The Research On The Brand Strategy Of Labor-intensive Industrial Clusters Under The Global Value Chain

With the deepening of economic globalization, China’s labor-intensive industrial clusters embedded into global value chain with the advantages of their own labor resources and natural resources, by means of OEM and the transfer of industry. But these ways obtained only a fraction of the profits relative to the big foreign companies. It also trapped most of our businesses in the low end of the global value chain. In order to break this situation, China’s labor-intensive industry clusters must upgrade along the global value chain. While brand is in the high end of global value chain, containing much high values than manufacturing sectors, can help Chinese labor-intensive industrial clusters upgrade along the global value chain. Therefore, industry clusters brand strategy will be the effective method to solve the locking problem and clime to the high end of global value chain.This paper first introduces the current situation and the main problems existing in the process of brand strategy in labor-intensive industry clusters, and points out the status in the global value chain. Secondly, based on global value chain theory, this paper summarizes the factors that affect the brand strategy of China’s labor-intensive industrial clusters:dynamic mechanism, governance model, the role of enterprises as well as the role of governments and industrial associations. Thirdly, take examples of Zhejiang Shengzhou neckties, Guangdong Dalang woolens and Fujian Jinjiang footwears industry cluster brand, introduces their current situation of brand strategy, status in the global value chain, and how global value chain dynamic mechanisms, governance model, enterprise, government industry associations influence industrial cluster brand. Finally, in connection with the global value chain, considering the five factors of labor-intensive industry cluster brand, problems existing in the process of brand strategy and brand of practice of Zhejiang Shengzhou neckties, Guangdong Dalang woolens and Fujian Jinjiang footwears industry cluster, this paper puts forward some suggestions from enterprise, government and industry associations in three dimensions.The innovation of this paper are the following two points:First, we use the tool of the global value chain theory, Most scholars studied how local industrial clusters upgrade along the global value chain, there are few scholars studied industrial cluster brand strategy under the global value chain. In this paper, we skillfully combine the global value chain theory with industrial cluster theory, analyze brand strategy of China’s labor-intensive industrial clusters. Secondly, we compare the labor-intensive industry cluster brand strategies of Zhejiang Shengzhou tie, Guangdong Dalang Woolen, Fujian Jinjiang footwear industry cluster. They are compared from two aspects of differences and similarities. The similarities are global value chain dynamic mechanisms as well as government and industry associations. The differences are the current situation of industry cluster brand, the status in the global value chain, governance model and the role played by big enterprise.