Study On Competitiveness Of Chinese Footwear Industry Based On Industrial Organization Theory

Footwear industry is of great importance in the national economy and light industry economy,with the total employment exceeded 5 million people and the trade surplus accounts for 10% of the country's total trade surplus.As Chinese economy is entering the period of New Normal,Chinese footwear industry is also showing the similar trend,with the growth rate of production and consumption slowed,the exports declined,but the rate of imports continues to go up sharply.Imports have largely substituted the domestic supply in domestic consumption when meeting the consumer needs.Green development has showed significant improvement in footwear industry.The whole industry is facing much challenge today.Green development is introduced into SCP paradigm and G-SCP paradigm is put forward.The market structure,conduct and performance are analyzed based on this theory.Market concentration,demand,barriers and green development are analyzed in market structure part,Technology innovation,cost control,other conducts and green development are analyzed in market conduct part,and basic economic number of the industry,comprehensive market share index and comprehensive revealed compared advantage index,and green performance are all analyzed in market performance part.Market concentration,R&D inputs,total employment,assets,loans,sales revenues,sales cost,management expenses,financial costs and interests cost are put into four kinds,i.e.,employment,labor cost,operating costs and capital costs.These factors are input factors.Profit,comprehensive revealed compared advantage index and green performance index are treated as output factors.The input and output efficiency are then analyzed accordingly using Frontier analysis method.At the same time,footwear industry is compared with leather industry,leather industry sub-sectors,and footwear industry of different areas,different scale,and different ownership are then analyzed.Efficiency is taken as the explanatory variable,monopoly degree,regional concentration degree,export market concentration degree,R&D input intensity and patent authorization amount are taken as explanatory variable,GDP growth rate and fixed assets investment growth rate are selected as the core variables.Tobit model is used to further analyze the factors influencing Chinese footwear industry competitiveness.The conclusion shows that the theory of industrial organization and the revised G-SCP paradigm are fully applicable to the analysis of footwear industry competitiveness.From the perspective of market structure,the market concentration of China's footwear industry is relatively low from various perspectives.While promoting the upgrading and development of the industry,green development may enhance the barriers of the industry and thus enhance the market concentration.The potential of footwear demand in the domestic consumer market is huge,and green development will bring new consumption demand and promotes the further expansion of domestic consumer market.From the perspective of market conduct,technological innovation represented by R&D investment and patents has achieved positive results.The industrial transfer from home to abroad caused by rapid rise of factor costs,especially labor costs,and structural labor shortage have become an important market behavior of China's footwear industry.On the one hand,it promotes the level of industry automation.Upgrading has improved the quality of industrial development.On the other hand,the transfer of enterprises abroad has had a direct negative impact on the international market share of China's footwear industry.On the other hand,the gradient transfer of enterprises to the central and western regions of China has created a number of new footwear industry clusters,and provided improvement of competitiveness.At the same time,green development and various industrial policies are changing the market behavior of the footwear industry,especially in green development.For market performance,China's footwear industry still has great advantages compared with the major international competitors.Six indicators,including the quantity and amount of footwear exports,imports and domestic consumption,are integrated into the analysis model of the comprehensive international market share.It is found that the growth rate of comprehensive market share index shows a downward trend,with a significant decline in 2015.China's footwear industry is at the time point of power conversion between the old and the new.Considering export,import and domestic consumption factors,the comprehensive revealed comparative advantage index model shows that the revealed comparative advantage index,the revealed comparative advantage index and the comprehensive revealed comparative advantage index of Chinese footwear industry all reached the maximum in 2011,and then began to decline continuously.Among them,the rate of decline of the revealed comparative advantage index is the fastest,and the decline of the revealed comparative advantage index is the slowest.However,compared with Vietnam and Italy,China's footwear industry showed the slowest decline in comprehensive comparative advantage.When comparing the competitiveness of China's footwear industry with that of other countries,we should not only look at the absolute value of comprehensive revealed comparative advantage,but also consider its changes comprehensively from the perspective of dynamic change.The green development performance of footwear industry has made some progress,with the unit energy consumption,waste air production,emission and the green development index continue to go downwards.The competitiveness of China's footwear industry shows a downward trend and then upward trend,but the efficiency values are basically not effective.By using production frontier analysis method,the efficiency values of Chinese footwear industry as a whole,different sub-industries,different regions,different scales and different holding groups were calculated.It was found that the technical efficiency,pure technical efficiency and scale efficiency of Chinese footwear industry showed the same trend,that is,the overall development trend of V-shaped trend from 2010 to 2017,and rose year by year after 2013.In terms of pure technical efficiency,the pure technical efficiency of plastic shoes has been effective all the year round,and the other sub-industries have basically shown similar trends.In terms of scale efficiency,textile fabrics shoes have been running at a high level,rubber shoes have basically shown an upward trend,and plastic shoes have a fast upgrading speed.From the average technical efficiency,textile shoes are the highest,followed by leather shoes,rubber shoes are the lowest.The scale efficiency of footwear industry in different regions differs greatly,and the efficiency in the central region is obviously higher than that in the eastern and Western regions;the technical efficiency,pure technical efficiency and scale efficiency of large enterprises are effective,while the efficiency of medium-sized enterprises and small enterprises are ineffective;the technical efficiency of state-owned enterprises is the highest,and the scale efficiency of Hong Kong,Macao and Taiwan business holding enterprises is the highest.Private enterprises account for the largest proportion in the footwear industry,but the current technical efficiency is the lowest,and there is a large space for future efficiency improvement.Different sub-sectors,regions,enterprise scales and holding types,and market concentration,regional concentration,R&D investment intensity,patent licensing,GDP growth and fixed assets investment growth conclude from Tobit model all have different degrees of positive correlation to enhance the competitiveness of the footwear industry.These aspects are the focus of attention to enhance the competitiveness of the shoe industry.The domestic market is closely related to the promotion of competitiveness.It can be found that export and domestic consumption are positive indicators for competitiveness improvement.Import is a negative indicator.After China's shoe industry has entered a new stage,the shortage of new domestic supply and the high-speed growth of imports in a long-term adverse situation have squeezed the supply of domestic shoe industry to a certain extent,resulting in the continuous decline of China's comprehensive international market share,comprehensive revealed comparative advantage and overall competitiveness of the shoe industry.However,due to the rapid growth of the domestic consumer market,the growth rate of domestic consumption and international market share in terms of quantity and amount is significantly higher than that of export share.In fact,the domestic consumer market has effectively slowed down the declining trend of the overall share and international competitiveness of China's footwear industry.Facing the future,the new increase brought by domestic consumption will become the biggest market factor for the improvement of the competitiveness of the footwear industry.Green development will become a high-quality incremental space to enhance competitiveness.Green development optimizes market structure such as concentration,changes market conduct such as technological innovation,and improves market performance through the direct improvement of green development performance,as well as the optimization of factors affecting competitiveness such as market structure and market behavior,green development actively promotes the competitiveness of the shoe industry.At present,the footwear industry's green development foundation is still weak,and many problems need to be solved urgently.However,the shortcomings in these areas will become an important incremental space for the future industry's competitiveness and sustainable development.