SMEs in Chinas Textile and Clothing Industry - Essay Example

Such situation is result from three reasons. Firstly, after China's entry of WTO, the firms in this industry are facing fierce competition from entry of foreign textile and clothing giant firms in domestic market. Secondly, the restriction from Europe and U.S. which are the main destination where Chinese clothing firms export has been published on June, 2005 (www.china.com. 2005). Finally, the recent appreciation of Chinese currency led to the decrease of export benefit; in other words, it increased the price of products in foreign market so as to reduce the product competitiveness of textile and clothing products exported.

Therefore, regarding the serious situation they never met, it is essential to investigate and find out the most effective and successful way of exporting, especially for small- and medium- firms in China's textile and clothing industry. The main aim of this study is to investigate the export methods and their influence on performance of small- and medium- firms (SMEs) in China's textile and clothing industry. . Such situation is result from three reasons. Firstly, after China's entry of WTO, the firms in this industry are facing fierce competition from entry of foreign textile and clothing giant firms in domestic market.

Secondly, the restriction from Europe and U.S. which are the main destination where Chinese clothing firms export has been published on June, 2005 (www.china.com. 2005). Finally, the recent appreciation of Chinese currency led to the decrease of export benefit; in other words, it increased the price of products in foreign market so as to reduce the product competitiveness of textile and clothing products exported. Therefore, regarding the serious situation they never met, it is essential to investigate and find out the most effective and successful way of exporting, especially for small- and medium- firms in China's textile and clothing industry.1.2 Objective of the StudyThe main aim of this study is to investigate the export methods and their influence on performance of small- and medium- firms (SMEs) in China's textile and clothing industry.

With this purpose, the study is going to identify the export method that is most frequently used and preferred to employ by SMEs when they engage in international export activities; furthermore, will also try to explore the method that is the most effective and successful for SMEs to penetrate into foreign markets as judged by export performance, so as to provide some information which could be useful in companies decision-making about the future exporting and the factors deciding it.Specifically, the objective of this study can be concluded as follows,Investigating the difference of employed export method of SMEs in terms of different