Product Differentiation And The Expansion Of China Vegetable Export

At present, the scale of China vegetable export is continually expanding on thewhole. According to the statistics of UN statistical department, China has become theworld fifth vegetable export country. But there are still many problems facing Chinavegetable export, which mainly is that China vegetable export products cannot wellkeep in touch with the world market demand on the aspect of product horizontaldifferentiation and vertical differentiation. It will cause negative effects on Chinavegetable export if they are not resolved well.With the development of economy, in the international market, on the one hand, therequirement for the quality of vegetable export product is elevating, on the other hand,the diversified demand for them is increasing, and the vegetable trade between thedeveloped countries is mostly intra-industry trade, which provides both opportunitiesand challenges for the expansion of Chinese vegetable export. It's necessary for Chinato carry out product differentiation strategy to grasp opportunities and take challenges.This strategy consists of vertical differentiation and horizontal differentiation. It willsatisfy not only the demand for low end vegetable product, but the high end to take thestrategy of vertical differentiation. At the same time, the vegetable import market `sdiversified demand for vegetable product will be satisfied by carrying out horizontaldifferentiation strategy. This thesis shows the effect of product differentiation on theexpansion of China vegetable export in both theory and practice through introducing aCournot duopoly model concerning product differentiation and an empirical regressionequation. The constrained factors for achieving the differentiation of China vegetableexport are the scattered operation of China vegetable industry and the absence of socialservice system. To attain the aim of vegetable product differentiation and promoting theexpansion of China vegetable export, it's necessary for China to take the followingmeasures. First, we should achieve the scale operation of vegetable industry. Second,we should adjust the ratio of product quality to price according to the practicalcondition of import countries. Third, we can put emphasis on Chinese standardconstruction. At last, we can encourage deep process of vegetable product in China toextend domestic value chain of vegetable export product. The description above shows that the analysis of this thesis will be of greatimportance to the expanding of China vegetable export in world market.