Research on Abroad Direct Distribution Alliance Strategy for Chinese Garment Foreign Trade SMEs Surviving in the Recession

Abstract

The whole world is struggling with the recession. As a significant role in the global economy, China is facing big challenges to keep the stable growth in economy. The Chinese garment foreign trade small & medium size enterprises (SMEs) are continuing to be severely hit these years. The increasing exchange rate of the Renminbi, raising price of raw material, and the rapid growth of cost of labor and capital bring Chinese garment trade SMEs the crisis for survival. This paper is mainly studying on the existing difficulties, the possible strategies and measures which the Chinese garment foreign trade SMEs could adopt to survive during the world economy crisis. The abroad direct distribution alliance strategy and its benefits are introduced. Some suggestions for applying the abroad direct distribution alliance model are provided. This paper identified a feasible and effective solution for Chinese garment foreign trade SMEs compete in the global market and most importantly survive in this world recession.