TK Clothing Foreign Trade Company Development Strategy Research

Exports of textiles and clothing had always occupied an important position in the national economy of China.The apparel industry in China was currently located in the low-end of the global value chain.While the high value-added sectors belonged to those international clothing brand enterprise,for example the R&D and after sales service.As the continuous rising of RMB exchange rate and domestic labor costs,the clothing trade enterprises in China was facing serious challenges.Since the export of textile and fashion after quota was cancelled in 2005,the clothing foreign trade industry tended to be saturated and full of stiff competition.Under such severe circumstances,part of clothing trade enterprises find the way of transformation and upgrading of enterprises.They firstly removed the "purchasing and export" business model,and then extended to the upper section of the industrial chain by integrating sectors of production and the raw material development,at last they transformed into supply chain management enterprise with competitive advantage and excess profits.TK company was a traditional State-owned foreign trade enterprise.In the case of loss of trade monopoly competitive advantage,TK company had successfully transformed into supply chain manager by diversified business models by quickly reacting and adjusting to the changing of market environment,such as setting up its own garment factory,professional clothing design and proofing department,raw material development department and developing domestic and foreign markets at the same time and so on.However,with the transformation and upgrading of the domestic garment industry,the further rising of the labor costs,and the universal of this new business model of apparel supply chain management,in the near future TK company is bound to face fierce competition again.As the TK company's transformation path was from the trade link to the production link,it does not have the products with low price brought from the effect of the scale of production capacity compared with the clothing supply chain management enterprise which transformed from traditional manufacturing enterprises,thus TK company will lose its competitive advantage and excess profits.In this case,TK company how to make full use of its resources and capabilities and further expand them through adjustment and transformation,or become to be a clothing brand enterprise by changing business model and value chain positioning so as to form its core competitiveness of enterprises which is impossibility to be imitated?This is the focus of this paper.Based on this background,this paper will firstly deeply analyze the current macro market environment and industrial environment of the Apparel Foreign Trading Industry,and take TK company as a case analysis of the object.On the basis of supply chain management theory,enterprise core competence theory and brand value theory and so on,after making analysis on SWOT and the diversified business model of TK company,this paper puts forward the development strategy of TK company in different periods in the future.In the short term,TK company should stable development of existing business models and continue to expand the competitive advantage.In the medium term,TK company must become to be the clothing original design manufacturer by improving the design and quality of the product.In the long term,through the development of independent clothing brand and regional marketing,TK company has the capacity to develop its own clothing brand business and ultimately become an international fashion brand,and strategy implementation measures and the strategy implementation guarantee will be given next.