英语论文网

fabrics and similar without unique features (Italian Trade Commission, 2010). As domestic firms dominate the mass market, they hardly make a mark on the premium market (Li & Fung 2009). Chinese domestic firms are not as competitive in quality, variety, and technologies in comparison with dominate players . Costs are high to compete because many domestic firms need to import quality fabrics from countries such as countries within Europe to construct their quality apparel (Manufacturing Close-up, 2010). Domestic premium enterprises that are currently successful still have a long way until they are able to be true rivals with foreign enterprises (Li & Fung 2009).

However, foreign enterprises are currently dominating the high-end clothing scene, as consumers enjoy brands that can be easily recognized (Li & Fung 2009). For example, Italian companies enter the Chinese market with powerful competence that pose a great threat for the many domestic firms (Italian Trade Commission, 2010).

6.4 The Role of Technology and Innovation

A substantial lack in innovation within China is disrupting the potential of the premium clothing industry. Domestic firms that are fighting to be a part of high-quality clothing market, but are loosing out on opportunities with the main reason being insufficient technology and innovation. This is where foreign enterprises pick up the opportunities that domestic firms were forced to gave up (Italian Trade Commission, 2010). The opportunity cost in lack of technological advancements is evident regarding the current state of Chinese e-commerce. In this context e-commerce includes: exchange of information, sales of goods and services, payment, and transfer. A tool used by most firms of developed countries, and that of one which is crucial to expose core competencies and integrate operations, is just starting to take shape and considered a new marketing tool in China (Zeng, 2010). The lack in e-commerce is holding back domestic firms’ ability to carry out quality control during each activity of the value chain as well as respond to market changes (Zeng, 2010) (Lu, 2009). There seems to a significant detachment between designer and production, which makes for a slow reactions to changing demands (Lu, 2009).

Moreover, intermediary institutions play a key role in innovations and techniques during production process. These institutions offer services including technology transfer, labor training, financial support, and foreign market exploration. The Italian government recognizes the importance of these essential institutions to maintain the competiveness of the Italian clothing product. However, Chinese manufacturing enterprises wish to see this sort of support available within China. (Lau, To, Zhang, & Chen, 2009)

6.5 The Role of Government Support

Government support is considered as one of the top determinants of competiveness in the clothing industry by Chinese firms. From a perspective of the firms located in China, Government support is needed to increase infrastructure construction, deepen public services for the industry, and facilitate domestic inter-firm cooperation; all while stressing the importance of the domestic market (Lau, To, Zhang, & Chen, 2009). It seems as if the Chinese government is on the right track in response to these concerns. There are fiscal policies currently in place that are aimed to inc