Research On Corporate Competitiveness Of Garment Companies

Garment industry of China has been playing a vital role in national economy, which is counted one of the most important industries in earning foreign exchange through exporting. And China is one of the largest countries for garment manufacturing, consuming and exporting, and had made great progress in the past 30 years, but garment industry of China is still competing in the lower part of industry chain, whose Value Added (VA) is lower and brand construction is weak. The top brand of garment industry of China is still in the hand of developed countries. With the quick development of Chinese economy, the competition advantage brought by lower labor cost and material cost is becoming weaker, which altogether bring great threat and challenge to Chinese garment companies.Starting from the Wall Street of USA, the global financial crisis of 2008 has developed from virtual economy to substantial economy, which brought great influence to garment industry. Improving the competitiveness of garment industry and facilitating industry upgrading to enable Chinese garment companies to compete in high VA domain is becoming an urgent task of current!The paper applies qualitative and quantitative method to analyze the effect of politics, economics, technology and social-environment to garment industry. The paper also makes a thorough analysis on Chinese garment industry with Porter Five Forces Model, and takes Youngor of China and ZARA of Spain as examples to explain the competitiveness of garment companies. At last, but not the least, through comparing with garment companies of developed countries, the paper brings up the methods and advices to improve the competitiveness of Chinese garment companies.