Study Of The Chinese Garment Industry Value Chain Transformation

With the development of economic globalization, especially with China's accession to WTO, it comes to a very crucial time for Chinese apparels companies to conduct a transformation strategy in value chain, from manufacture to R&D and marketing. This thesis systematically analyzes the history and current circumstances of Chinese apparels companies in conjunction with three typical cases of transformation in value chain made by Chinese apparels companies, and makes some suggestions to all China's apparels firms .This paper is consisted of three chapters. Chapter One briefly depicts the evolution of Chinese apparels industry, its current situation, and the great impacts of China's entry into WTO. Although since 1994, China becomes the largest country of import & export apparels business, and is honored "world apparels manufacture centre', there're great disadvantages of Chinese apparels companies, such as lack of world famous brands, decreasing export unit price, facing fierce competition of other countries, and increasing export barriers, etc..Chapter Two states the industrial structure theory and value chain theory advercated by professor Mr. Michael E. Porter about how to build sustainable competitive advantages. Specifically, such theoretical concepts as competitive strategy, value chain, and diamond theory as well as the application of these theories are dealt with..Chapter Three analyzes three company cases including Younger, Shanshan, and Meitesbangwei, all of which are well-known apparels firms in China, and all of which have performed a successful transformation strategy on their value chains. The author puts forward some suggestions to China's apparels firms about how to accomplish such transformational strategy just as follows: 1) work must be done on one principle, that is, it is of paramount importance for Chinese apparels companies to build a brand name; 2) efforts must be given for recruitment and training of outstanding apparels designers; 3) it should emphasize on how to set up sales channels and to operate marketing terminals; 4) government department and agencies ought to provide strong and ample support to Chinese apparels companies, enabling them to establish globally competitive advantages.