The Empirical Analysis Of Market Structure, Resident Income And Product Price Based On Chinese Household Chemical Products Industry

The Household Chemical Products industry is one of the earliest industries belonging to the market economy in China. 21cn, as people's consciousness of personal skin-care arises and more attention is paid to the market subdivision, more and more manufacturers go into the industry, and the competition is intensified. On the whole, international brands are penetrating from high-priced market into the low-priced, local ones are defending the medium-priced and low-priced market, and strong brands of other industries are spending no efforts to find a vacancy.The theory of industrial organization is applied to calculate market concentration and analyze the evolvement. Then, Bain's theory about barriers to entry and Porter's five-force framework in the strategic management field is employed to explain barriers to entry. This paper constructs a model about Chinese Household Chemical Products industry by exploring AIDS (Almost Ideal Demand System) in the theory of consumer demand. Take resident expenditure and market price as independent variables, and market share as dependent variable, the change of market share and elasticity of different brands in different commodities are analyzed.In the Household Chemical Products industry of China, the city is high concentration oligopoly, however, the rural is low concentration oligopoly, even likes atom. Finally, we get the conclusion that the relationship between expenditure and non-compensated own price elasticity and market share is almost on the opposite side.Therefore, local brands should take the advantage of lower price and rural market and build up own brands in order to win an advantageous status which can stand against international brands, and push the market structure evolve from oligopoly to atom.