Shenzhen Multi Directional Boost Transformation And Upgrading Of Garment Industry

The transformation and upgrading of traditional industries requires the invisible hand of the market and the "visible hand" of the government to work together to form a joint effort to boost enterprises' rebirth. This is an important inspiration for Shenzhen's transformation and upgrading of garment industry.

The strength of the market is the internal driving force to promote the transformation and upgrading of traditional industries. In essence, the process of industrial transformation and upgrading is a process of resource allocation and reconfiguration, and the market rule and market mechanism play an irreplaceable decisive role. In order to achieve transformation and upgrading of traditional industries, it is necessary to optimize the strategic competitive resources, so that the industry will gradually increase to the two ends of the "Smiling Curve" with high added value, that is, tilting to the ends of R & D and marketing, thus cutting the biggest part of the profit "cake". Taking the clothing industry of Shenzhen as an example, it is precisely under the guidance of the "invisible hand" of the market that many of our garment enterprises have completely abandoned the business model of earning a little hard money on the basis of foundry work, and automatically and consciously allocate the focus of resource elements to tree brands, create new ideas and create high added value, so as to advance to the high end of the industrial chain. In the fashion industry, the transformation and upgrading of other traditional industries in Shenzhen, such as watches, jewellery, furniture and printing, are also the same. We must grasp the market rules and innovate the market mechanism, so that the role of "invisible hand" can be more effective in promoting transformation.

Although the power of "invisible hand" is strong, it also has its own limitations which cannot be overcome. The transformation and upgrading of traditional industries must rely on the power of "visible hands". In particular, when the international and domestic economic environment has undergone tremendous changes and enterprises are facing difficulties and crises, more visible hand is needed to play an important role in guiding economic development and creating a good environment. Shenzhen's governments at all levels and relevant departments and industry service organizations are well versed in its rationale. In supporting the transformation and development of the garment industry, from the policy guidance to the specific support, from the market environment, the cultivation of the "fashion" soil, to the exhibition platform, the construction of the industrial base, and the promotion of industrial gathering and strengthening of strategic alliances, the government and industry associations can make a great effort. Without the help of government and trade associations, Shenzhen's garment industry could not be transformed from a low-end processing industry to a high-end fashion and creative culture industry.

Believing that "visible hand" and "invisible hand" lend each other and form a resultant force will greatly promote the transformation and upgrading of traditional industries, and then promote the transformation of Shenzhen's economic development mode.