Study On Expansion Route Of The Wood Flooring Industrial Chain In The Yangtze River Delta Based On Resource Constraints

China is the world’s forest products production and trade power, and the flooring industryis one of the important forestry industries. With China’s sustained and rapid economic growthand the continuous improvement of the living standards of residents, wooden flooring isbecoming an important choice for home and shop floor decoration, making the market demandof wood flooring upward. With the continuous advance of China’s urbanization process and thedevelopment of the real estate industry, the market space of wood flooring products will be verybroad in the future, and wood flooring industry will become more important in the developmentof the national economy and the international wood flooring market.The Yangtze River Delta is the area with China’s most concentrated brands and the mostsignificant cluster effect of flooring industry. The flooring production in the area accounts forforty percent of the country, but there are a series of questions, just like lack of timber resources,serious product homogeneity, patchy product quality, lack of well-known international brandsand so on. In the context of weak recovery of the world economic, appreciation of the RMB,deterioration of international trade, strict regulation of the domestic real estate and high pricesof the various factors of production, the development of wood flooring industry is a littlesluggish with increasing competition. The whole industry is transferring from competition inproducts and prices to the resources and industrial chain. To accelerate the restructuring of theindustry chain, expand industry chain and to solve all kinds of resource constraints, has becomethe inevitable choice of the wood flooring industry to adapt to environmental change andenhance industrial competitiveness.This article has made systematical study on the resource constraints and the solutions ofexpansion of industrial chain of the wood flooring industry in the Yangtze River Delta.The PEST model was used to make comprehensive analysis of the macro-environment ofthe development of the wood flooring industry in China and the Yangtze River Delta regionfrom the perspectives of policy, economic, social and technology. Meanwhile, the Porter’s "fiveforces" model was improved based on “structural hole” theory and then was used to analyze thecompetition environment of wood flooring industry, in order to make wood flooringmanufacturing enterprises to get competitive advantage of structural autonomy and obtaininformation and control gains from the structural hole of other participants.The wood floor belongs to resource-oriented product, so the key constraint of expansion ofwood flooring industry chain is whether wood resource can meet the demand for raw materialof the development of flooring industry. Forest cultivation industry has a decisive role in thesupply of raw materials to ensure long-term stable development of the wood flooring industry,and the forest plantation has huge resource value in the wood flooring industry chain. The comparative study on differences in the efficiency of resource use and profit margins should bemade to optimize the type and structure of the wood flooring products.The manufacture and production process is the foundation of building added value of thewood flooring product. The location entropy theory was used in this article to evaluate clusterefficiency of the wood flooring industry chain in the Yangtze River Delta. The results showedthat the cluster efficiency of the wood flooring industry in Shanghai and Zhejiang attributed toengineered wood flooring and real wood flooring, while in Jiangsu it attributed to laminatedflooring and engineered wood flooring. Based on the Cobb-Dauglas function calculation, theresults show that the development of the wood flooring industry in the Yangtze River Delta is inincreasing returns to scale phase with significant regional cluster effect, and the industrialoutput corresponding increase with the forest resources. Meanwhile, there is urgent need to tapthe potential of industrial development by improving the quality of workers and promotingtechnological innovation.The marketing aspect of the wood flooring industrial chain has greater profit margins andvalue-added potential. The wood flooring industry in Yangtze River Delta is transferring fromproduct consumption to brand consumption. The industrial cluster of the wood flooring industryin Yangtze River Delta has an important role in brand and value enhancement. The market ofthe flooring in the first-tier cities faces increased competition and saturated capacity, so themarkets in second or third-tier cities and towns have greater profit margins. Meanwhile, thedepth development of the wood flooring industrial chain has new requirements for resources,brands and channels.In summary, in order to upgrade and restructure the wood flooring industrial chain in theYangtze River Delta, multiple policies should be implemented as follow, to use domestic forestresources, to increase construction force of commercial forest, to establish a wide range ofinvestment and financing channels for raw material forest, to promote insurance system for rawmaterial forest, to develop wood flooring products with high utilization, to strengthentechnological innovation, to improve the construction of self-intellectual property rights andproprietary technology system, to strengthen the transformation of scientific and technologicalachievements, to create good conditions for talent introduction and development, to createdistinctive corporate culture, to use leading technology standardization strategy and multi-brandstrategy, to respond actively to international trade barriers and to make efforts to developdomestic new markets.