After 30 years of reform and opening up, due to the development of industrial clusters, Cixi's economy has a great leap forward. Over the years, the specialized industrial cluster development with features as small and medium enterprises as the mainstay and characteristics industry as the pillar industry played a crucial role in promoting the development of Cixi’s economy. And the household electrical appliances industry clusters is the typical of the characteristics industry. The paper will briefly introduce the features of Cixi’s economy and focus on the strengths and weaknesses of the development of household electrical appliance , analyze the problems such as low-tech content, the missing brand, small-scale enterprises, the layout of the relative dispersion, inter-related issues and poor coordination ability in the development of Cixi industry clusters. And sum up the strategy of industrial upgrading in order to improve the home electrical appliance industry, as represented by the characteristics of the overall competitiveness of industry.
KEYWORDS: Cixi’s economy，Mode of development，Household appliances industrial，Industrial cluster
