What Is a Global Value Chain?

Global value chain refers to a global cross-enterprise network organization that connects production, sales, recycling and other processes in order to realize the value of goods or services. It involves from raw material procurement and transportation, production and distribution of semi-finished products and finished products to final consumption and recycling processing. The whole process. Including all participants and the organization of production and sales activities, as well as their value and profit distribution, the current companies in the value chain scattered around the world are engaged in design, product development, manufacturing, marketing, delivery, consumption, after-sales service, Finally, recycling and other value-added activities.

Global value chain

I. Definition

Literature review

Three. The main content

IV. Essence and Impact

V. Elementary exploration

6. Governance model

Seven. Case study

The value chain theory in management science, as well as the "process" and "value-added concepts" contained in the theory, have laid a good research foundation for the subsequent interpretation of the global value chain division of labor theory. Harvard in 1985 ^[1]

From the above definition, it can be seen that the more complex a product is, the more processes it includes, and the longer its vertical dimension; the larger the industry, the more likely it is to obtain a specialized division of labor.

The division of the governance model of the global value chain is of great significance for the research on the global industrial transfer issues that are currently more concerned in China. The process and results of industrial space transfer under different governance models are significantly different: in a modular governance model, each manufacturer is a relationship of complementary advantages, not a control relationship, the manufacturer's market adaptability is strong, and the degree of investment specificity is low. Has a strong ability to transfer space. In the relational governance model,

The research on the governance model of global value chains begins with the research on the relationship between enterprises, and generally follows the inductive model from a single industry or industrial cluster to a theoretical framework. Therefore, early research began with industrial clusters and production networks.

In 1990, network scientist Powell (1990) divided the governance structure of production networks into three types: market, network, and hierarchical organization.

Griffi et al. (Gereffi, 2003)

Case study 1: Development of Tangshan ceramic industry cluster based on global value chain

I. Development Status of Tangshan Ceramic Industry Cluster

Tangshan is located in the central area of the Bohai Bay, bordering the Bohai Sea in the south, Yanshan in the north, bordering Qinhuangdao City in the east, Beijing and Tianjin in the west, well-developed transportation and abundant domestic resources. These superior natural conditions have contributed to the rapid development of the Tangshan ceramic industry. Tangshan Ceramics is an industrial cluster formed by traditional industries. Now it has gathered large ceramic enterprises such as Tangtao Group Huida Ceramics Group, Ronda, Haigray and so on.

The ceramic industry is one of the pillar industries in Tangshan. A large part of the output value of the ceramic industry in Tangshan comes from exporting foreign exchange. At present, the export proportion of large and medium ceramic factories in Tangshan area can reach 70-80%, and small and medium-sized enterprises are also close to 50%. Individual brands with high reputation can reach all exports. Tangshan ceramic industry clustered very early, but industrial clusters have only developed in recent years, and there are still many problems in its development.

(I) Product design

There are many ceramic enterprises in Tangshan, but most of them are small and medium-sized ceramic enterprises with small capital. Due to the limitation of funds and energy, the R & D and design costs are low, the product design lacks characteristics and personality, and the product is homogeneous and imitation. Products that rely solely on imitation have a very low market share. Tangshan lacks professional design talents. In 2004, the Beijing Organizing Committee for the Olympic Games solicited Olympic tourism souvenir ceramics, but more than 200 ceramic manufacturers in Tangshan did not present a sample and lost the opportunity to share the Olympic economy.

(Two) production links

Most ceramic export enterprises in Tangshan practice OEM, and about 80% of the hundreds of millions of ceramic products exported by Tangshan are OEM. The average exchange rate of China's single ceramic products has hovered between 0.20-0.25 US dollars for many years, and Tangshan ceramic exports have maintained low profits for many years. Although OEM has made Tangshan's ceramic products export volume grow rapidly and promoted the short-term development of Tangshan ceramics industry to a certain extent, OEM production has essentially turned many ceramic factories in Tangshan into "processing plants" for OEMs. What the enterprise earns is only low processing fees, and the high added value has been taken away by the OEM, and the products produced by the OEM have seized a lot of market share in the international market.

(III) Marketing and distribution

On the marketing strategy of Tangshan Ceramics, through a number of large-scale exhibitions to expand the international influence of the brand, and even complete order transactions. Most companies in Tangshan will participate in the Canton Fair in November, the export fair in October, and the Shanghai exhibition in May. The ceramic expo held in Tangshan over the years has also attracted many domestic and foreign investors.

Most of the domestic distribution methods are to establish their own distribution stores throughout the country. Large-scale ceramic enterprises will also set up marketing centers, experience stores, image stores, etc. in large cities. For example: Huida Ceramics transformed its specialty stores with 20 million in 2005 , All of the scale below 100 square meters have been cancelled, and a super-large store of 1,000 square meters has been established in Zhengzhou.

(4) Support and services for end users.

Most ceramic enterprises in Tangshan do not have a complete service system in China. In recent years, many well-known companies have continuously introduced new ideas and new measures in brand services, and all of them are continuous interpretation of innovative services. Eagle Ceramics pioneered the "Home Consulting Service" system, transforming traditional after-sales service into pre-sale services; Dongpeng Ceramics fully introduced the TCS service system to take the lead in sounding the war of service wars among ceramic enterprises. If Tangshan Ceramics wants to occupy a place in the domestic market, it must improve the enterprise service system.

Research on the Development of Tangshan Ceramic Industry Cluster from the Perspective of Global Value Chain

(I) Product design

Based on the global value chain theory, not all activities of the industry can create value. If we want to improve the link of the industry in the global value chain, we must enhance the value in the link of creating value. For ceramic products, good design means high added value.

For ceramics enterprises, design is an important way for enterprises to stay away from imitation, form differences, move towards creation, and create brands. Design can create a market. Tangshan ceramic enterprises should pay attention to the introduction and training of high-end professional ceramic designers, and pay attention to the needs of the international market.

If you want to occupy a large market share in the international market, you can't win by relying only on raw materials and manufacturing processes. Design has become the main factor leading people to buy products and the main means to enhance the value of product design. For example: an Eagle brand sanitary ware with a special price of 4,000 yuan due to the style; an ordinary glazed Hecheng sanitary ware with an arc shape of 6740 yuan; and an ultra-glazed sanitary ware with the same brand. 2200 yuan. It can be seen that the style design has largely caused the price difference. Design is an important way for an enterprise to create a brand. Brands also play an important role in increasing product value. For example, TO-TO, Kohler, Wrigley, American Standard, etc., the prices of several major bathroom brands are often several times the price of some unknown brands, and individual models are even higher.

Taking the toilet as an example, some unknown products are only priced at a few hundred yuan, while well-known brands and imported brands often cost thousands or even tens of thousands of yuan. Improving the production level and grade of ceramic products, developing artistic porcelain, researching and developing new ceramics, and taking the road of industrial ceramics and brand ceramics are the key to Tangshan ceramics development, and also the development direction of Tangshan ceramics in the future.

(Two) production links

Tangshan Ceramics needs to continue to actively learn and introduce advanced foreign production technology. The improvement of production technology and the introduction and use of advanced equipment have improved product quality and contributed to the standardized production and volume promotion of ceramic products. The increase in productivity and technological advancement provide technical support for the research and development and production of high-end products. In the mid-1980s, Huida Ceramics Group was still a small factory with only two smoke kiln. Now it has become the largest ceramic manufacturer in Tangshan. After entering the 21st century, the company invested more than 450 million yuan to transform the original coal-fired tunnel into the largest natural gas kiln in China and built 7 boutique factories, which enabled the company to produce 8 million high- and medium-grade ceramics. China's well-known trademark, China's famous brand, the title of national inspection-free product, became the first company in the building sanitary ceramics industry to have these three awards.

(III) Marketing and distribution

Tangshan ceramic industry needs to open up marketing channels extensively

The rural area is a vast market. The policy of benefiting farmers has steadily improved the living standards of farmers, and low-end products are no longer the main consumer products. To develop this market, we need to thoroughly investigate the demand of rural ceramic products and make specific marketing plans. Enterprises need to train sales staff to cultivate the professional ethics and team spirit of sales staff. In the sales department, professional designers must be assigned to customers. Give professional sales advice.

The promotion and use of online marketing need to be strengthened. The development of the Internet has provided enterprises with a broad trading platform. Although some large enterprises in Tangshan have their own websites, the quality of the websites is not good, and the information such as product graphics and prices are too rough.

(IV) Support and services for end users

Support and service to end users are important: it is the last line of defense to protect the rights and interests of consumers, and it is an effective measure to maintain customer satisfaction and loyalty; companies can obtain information about changes in customer needs and improve products from these services. Helps companies improve product design and increase sales.

The support and service for end users is to deal with product opinions and suggestions, and it has an important supporting role in other links that create value. The better a company's service system and the higher the service level, the better the customer's response. Now is the era of the Internet. People's impressions of various products and services can be reflected on the Internet. Good products and good services naturally make customers happy physically and mentally, which has increased the visibility of the product and expanded the wider market.

3. From the perspective of the hierarchy of each value link in the global value chain, there is only one option for the development strategy of any local industrial cluster, which is to continuously climb towards the high value-added link of the global value chain. The Tangshan Municipal Government needs to strengthen guidance, planning, and support for its development, use the global value chain theory to analyze the Tangshan ceramic industry cluster, find the key to enhance the competitiveness of the Tangshan ceramic industry, and guide the healthy, stable, and sustainable development of the Tangshan ceramic industry cluster.

Case 2: Transformation and Upgrading of Wenzhou Shoe Industry Based on Global Value Chain

I. Overview of the International Footwear Industry

The global footwear manufacturing countries are concentrated in some countries and regions in East Asia, Europe and South America. There are now 40,000 to various shoe manufacturing companies. The total number of employees in the footwear industry and related industries such as shoe materials and shoe machines is nearly 10 million. , Asia's annual shoe output is about 12 billion pairs, accounting for 70% of the world's total output. At present, only China and Vietnam in the global footwear industry maintain positive growth, and other regions are facing a recession. Among them, the output of shoes exported from mainland China accounts for about 53% of the global total exports.

The main consumer markets for global footwear products are concentrated in two types of regions: one is the economically developed countries and regions, such as the United States, the European Union, Japan, and Canada; the other is the countries and regions with large populations, such as China, India, and Brazil , Indonesia, etc. According to the British SATRA (British Boots and Footwear Association) forecast, the world s footwear consumption in 2010 will reach 15.80 billion pairs; it is estimated that the total consumption of world sports and leisure shoes in 2010 will reach 2.4 billion pairs, and the market retail sales will exceed 10 billion US dollars . According to the development trend of the international market, as the world's raw material prices generally rise, it is expected that by 2010, the world's consumer retail prices of rubber shoes and footwear will rise.

The basic pattern of the global footwear industry is: Europe (Italy, Germany, France, etc.) is the world leader in the development, manufacture and trend of high-end leather shoes, and it has monopolized many internationally renowned brands. Its products have high added value and rank in the global value chain. High-end; Asia (especially China) is still the processing and manufacturing base of the world's footwear industry, with a lack of independent brands. Many companies do OEM production, with low added value of products and being at the low end of the global value chain.

According to the survey, there are more than 4,500 shoe-making enterprises in Wenzhou, and more than 2,500 shoe-making, shoe materials, leather, synthetic leather, leather chemical and other enterprises related to the shoe industry, with nearly 400,000 employees and an annual output of more than 1 billion pairs. , Accounting for about 25% of the country and 1/8 of the world. From 2005 to 2007, the total output value, export value and export volume of Wenzhou footwear industry maintained rapid growth (Figure 1, Figure 2), affected by the international financial crisis, In 2008, the export of Wenzhou shoe products was affected to a certain extent, but the domestic shoe-making enterprises' production and operation conditions were good. At present, the Wenzhou shoe industry has formed a unique development pattern, and domestic companies such as Kangnai, Aokang, Xidu Bird, Mulinsen, and Red Dragonfly have emerged. Dongyi, Dibang, and Jindi Export-oriented enterprises represented by such companies; men's shoes represented by Cornell, Aokang, Red Dragonfly, Dongyi, etc .; women's shoes represented by Aimeo, Huafeng, Aokang; etc. Wenzhou Hansen represented by foreign trade labor insurance shoes. However, on the whole, Wenzhou's footwear industry lacks well-known international brands. Most companies focus on OEM processing, take a lower price route in the international market, and are in a low value-added link in the global value chain.

Second, there are three major problems in the shoe industry in Wenzhou

Wenzhou's footwear industry has encountered many problems in its rapid development, such as high land costs, rising raw material prices, shortage of talents, environmental pollution, and frequent trade frictions. This article mainly discusses the problems in the brand, R & D and marketing of Wenzhou shoe industry based on the global value chain.

1. Relative lack of independent brands. Brands are the concentrated expression of the value of enterprises and products, and also an important source for enterprises to increase market share and increase added value of products. Although Wenzhou currently has a number of well-known domestic brands such as "Cornell", "Aokang" and "Red Dragonfly", it still lacks internationally renowned brands. In the international market, export shoes are mostly OEM processing. Most of the added value is obtained by global buyers; most of the footwear products marketed by Wenzhou are also targeted at the low-end market. Compared with Italian and American brands, the profits differ by more than ten to several dozen times.

2. Insufficient R & D and design capabilities. In terms of R & D and design, there are two main problems in the Wenzhou shoe industry. On the one hand, there is a relative lack of talents, especially in the design, development, and management of shoemaking talents. The main reasons are as follows: First, Wenzhou's small and medium-sized shoe-making enterprise systems are incomplete, and personnel training is not systematic and non-standard; second, Wenzhou's urban living environment is not good, housing prices are extremely high, and the overall cost of living is too high, causing most professional talents to flow to Ningbo , Hangzhou, Shanghai and other places; Third, there is a serious phenomenon of "digging people" in the industry, and the construction of the talent team is unstable, especially the flow of designers is very frequent. The other problem is the lack of independent innovation. Because it is difficult to effectively prevent design imitation or even plagiarism, most Wenzhou shoe companies follow the path of imitation. Local companies rarely develop and design creative and high-quality shoes independently. Domestic imitation of Guangzhou shoes and international imitation of Italian shoes. At present, this problem has become an important "bottleneck" for Wenzhou Footwear's independent research and development and creation of independent brands.

3. Excessive competition within the industry. Wenzhou, as the main production base of China's footwear industry, has a high concentration of shoe-making enterprises and similar products. The phenomenon of excessive competition within the industry is very serious. In the domestic market, Wenzhou's sales of medium and high-end leather shoes are basically concentrated in the second- and third-tier cities. The insufficient product segmentation directly intensifies the excessive competition of shoe manufacturers on the same level. In the international market, some companies Grab the export market and compete at bargaining prices at any cost, resulting in frequent incidents of international trade friction.