Research Of Industrial Upgrading Strategy Of Shenmei Apparel Company

Since the reform has been taken in1978, apparel manufacturing has entered globalmarket successfully by OEM industry mode under the comparative advantage of laborforce and resources in our country. However with the dramatic change of economicenvironment, the competition becomes increasing fierce. The comparative advantage onquantity of labor force and resources has been declining, therefore the higher labor costand material cost pushed apparel manufacturing to face grave challenges. Industryupgrading is the hot topic in apparel industry and also is problem which Shenmei has toresolve.This paper gives the analysis of the macro environment, industry environment andinternal environment by the tools of PEST, five forces model and value chain, and thencomes up with the route and orientation of industrial upgrading strategy through SWOTanalysis. After that, this paper gives the planning of industrial upgrading strategy whichincludes two steps. At the first, based on the dynamic development of comparativeadvantage, quantity advantage is upgraded to quality advantage through technologicalprogress and human resources mechanism. Secondly, comparative advantage is upgradedto competitive advantage through brand and innovation.Finally, this paper gives an introduction of implementation status and conclusion ofindustrial upgrading in Shenmei. Sincerely hope this research would offer a few referencefor the industrial upgrading of apparel manufacturing.