Research On Obstacle Factors&Revitalization Countermeasures For The Silk Industry In Suzhou

The silk industry of Suzhou occupies an important position in the history ofChina’s silk. In1990s, with the adjustment of China’s economic structure, the silkindustry in Suzhou has serious problems, many enterprises have closed, transferred toother production or have been auctioned. After the financial crisis in2008, the situationis especially more serious for those enterprises in silk industry whose productsaccounted for the biggest part of China’s exports. Therefore, in order to revitalize thesilk industry in Suzhou and make sure its sustainable development, it’s really necessaryand urgent to analyze and study the obstacle factors step by step from reality.Based on the analysis of history and current status of the silk industry in Suzhou,from aspects of market demands, supply of raw materials, labor force, currencyexchange rates, industry management, brand influence, trade barriers, corporatefinancing, science and technology innovation, this paper analyzed obstacle factors of thedevelopment of silk industry in Suzhou. Several factors that affected the development ofsilk industry has been found, for example, the shrinking international market demandafter global recession, lack of development of domestic market, excessive fluctuationsin raw material prices, the instability of exchange rate, the increase of labor costs, lackof competitive industrial chain, lack of an effective industrial policy support, tradebarriers and so on.In this paper, by using the analysis method of principal component factor, the mainobstacle factors have been discovered, including difficulties of corporate financing,weak impact of brand, lack of development in domestic market, lack of effectivemanagement of industry, lack of labor force and competitive industrial chain. It also analyzed the experience of industrial development in other developed regions in silkindustry and found useful experience. Based on these experiences, constructivecountermeasures and suggestions have been proposed to revitalize the silk industry inSuzhou, it was indicated that, in order to maintain the sustainable growth of silkindustry in Suzhou, we have to take measures from several aspects, such as improvingenterprises’ financing capacity by improving financing environment, emphasizing brandcultivation to increase brand influence, developing domestic market to expand domesticmarket share, improving industrial management by creating healthy and orderlyindustrial environment, encouraging technological innovation to promote industrialprogress, enhancing the cooperation between agriculture and industry to developefficient and competitive silk industrial chain.The conclusion of this research will be helpful to promote the sustainabledevelopment of the silk industry in Suzhou.