Tongxiang Sweater Upgrade Study Of Industrial Cluster

Under the background of the economic globalization, the Local Industrial Cluster, taking the network organization of the industry as one of the characteristics, successfully deduced a new pattern of the district economic development. Global Value Chain is a novel theory with which we can fully resurvey the globally economic structure and development to analyze global industry relations and industry updating issues by combining two visual angles of microcosmic and macrocosmic. The theory provides us with a system platform onto which we can resurvey the competitive ability and the improved method of the industry.This paper takes Tongxiang sweater industrial cluster as a study area. Firstly, global value chain theory, embedding global value chain model and Space Grading System are represented by theoretic research, and reference literature is also reviewed. Followed by field visits of Tongxiang sweater industry cluster, the domestic market expansion and foreign market penetration of Tongxiang sweater industry is analyzed from development course to status quo and features, as well as the problem under the background of global integration and economic crisis.For Tongxiang sweater industrial cluster, By analyzing industry clusters related to the manufacturing industry cluster, exogenous production knowledge industry clusters, endogenous production-oriented industrial clusters and endogenous mixed industrial clusters, as well as the mutual promoting of professional market and industrial clusters, the character of Tongxiang sweater industrial cluster is obtained, it is the endogenous and exogenous production of mixed-type knowledge industry clusters. Their own need both embedded in global value chains, but also in the most low-end value chain, there is a great need to upgrade. Further, with Tongxiang sweater chain layout analysis, combining with Tongxiang sweater import and export trade industry cluster approach to arrive Tongxiang sweater clusters embedded in global value chains should be based on cross-border buyers in the professional market, direct purchase and clusters of enterprises market export two kinds of integration models of governance. Therefore, the path of Tongxiang sweater industrial cluster upgrading is as follows: embedding in high value-added aspect in the space hierarchy of the global value chain, the building of regional brands and brand internationalization. Among them, the first one is put emphasis in the article. An empirical analysis of the embedded space for the global value chain hierarchy is conducted. Shanghai, as known as a domestic first-class consumption place and fashion forward, leading the end-consumer market. Tongxiang, in advantage of geography, should make full use of promoting of Shanghai's economic. But with the analysis of Solow's C-D production function model, it is found that Tongxiang sweater industry clusters are weak in economic radiation and mechanism of action of Shanghai, and occupy low position of added value in the space hierarchy of value chain. The influence on low-value-added industry clusters of occupying the high value-added local industrial clusters is a gradual process. In this principle, some advices are provided from aspects as follows: the introduction of designing talent, actively expansion of the domestic market, the creation of the export-oriented international markets, the building of regional brands and brand internationalization, the close expatiation is also given.