Abstract:

Normative economics model was used to explain the homogenization competition phenomenon and structure mismatch of domestic garment industry. Furthermore, the relationship between product differentiation strategy and enterprise benefit was analyzed, and then the important factors affecting the strategy of product differentiation was discussed. The results show that the basic reason for the homogenization competition of garment industry is the lack of independent product innovation cap ability and the pursuit of profit maximization. The key effect of garment industry supply side structural reform is that garment firms need to adopt differentiation competitive strategy, and must pay attention to look for new garment market segments, weigh the marginal costs and benefits , and focus on the consumer demand change. In the end, countermeasures are proposed from the two levels of government and firms.

Key words: supply-side structuralreform, garment industry, homogenization competition, product differentiation