Research On The International Competitiveness And Influencing Factors Of Small Home Appliance Industry In China

China has become the most rapidly growing market of small home appliance industry because of its huge population base and the steadily rising resident’s income. Especially since the financial crisis in 2008, the development of traditional large home appliance has encountered a cold wave, while the export of small home appliance products continued to keep rising. Recent years the volume of small home appliance has accounted for more than half of China’s total home appliance export share. Small home appliance industry has been the main growth point of home appliance market. Although our country is a big country in terms of small home appliance production, most of the products concentrate on the bottom of industry chain, with low price and profit. Nowadays low prices has become a distinct label of China’s small home appliance industry. Under the influence of negative factors such as the appreciation of the RMB, the rising of raw material prices and the appearance of green trade barriers, it is difficult for small home appliance industry to continue the cheap strategy.Firstly, this paper presented the theoretical basis of industrial international competitiveness from three sides, which are traditional international trade theory, modern international trade theory and Porter’s national competitive advantage theory. On the basis of theoretical research, this paper gives the definition and scope of small home appliance products, then gives a general description of the current export status of small home appliance products in our country.After that the author use trade data to calculate a series of revealed indicators to measure the international competitiveness of small home appliance industry in China. And then we compared them with the world’s leading exporters of small home appliance industry to make further comparative analysis. Finally variation coefficient method is applied to the above indicators for comprehensive evaluation. The conclusion is China’s small home appliance industry has a strong competitive advantage in the world, but the development speed is slowing down, the competitiveness exists potential problems.The followed part chooses Porter’s Diamond Model as the theoretical basis to select the factors which influence the international competitiveness of small home appliance industry. Then an econometric model of China’s small home appliance industry is built for empiric analysis. Research results show that four factors (per capita GDP, small home appliance industry workers, export prices of small home appliance products, R&D expenditure) have a significant impact on international competitiveness of China’s small home appliance industry. Among these factors, the influence of per capita GDP is biggest, its time is also the longest.Finally, based on the above analysis, the author made some relevant suggestions including concerns about increase per capita income to stimulate consumption demand, pay attention to personnel training to improve staff quality, ensure the product quality and increase the added value, increase investment in research and development.