A Research On The Innovation And Transformation Of Specialized Market

Zhejiang Province has witnessed rapid economic growth and the great development of the private economy. The growth of specialized market which is characterized as "small commodities, large market; little shops, big network" is the most shinning pearl on the crown of Zhejiang private economy without any doubt. Yiwu specialized market has been prospering in the past thirty years despite different queries arisen by many scholars. This thesis discussed and analyzed the innovation and transformation of sales mode, among various factors that may lead to the success of Yiwu specialized market, from the perspective of new institutional economics and new classical economics.The author has chosen the innovation and transformation of sales mode as the main perspective, after a comparative analysis on some declining specialized markets and Yiwu specialized market. This thesis holds that the specialized markets' weakening function of reducing transaction cost has resulted in the vertical integration of sales channel, which is the main cause of Yiwu specialized market's innovation and transformation of sales mode. The author has also built "sales-channel-choosing model of enterprise", given the relation between sales-channel-choosing and enterprise scale, and as a result, pointed out the optimal choice of specialized markets.The reason that Yiwu specialized market has been keeping its prosperity is the incessant innovation and transformation by the market itself. This thesis has drawn a conclusion that the transformation from a totally-shared sales channel to the symbiosis of shared sales channel and sales vertical integration is the optimal choice of Yiwu specialized market, when many producers have chosen vertically integrated their sales channels. In the end, the author believed that specialized markets will not fade away in a certain period on condition that they keep a mind of innovation and transformation.