From Trade Intermediaries To Supply Chain Management, Business Strategy Changes

As a product of the planned economy system, the survival of state-owned foreign-trade garment enterprises are based on the moderate monopoly of the foreign trade rights and the administrative distribution of export quota of textiles and garments. With the decentralization of the foreign trade rights, China's entry into WTO, and the cancellation of the quota restriction in the world textiles and garments trade, the foreign trade garment industry has transformed from a monopolized industry to a common one. The disadvantages of the state-owned foreign-trade garment enterprises are exposed to view as they cease to enjoy the former preferential policies. Their survival and development are challenged in the face of cruel market competitions.A major cause to this problem is their single management model (the "Purchase-Export" model) that restricts their role to be an export shipper. It is difficult for them to form core competence by gaining income from purchase and sale price differentials. As a result, while the market competitions focus on the price and quantity of products, the price and the profits become even lower than before.Through analyzing the market environment of the state-owned foreign-trade garment enterprises, the empirical analysis of Beijing Garments...