innovation and brand building. From consumer behavior aspect, fitness awareness and fitness atmosphere were weak.According to the findings, the basic ideas this paper put forward for the future development of China’s sporting goods industry are:1. Since China’s labor cost advantage will continue to maintain a certain period of time, the sporting goods industry should continue to use this labor cost advantage and increase intensity of independent innovation, to enhance the core competitiveness of China’s sporting goods industry.2. Based on the role of market mechanism, the sporting goods industry should finish product upgrading and structural optimization through the survival of the fittest. The sporting goods industry should pay attention to product quality, accurate positioning of the market and market segments, improve the marketing strategy and after-sales service so as to enhance brand image.3. Government should enhance guidance and services. Since the majority of enterprises are small or medium, the government should simplify approval process and improve service sense. Government should also increase supports of small and medium-sized sporting goods companies in finance, taxation, investment and financing, to make China’s sporting goods industry bigger and stronger.