Research On The Complementarity And Competition For BRICS’ Furniture Industry

At the beginning of 21 st Century, as the representative of the developing countries Brazil, Russia, India, China developed rapidly. They become to be an important driving force for global economic growth. In December 2010, in the first meeting for BRIC, the four countries decided to absorb South Africa to join the cooperation mechanism. In April 2011, South Africa attended the third BRICs leader summit held in Sanya China. The BRIC develop to BRICS. The strength of BRICS is more powerful.In recent years, the value of import and export for BRICS’ furniture industry has been increasing. The proportion for BRICS’ export in the world furniture export is in a rising process. The share is bigger and bigger, occupying an increasing important position in the world’s furniture industry. Although the import share is not so big as export, it also shows a rising trend.Trade data in this context selected from United Nations commodity trade database. The data of BRICS from 2002 to 2012 is include. Use the commodity HS2002 classification to analyze the data of other furniture and parts under the content of ninety-fourth chapter. Through the description of the present situation, we can have a preliminary understanding to the furniture trade of BRICS’s. Use the Export Similarity Index to diagnose the competition between BRICS in furniture trade in the third market and use the Revealed Comparative Advantage Index to find out the competitive product for each country. Then use Trade Intensity Index to observe the furniture trade flow between the BRICS. The Complementary Index can measure the complementarity of furniture trade between the five countries. The analysis shows that each country has its own competitive products and the competitive products are Highly complementary with other BRICS countriy. And the competition and complementarity both exist in the furniture trade among the five countries. The enterprises of Chinese furniture should establish a concept of keeping good quality, building company brand and searching for new marketing. Quality is the foothold of the enterprise. A good brand can become intangible asset of the enterprise, it can add value of the product. And the enterprises can find more appropriate buyers of sellers through the Internet, it also can increase the sales by expand the quantity. In this way the enterprise can obtain more profit. To earn profits, the enterprise with competitive should make effort to improve their competitiveness, enhance the complementarity with other four countries. At the same time the furniture enterprise should reduce the production that don’t have competition. Also the government should give more support to the Chinese furniture enterprises, providing more convenient policy, to lay a solid foundation for the development of furniture industry.