Chengdu Footwear Industry Is Fighting Russia'S "Ban On Business"

Russian Federation's prime minister Fradkov signed the government decree banning foreigners from selling stalls and markets in the 15 day of November 2006. According to the decree, the number of foreign immigrants who engage in retail trade in the Russian market, tents and shops outside April 1, 2007 should be limited to 40% of the total number of retail businesses and a total ban on foreigners engaging in retail trade.

To this end, Fradkov asked all retail employers to control the number of employed foreign workers according to the law, otherwise they would be fined heavily.

In January 15, 2007, the prohibition order came into effect.

Chengdu's retailer selling leather shoes in Russia began to sell in tears, with a discount of 10%.

At present, there are more than 1700 women's shoes enterprises in Chengdu, of which 70% of them are exported to Russia.

Most of these leather shoes were circulated to Russia through the "grey customs clearance" of abnormal ways, and sold to Russians through retailers.

After the introduction of the new deal, nearly 10000 Chinese people in Russia engaged in retail business left Russia, and Chengdu women's shoes once fell into a trough.

Many enterprises that rely solely on the survival and sale of single products are forced to close their businesses.

In February this year, the footwear companies in Western Sichuan and the Sino Russian economic and trade cooperation center and Beijing Sino Russian Holding Group signed the Sino Russian trade framework agreement, trying to export the Chengdu women's shoes through the bilateral trade and other means through the overall attack of Chengdu women's shoes enterprises.

Footwear enterprises directly face Russian business in April 21st. "2007 China Women's shoes capital Sino Russian footwear trade fair" was held in Wuhou District. This is the first bilateral trade activity held after Russia's "New Deal".

According to Ceng Jinge, Secretary of the Wuhou District shoe capital management committee, the event aims to further deepen Sino Russian trade cooperation, build an international trade platform for Chengdu footwear industry, and change the difficult situation of Chengdu's footwear industry since the "ban on business order".

Marks the Chengdu shoe industry has entered the internationalization of the "big trade" road.

It is understood that, in order to effectively promote the export oriented development of Chengdu's footwear industry and expand the international market, in March, the Wuhou District footwear Capital Management Committee and shoes company helped Sichuan to participate in the "Russian China year" campaign to promote the brand of Chinese women's shoes. In April, the Russian side organized a group, including more than 50 buyers such as Alapa, directly talking to the footwear enterprises of Wuhou District's Chinese women's shoes city, on-site viewing and signing, and facilitated bilateral trade cooperation.

Reporters at the scene saw that the local dominant shoe enterprises such as Amir, GUCCI, and GUCCI contacted with Russian buyers one by one, face-to-face and directly carried out the display and promotion of brand products. Through the "one to one" contact among shoe manufacturers, Russian buyers, especially the well-known shoe distribution companies with the top three in Russia, such as Alapa, really understood the advantages of the shoes and made direct orders.

Alan, project manager of the Sino Russian economic and trade cooperation center, told reporters that Chengdu women's shoes are fashionable in style, good quality, cheaper in price and good in color. Russians like to wear Chengdu women's shoes.

Chengdu women's shoes have been playing a very important role in the Russian market. After Chengdu's "ban on business order" came into effect, the women's shoes once quit the retail market, which also caused a great impact on the shoe market in Russia.

Many buyers worry about not knowing what ways and opportunities to buy Chengdu shoes to meet the needs of the Russian market. The Russian side has contacted the Wuhou District shoe capital management committee and the shoe company, and the two sides have launched a positive cooperation and signed a cooperation agreement.

I heard that many buyers of shoes were very interested in Chengdu's purchase of women's shoes. They were also very enthusiastic. In less than a month, they set up a purchasing group consisting of more than 50 businessmen.

"Gray" is on track. It is understood that at present, Chengdu shoes are mainly in the middle and low end market in Russia, so it is difficult to enter the mainstream consumer market such as shopping malls and department stores in Russia, and exist in the form of retail for a long time.

At the same time, Chengdu shoes have more brand products and fewer brands. There is no brand influence in the Russian market. There is no brand with high popularity in Russia. This also restricts the foreign trade development of Chengdu shoe industry.

Peng Jun, chairman of the footwear capital of Western Sichuan, said that at present, the marketing channel of Chengdu footwear industry is mainly exported, and the export objects are single. Russia is the first export power of Chengdu footwear industry. The export of Chengdu shoes is mainly based on border trade, and has no direct involvement in the supply of terminal customers. There are no regular channels such as self export or agent export. Most of them are heavily dependent on border trade through the form of gray customs clearance.

Since last year, the Russian government introduced and implemented a government decree to eliminate "gray customs clearance" and prohibit foreigners from engaging in retail trade in Chengdu. The shoe industry in China has been faced with a great challenge, and its traditional export mode is facing challenges.

To break through the difficulties and overcome difficulties, this time the Russian purchasers "please come in" and hold a professional trade fair. That is to change the single, grey, passive traditional trade mode of Chengdu footwear industry, take the road of internationalization and "big trade", promote the establishment of bilateral normal shoes trade channels, expand the new way of Chengdu shoes entering the Russian market, and seek the new development of Chengdu shoe industry in the export to Russia under the "New Deal".

At the same time, it has expanded to carry out such professional trade negotiations with purchasers from more countries in the world and carry out extensive foreign trade and economic cooperation.

Through the platform of professional trade fair, Chengdu shoes are no longer "sneaky" but "just and bright". They formally embark on the stage of international trade through formal channels, take a solid step on the development path of Chengdu footwear industry, and at the same time, make the road wider and further.

"Holding the professional trade fair, shoe companies will directly display the products of buyers in Russia, see the samples and place orders at the scene, which will help enterprises to continuously improve the quality of products, reduce intermediate links and save costs."

An enterprise representative from Chengdu told reporters.

It is understood that on the first day of the trade fair, Chengdu shoe enterprises signed an agreement of intent agreement with Russian buyers, with a total value of US $about 3000000.

This mode will become the most effective way to change Chengdu women's shoes out of Russia's "ban on business order" dilemma.