Jie ZHOU

Rotterdam School of Management，Erasmus University，P.O.Box 1738，3000 DR Rotterdam，The Netherlands

1 Introduction

In 2013，the total flower production area in China was1.2271million ha；the total sales of flower seedlings reached 128.811 billion yuan；the exports of flower seedlings reached ＄646 million.However，compared with some countries with a comparative advantage in the flower production and trade such as the Netherlands，Italy and Colombia，China lags behind in terms of flower varieties，production technology and marketing ways，and it also fiercely competes with the newly developed countries such as Malaysia，India and Vietnam in flower production and trade.In this case，it is particularly important to make positive efforts to explore the development of China's flower seedling production and trade，and it is of very important significance to maintaining the status of China's flower seedlings in the international market，and enhancing the international competitiveness and sustainable development of China's export of flower seedlings.The industrial competitive advantage of a country or region is closely related with four elements（factor endowments；demand conditions；conditions of related industries；industrial organization）.In order to gain a competitive advantage in the international market，the key lies in the dynamic integration of these four elements.The model constituted by these interrelated elements is the famous Diamond Model developed by Michael E.Porter，as shown in Fig.1.Using Diamond Model，we can analyze the causes of international competitiveness of China's export of flower seedlings.Existing researches on China's flower seedlings are mainly focused on the industry layout of flower seedling production，rational allocation of flower seedling resources as well as some problems in the production of China's flower seedlings such as the lack of new varieties of flowers，less high quality varieties and backward flower seedling cultivation techniques（Cao Yunchunet al.，2007；Ye Le'anet al.，2007；Cheng Shiguoet al.，2012；Shi Meiling，2012；Qiao Dehui，2013）；poor production facilities and low logistics performance of flower seedlings（Cao Yunchunet al.，2007；Ye Le'anet al.，2007；Cheng Shiguoet al.，2012；Shi Meiling，2012；Han Xinyi，2014）.Some studies are placed on the problems in China's export of flower seedlings such as small size of flower seedling export enterprises，low level of organization，low product quality standards，and vulnerability to green barriers and technical trade barriers of export markets（Wan Chaoweiet al.，2013；Qi Boet al.，2014）.Based on the above literature，it is found that it lacks the literature on the studies of China's export competitiveness of flower seedlings.Therefore，we use＂Diamond Model＂and market share as well as RCA index to study the export competitiveness of China's flower seedlings，in order to obtain valuable research conclusions.

2 The production and export of China's flower seedlings

2.1 The production of China's flower seed lingsIn 2013，the growing area of flower seedlings in Zhejiang Province ranked first in the country（145200 ha），followed by Jiangsu Province（141600 ha）.The top ten provinces in terms of the growing area of flowers and treesare Zhejiang，Jiangsu，Henan，Shandong，Sichuan，Hunan，Guangdong，Yunnan，Fujian and Anhui.The total growing area of flower seedlings in these provinces was906100 ha，accounting for 73.84%of the total area in the country.In 2013，among all provinces（autonomous regions and municipalities），Zhejiang ranked first in terms of sales of flower seedlings，and the flower sales reached 17.17 billion yuan，followed by Jiangsu and Guangdong（16.53 and 12.478 billion yuan，respectively）.The production of Chinese flower seed wasmainly concentrated in Inner Mongolia and Gansu，and their production area was 906.3 and 743.7 ha，respectively.The sales of Gansu reached 99.005million yuan，and the sales of Hunan reached 84.625million yuan.

2.2 The export of China's flower seed lingsIn 2013，China's exports of flower seedlings reached＄646 million，6.2 times the exports in 2001.The main export provinces include Yunnan，Guangdong，Fujian and Zhejiang.In 2013，the top three exporters in the world in terms of exports of flower seedlings were the Netherlands，Israel，and Belgium，with the market share of 41.8%，10.3%and 68%，respectively.The share of exports of China's flower seedlings in the global market is not high，only ranking 19th in 2013（0.3%-1.6%）（Fig.1）.During 2001-2013，China's total exports of flower seedlings showed a rapid growth trend，mainly due to rich natural resources and low labor costs in China.

3 The factors influencing the export competitiveness of China's flower seedlings

3.1 Production resources and technical conditionsThe production of flower seedlings needs land-intensive and labor-intensive input.The provinces now mainly engaged in the production of flower seedlings include Zhejiang，Jiangsu，Henan，Shandong，Sichuan，Hunan，Guangdong，Yunnan，Fujian and Anhui.These provinces have excellent natural conditions and manual labor conditions for the production of flower seedlings.However，the education level of labor engaged in the production of China's flower seedlings is not high，and the rate of adoption of new technologies is low.The level of production technology for flower seedlings is not only related to the overall output level of flower seedlings，but also related to the production quality and efficiency of flower seedlings，so it is necessary to improve the labor skills and production technology for China's flower seedlings as soon as possible.

3.2 Domestic and foreign demandFrom a domestic perspective，with the accelerated pace of urbanization in China，there has been a growing demand for flowers and seedlings.The urban landscaping and the rising level of people's appreciation of flowers and seedlings increase the demand.From the external market，during 2000-2013，China's export market of flower seed lings was incessantly expanded，reaching 97 countries（regions）.Obviously，China's flower seedlings are still very popular in the international market.It should be noted that China'smain export markets are in Asia，but Asia（except Japan）is not a major consumer of flowers.Meanwhile，it also indicates that there is a need tomake every effort to make more China's flower seedlings enter into the mainstream Europe and USA consumer markets.

3.3 Industrial organization and industrial chainThere are many problems in the production，management and marketing aspects of flower seedlings for China's flower seedling production and operation enterprises.In the production process，some flower seedling production and operation enterprises do not pay the wage to flower seedling producers，or they break the promise.Some enterprises lack efficiency in the production and operation of flower seedlings.In addition，the small business scale and weak industry chain have made China's flower seedling production and operation enterprises lose out to competitive foreign companies.

4 Conclusions and recommendations

4.1 ConclusionsThis paper first introduces＂National Diamond Model＂and reviews the literature related to the export of flower seedlings，analyzes the production and export status of China's flower seedlings，and then analyzes the factors（factor endowments，foreign demand，related industries and industrial organization）influencing the production of China's flower seedlings based on Diamond Model.Based on the above analysis，it is necessary to take the necessary steps to change the situation of China's flower seedlings in the international market.

4.2 Recommendations

4.2.1 Giving full play to the advantage in resources and impro-ving the level of flower seedling production technology.It is necessary to give full play to the advantage in production resources of China's flower seedlings，use advanced flower seedling technology，cultivate the flower seedling products with independent intellectual property rights，cultivate new varieties of flower seedlings with comparative advantage，and enhance the large-scale operation and industrialization of flower seedlings to raise the level of international competitiveness of flower seedlings.

4.2.2 Strengthening policy support and improving the degree of organization of flower seedling industry.It is necessary to strengthen the government's policy support to flower seedling industry，change the current disorderly competition and small-scale production and operation of flower seedlings，and organize a large number of scattered flower seedling production individuals to improve the professional level of flower seedling producers.It is also necessary to achieve effective linking of various parts of flower seedling production and gradually increase the level of competition of China's flower seedling industry in the international market.

4.2.3 Accelerating the development of new varieties of flower seedlings and opening up Europe and US markets.

At present，the main export market of China's flower seedlings is concentrated in the neighboring countries and regions such as Japan，China's Hong Kong，Singapore，Thailand and Russia.In recent years，the international competitiveness of China's flower seedlings has been increasingly enhanced，and the international market share of flower seedlings has also been increased.The export market is also gradually increased and the exports continue to enlarge.However，China still lags far behind the world's three major flower markets（US，Europe and Japan）in terms of flower exports.China should gradually establish the export-oriented flower seedling industry，and further enhance the international competitiveness of China's flower seedlings.

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