Mechanism And Countermeasure Research On Using E-business To Transform And Upgrade Traditional Specialized Market

Nowadays, the rise of e-business and other forms of circulation have greatly influenced the future development of traditional specialized market. As known to all, e-business has great advantages on reducing transaction cost, expanding market scope, improving transaction efficiency, etc., over traditional specialized market. Therefore, many traditional specialized markets diversify their transaction mode and procedure through cooperation with electronic commerce sites or constructing self-own site, in order to accelerate the process of transformation and upgrading. Researches about mechanism on using e-business to transform and upgrade traditional specialized market and to achieve two complementary advantages, will help to play an important role both in promoting regional economic development.Based on questionnaire surveys and field interviews to the traditional specialized markets in Zhejiang, Jiangsu, Guangdong and other places, this article summarizes three phase as primary, intermediate stage and advanced stage, three models as Integration of market and site management, interactive marketing and web site development and web site directly involved in market transactions, four kinds of innovation model as trading methods and market-shaping innovation, demonstrate functional innovation, and logistics capabilities and supply chain technology innovation innovation of new specialized market in the development of E-commerce and specialized market.This article divides the internal mechanism into two parts for research. First this paper uses theoretical analysis by the theory of comparative advantage and information search model of e-commerce to upgrade the specialized market. And that e-commerce significantly enhances the role on strengthening comparative advantages and to reduce the search costs of traditional specialized market. Second, based on a bilateral network effects this paper analizes pricing model and influencing factors of e-commerce involved in specialized market. And that the level of information service, network externalities and switching costs are the main factors.Based on the above theoretical analysis, this paper take Zhejiang Yiwu Small Commodity Market for example, combining survey research with the field derived from empirical studies of e-commerce to transform and upgrade traditional inner mechanism of specialized market. This paper argues that e-commerce has traditionally been the initial development of specialized market, its advantages will become more pronounced such as in the international outreach. At the same time, it has a a significant relationship with nature of specialized market in e-commerce e-commerce to transform and upgrade specialized market. In addition, e-commerce will break the tradition of the original balance of the specialized market, and re-shuffle that give birth to new specialized market.Last,the conclusions and policy implications of analyses above are put forward. This paper argues that increasing market brand, building a modern logistics will effectively play e-commerce on specialized market reforms.And it is necessary to develop different approaches for different markets.