Intensive Channel Service Enterprises -- Chinese Textile Enterprises: Join Forces To Restart The Russian Market Door

"Current Russian textile

Wen Weidong's other status is responsible for the Guangdong silk textile group, Russia's "Guangdong business city" project.

It is precisely to see clearly the key point to enter the Russian market. In March of this year, the Guangdong Silk Textile Group officially launched the "Guangdong business city" project with the support of the Guangdong provincial government and relevant Russian industry organizations.

Not long ago, the Russian silk limited liability company incorporated in Moscow, Guangdong province Sili international Limited by Share Ltd officially opened, marking the "Guangdong business city" project has moved forward.

Developing new trade channels

"Since the closure of the container market in Moscow in 2009, the Russian textile and garment market has been rather chaotic, and many Chinese businessmen in Moscow have nowhere to go.

On the other hand, the Russian government's efforts to crack down on "grey customs clearance" have been increasing. It is difficult for foreign trade people who are accustomed to the inherent business mode to grasp the right way, and to do textile and garment business in Russia becomes more difficult.

Wen Weidong said.

The market has closed and customs clearance has changed. The changes in Russian textile and clothing sales channels in recent two years have tested the viability and resilience of Russian Chinese businessmen.

A survey shows that before the closure of the big market, the main business channels of Russian local textiles are: wholesale business developed by the federal government, wholesalers in various regions, retail networks in the federal government, regional retail networks and retail networks all over the country.

During this period, Russia's mature trading platform is not enough, especially in some small and medium-sized cities, the market is still dominant in the paction.

But over the past two years, Russian consumers are increasingly enjoying shopping in shopping malls.

In addition, the opening of more and more new trade centers has become the main driving force for the growth of trade volume.

"This situation has continued to this day.

The mainstream trade patterns have changed. Chinese businessmen and textile companies investing in Russia need a brand new display platform to bring their brand effect into full play and bring together and enlarge the competitive advantage of Chinese enterprises.

It is understood that in June last year, Guangdong silk spinning group began brewing in Russia to set up a trading platform to display Guangdong famous products, especially textile products. After nearly a year's planning, the Guangdong business city series projects gradually emerged.

First, the launching ceremony was held in the "Major" motor town in the northwest of Moscow. Shortly after that, a 600 square metre exhibition hall was built on the new Alba street in the center of Moscow, displaying silk products with unique Chinese characteristics and all kinds of clothing products.

"The establishment of the exhibition hall is to build a business platform for quality products in Guangdong and China, establish the image of Chinese brands and products, so as to promote the quality of Sino Russian merchandise trade and develop bilateral economic and trade cooperation."

Wen Weidong told reporters, "of course, this is also an important part of the construction process of" Guangdong business city ".

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In an interview with reporters, the Minister of public affairs of Russia's embassy in China said that at present, the market saturation of Russian light industrial products is 60%~70% of demand. Therefore, Russia has a very broad market space, and the prospects for the development of textile trade between the two countries are optimistic.

Relevant information also shows that in recent ten years, because of the positive development of business and trade, the welfare of residents has increased, and the Russian market is on the rise stage.

It is worth the concern of textile and garment enterprises that the proportion of clothing products in the middle priced market is increasing.

"The living standards of the Russian people continue to rise, reflected in the terminal market, the mid-range prices of clothing sales growth faster than the overall growth rate of clothing.

Data show that clothing sales in mid-range Russian prices will increase by 25%~30%.

Against this background, we define the high-end consumers in Russia as the target group of business platforms.

Wen Weidong said, "in fact, not only is the" Guangdong business platform "business, but I suggest that all entrepreneurs who enter the Russian market should change their vision of manufacturing, enhance their competitive edge by brand, win the market with service value, and gradually improve our product positioning.

In Wen Weidong's view, textile enterprises dominated by "manufacturing" mode are hard to compete in the Russian market.

"You may all know the 1, 3, 6 theory of product profits.

That is to say, from the production to the sales process, the allocation of profit space is: manufacturing accounts for 10%, logistics accounts for 30%, marketing and design R & D account for 60%.

And our foreign trade enterprises usually look for profit space in this "10%", talk about it, that is to share the profit of three or four yuan with the factory.

But now the Russian market, the three or four yuan is not good to earn.

On the one hand, the consumption level of consumers has been raised. Low value-added products are hard to have market; on the other hand, with the increase of operating costs in Russia, enterprises are forced to look for profits, focusing on logistics, marketing and design research and development.

The purpose of establishing our commercial city is to create profit space and market value for enterprises in the "30%" and "60%".

Wen Weidong said.

According to the introduction, the total investment of the "Guangdong business city" project is US $7 million 500 thousand, mainly for the establishment of the "Guangdong famous brand" system in Russia, bringing the quality products in Guangdong and even the whole country into the Russian market, and providing logistics services, customs clearance, finance, accounting and customer management.

Wen Weidong further explained: "the sales, logistics and other services provided by the platform are co-ordinated management. From this point of view, we can save a lot of money for enterprises.

It's like one hundred enterprises to share the cost of operation of the ten enterprises in the Russian market, and enterprises have more energy and resources to create their own brand image, and the aggregation effect of the platform is also reflected.

The most difficult public relations work is the trust of local governments and partners, but this is precisely the key factor to win the market.

Wen Weidong pointed out that when some enterprises are investing abroad, they always think about what resources and market space the other party can provide for themselves, but it is difficult to set up corresponding platforms for others, such as providing employment opportunities for local people and introducing high-quality products from cooperative enterprises.

"In fact, as long as we think about it and cooperate with our partners, we will open the door to the market.

It's the same thing to do business with Russians. "

Wen Weidong told reporters, "in the implementation of the project, we employ more than a dozen Russian local designers and salesmen, not only because they have a better understanding of market demand, but also to provide Russian partners with room for development.

Only when the interests of the two sides have a corresponding point, will they be able to provide their existing platform.

According to Wen Weidong, after the operation of the "Guangdong business city" project is mature, he is also ready to introduce Russia's high quality products to China, so that Sino Russian trade and investment on the platform can be developed in a balanced way.

"Maybe our business model does not apply to other enterprises, but the same is true.

After seeing the two-way development space of the project, Russia's relevant government and industry organizations also gave us support. I think this will be more conducive to promoting the project. "

As Wen Weidong said, perhaps for many Russian investment enterprises, dealing with the Russian government will become a very important topic.

Russia is a country dominated by government administrative control. The country is now in the period of economic development. Russian leaders have implemented a series of laws and regulations and administrative measures to support the development of commercial trade.

To successfully and smoothly develop business and trade activities, it is necessary to consider the possibility of cooperation with government agencies.

"I think our platform will create a profit margin for brands that are willing to change patterns and participate in international competition, help them build a market service system, and ultimately enhance product positioning, and open up markets in Russia and other Eastern European countries."

Wen Weidong said.