A Research On The Problems Of Zhejiang Textile And Clothing Industry Upgrading

The textile and clothing industry is a traditional competitive industry of Zhejiang Province which is also one of Zhejiang’s pillar industries. It plays a key role in satisfying people’s demands, expanding exports, increasing financial revenue, absorbing spare labor and accelerating regional economic development.On the basis of the Theory of Value Chain, this paper has a survey on Zhejiang’s textile and clothing industry through studying the data of industrial economic benefits and trade, and finds that Zhejiang’s textile and clothing industry is still under the leaders’domination on the high-end value chain link. Most of the companies are subordinate and lack of market control and are striving to be the leaders with maximize profits. Using the Principal Component Analysis, it also finds that the textile and clothing industry of Zhejiang Province is gradually improved in the recent years with the improvement of industrial quality and resources utilization efficiency, which brings remarkable upgrading effects. Though the index representing the level of industry-upgrading keeps on rising, it’s still low and there still exists a big chance to improve. The slow rise and low level of industry-upgrading in a way result from the financial crisis, gradually lack of advantageous in resources, the rising cost in producing and company-running, weakness in technical innovation and lack of outstanding brands. According to the econometric analysis, it also finds that the total economic efficiency and industrial added value play a greater role in industry-upgrading of Zhejiang’s textile and clothing industry while the rate of industrial increase and total factor productivity play a comparatively smaller role. We can see from this that the industrial products-upgrading is main forms of Zhejiang’s textile and clothing industry about industry-upgrading, but the process-upgrading and functional upgrading is not obvious.In order to improve the industry-upgrading, this paper put forwards some advices from the aspects of innovation, brand cultivation and marketing to provide some suggestions on the development of the companies of Zhejiang’s textile and clothing industry.