Research On Transformation And Upgrading Of Dongguan Clothing Industry

Although there are lots of competitive advantages, the development of Dongguan apparel industry encountered bottleneck with the rising prices of raw materials and sharply labor cost risen, the problem showed as lower highlights of industry value chain, and weaker innovation ability of enterprises. Nowadays, domestic clothing brand competition is more and more intense, especially the fast grow up of coastal cities around pearl river economy, which is diminishing the strong comparative advantage of "Dongguan clothing". In recent years, Dongguan carried out the development strategy so-called "double transformation" that transforming resources leading to innovation and economic and, transforming primary social urbanization to advanced urbanization. Focusing on the overall comprehensive strengthen in innovation level is a new breakthrough of Dongguan clothing which based on their own,. Enterprises’transformation and upgrading is becoming its development way.In this background, this article is starting from the present situation and problems existing in the development of Dongguan clothing enterprises, combining the theory of industrial value, enterprise competitive advantage theory, enterprise life cycle theory and other related theory, so that trying to study the path of the transformation and upgrading of garment enterprises in Dongguan model problem.Through the study of the literature review of domestic and foreign research present situation, the article found that the existing research mainly focuses on the concept of transformation and upgrading of enterprises, motivation, influence factors, path, pattern, the global value chain, the risk of transformation and upgrading, etc., most studies focused on the small and medium-sized private enterprises, but less researching about clothing business transformation and upgrading. This article adopted the "literature research-case analysis-case summary" research methods to explore the path model of transformation and upgrading in Dongguan clothing enterprises, which can provide a reference for the transformation and upgrading of value in clothing enterprises.At the beginning, this article analyzes the current development situation of garment enterprises in Dongguan, pointed out problems existing in the process of its development, then selected the typical representative of garment enterprises in Dongguan, Dongguan Yishion group co., LTD., to make case analysis, basing on the smile curve theory and the perspective of global value chain theory, to analyze the path selection of transformation and upgrading. It was pointed out that the transformation and upgrading of pure group mode for innovation and brand building in Yishion group is useful, and sum up the successful experience of pure group transformation and upgrading. Further, the article summarizes the business transformation and upgrading of the direction of Dongguan clothing is localization, clustering and high-end. It found the business transformation and upgrading path model the Dongguan clothing is upgrading the main body, industry, and value chain. Finally, the countermeasures and measures to transformation and upgrading of Dongguan clothing business are put forward from the view of enterprise, government and industry associations.