Study On The Problem Of Product Upgrading Of Textile And Garment Industry In Coastal Under The Change Of Business Cost

China's textile and garment enterprises are mainly concentrated in Shanghai, Zhejiang, Jiangsu, Guangdong, Shandong and Fujian, the textile and garment exports of these accounted for about 80%of our total exports every year. The six provinces are also the areas which business costs has largest changes, because of chaina's textile and garment enterprises are dependent on the cost of tranditionl comparative advantage, the changes in the business costs has severely affected the competitiveness of their products; In addition, Vietnam, Myanmar and other neighboring developing countries have relatively low business costs, and the textile and garment enterprises of these country are rapid rising, which made the major exporter of our country-the U.S., EU, Japan gradually shifted their purchases to these countries. According to Chinese statistics, after 10 years sustained growth, China's textile and garment exports fell 7.5%. In response, China launched a fierce debate academic circle; some scholars believed that the government should control the rapidly rising of business costs to make room for the development of textile and garment enterprises. But the paper argues that business should be a dialectical view of the rising of the business cost on both an opportunity and a threat enterprises, the enterprises should seize the opportunity, such as by increasing the value of the products to product upgrades, so as to find a way for the development of enterprises.The current study focuses on the problems which textile and garment enterprises are facing, rather than on the rising of business costs;In addition, the current study did not research business cost based on the level of interregional Comparison, and found the comparative advantage and comparative disadvantage of the region's textile and garment enterprises. Therefore, this paper focuses on the environment of the business costs rising, analyzes the relative comparative advantages and disadvantages between the six provinces and municipalities, finds the problems when the textile and garment enterprises making product upgrading, and proposes corresponding solving strategy, all of these have practical and academic value.Firstly, this paper references previous research results and builds the three-level index evaluation system of business costs; Secondly, The Case of Shanghai, by using SPSS to make the associated analysis between shanghai textile and garment exports and the each index of business costs, finding the indicators which have relatively large correlation and statistically significant, and forming the evaluation system of three target levels of business costs which influence the competitiveness of products of textile and garment enterprises. Then, doing the vertical and horizontal alignment of business costs between the coastal provinces and cities in six, and in accordance with the development status of provincial textile and garment enterprises, anglicizing the problems of product upgrading. Finally, learning the advanced experience of foreign countries and according to the specific circumstances of provinces and cities to put forward the corresponding product upgrade strategy.The research data which obtained mainly through the Statistical Yearbook, but does not collect and study subjective data of textile and garment enterprises, and the authors hopes to make further research in this area. This paper suggests that textile and garment enterprises should be based on their actual situation and the situation in their areas, through take the appropriate measures to doing product upgrades and gaining market competitiveness; at the same time they can turn their products to the domestic market, and do R & D and design for the market demand of domestic.