Shijiazhuang Leather Will Enter The Russian Market

In recent years, Shijiazhuang's foreign trade exports have maintained a sustained and rapid development momentum. In particular, the export of fur and leather clothing (including leather clothing, fur clothing, fur integrated clothing and nixie clothing) has grown rapidly, and has become the largest export commodity of Shijiazhuang. As the main export market of such commodities is in Russia, Russia has maintained Shijiazhuang's position as the largest exporter of foreign trade for four consecutive years. It can be said that the current export of Shijiazhuang fur leather clothing is to Russia. To consolidate the position of the largest export commodity, we must consolidate the market in Russia. 1. The development of Shijiazhuang fur and leather clothing industry. Since the 1990s, with the fierce competition in the domestic market, the marketing direction of Shijiazhuang fur and leather clothing industry has changed to export-oriented, and quickly established its foothold in Russia. Most of the enterprises with a certain scale and strength have set up offices or sales personnel in Russia. Later, Xinji municipal government took the lead in the operation, and Xinji fur centers were set up in Moscow, Novosibirsk and St. Petersburg. Through the unremitting efforts of many leather enterprises and the strong support of various departments at all levels of the government, leather products have become the most important export commodities in Shijiazhuang, with more than 1500 production enterprises and more than 100000 employees. The technology, production scale and product quality maintain the advanced level in China. There are nearly 400 operating enterprises with export performance, accounting for 1 / 3 of the total number of export enterprises in the city. In 2005, the city's fur and leather clothing export was 980 million US dollars, an increase of 69.83% year-on-year, accounting for 26.3% of the city's total export value. Among them, 97% of the total exports to Russia. 2. Problems: with the strong promotion of trade with Russia, Shijiazhuang has formed a leather products export base with Xinji as the center, radiating Jinzhou, Wuji and other places, covering leather finishing, leather tanning, fur processing and garment processing, which has injected vitality into the local economy. But there are also problems in the process of development. At present, the prominent contradictions focus on customs clearance, transportation, tax refund and single market. 1. Grey customs clearance, constant friction. Shijiazhuang leather goods export to Russia mostly adopts the mode of tax and fee, and the transportation is mainly by charter plane, supplemented by train. Due to the high import tariff of Russia, domestic enterprises generally pass customs clearance through Russian customs clearance companies related to the local government and adopt non-standard means such as low value declaration or changing commodity name to reduce customs clearance cost, which belongs to gray customs clearance. Its fatal weakness lies in the fact that the enterprise can not get the official Russian customs payment certificate. Thus, the goods that appear to be "legally" entering Russia through the customs clearance company may suddenly become "illegal". Once inspected, the goods will be seized due to the lack of valid documents. Since 1998, there has been a trend that the Russian companies have been seizing more than 100 million yuan of aircraft, and there has been a trend of more and more serious losses in Shijiazhuang since 1998. The high-level trade negotiations and meetings between China and Russia involve the issue of charter flights many times. Both sides have expressed their intention to solve it, but no formal document has been formed. Therefore, the issue of charter flights has not been fundamentally solved. This will be a big hidden danger in Shijiazhuang's trade with Russia in the future. 2. The cost increases and the burden becomes heavier. First, tax rebate. Although this year, the state has adjusted the proportion of tax rebate burden and reduced the local burden, there are still many problems in the implementation. Enterprises in Xinji city reflect that in the process of tax rebate, the municipal finance requires the enterprises to pay 3% of the tax refund as temporary loans, regardless of whether the export exceeds the base number. In fact, the local government should bear 3% of the tax refund for the part of the excess base and 3% of the tax not exceeding the base that should be borne by the state are transferred to the enterprise, and the enterprise should pay 3% of the tax refund for the part not exceeding the base I will undertake it. Moreover, most enterprises have not returned 15% of the tax refund in 2004. The second is the rise in freight. Compared with last year, the freight mode of Shijiazhuang's export enterprises to Russia has changed greatly this year, and the number of enterprises adopting railway transportation has increased. However, the freight rates of various modes of transportation have increased by a large margin. Among them, the air freight (delivered in about 8 days) has increased from 7 to 8 US dollars per kilogram to 9 to 10 US dollars per kilogram. 3. The market is single and there are hidden dangers. At present, Shijiazhuang fur and leather clothing sales rely entirely on exports, and 97% of the exports are concentrated in Russia, the market is too single. In 2005, the off-season of Russian leather clothing was about a month earlier than that of the normal year, and many garment export enterprises in Xinji city had closed down or reduced production ahead of time. Moreover, the popular trend of Russian market is also changing, the old style of middle and low-grade leather clothing is no longer popular, fur and other high-grade fur clothing and other materials are hot-selling. How to consolidate the fashion trend of China's leather industry has become a major problem in China. First, we should pay close attention to the change of leather market in the future. Among the numerous leather goods production enterprises in Shijiazhuang, most of them stop production or reduce production when the off-season of Russian leather market comes, but some enterprises still sell their products well. The main reason is that the market research is good and the products are marketable. Therefore, if the relevant enterprises want to consolidate the Russian market, they should invest considerable energy and material resources to study the changes of Russian consumers' taste. With the rapid growth of Russian economy and the improvement of consumption ability, the leather industry countries have entered the Russian market; the domestic leather industry in Russia is also carrying out enterprise reform and expanding investment to compete with foreign leather products. According to the prediction of relevant experts, it will take at least four to five years for the Russian market to reach saturation. During this period, who can meet the needs of consumers, whose products are marketable, who can occupy the market and consolidate the market. At present, Shijiazhuang's leather exports are mainly in the middle and low grades, while Turkey and other countries are mainly in the middle and high-end markets in Russia, with a large profit margin. Shijiazhuang garment enterprises should make efforts to improve the product grade. In 2005, the sharp growth of high-grade fur and fur clothing shows this problem. The best way out for Russia is to open up a new market. As we all know, due to the nonstandard trade mode with Russia, the risk loss of Shijiazhuang fur leather clothing export will occur at any time; the market volatility is significantly increased than before. In 2005, the off-season of Russian leather clothing market was ahead of schedule, and the pure leather clothing was seriously unsalable after entering the fourth quarter. For most enterprises that stick to the Russian market, the above risks are often unexpected, and it is easy to cause overstocking and loss of goods. Therefore, in order to develop leather industry, while consolidating the Russian market, we must do everything possible to explore new markets such as Europe and the United States. In this regard, some enterprises in Shijiazhuang have already taken the lead. Some of them have set up offices in the United States and have done some basic work in establishing sales network; some have tried to cooperate with Korean businessmen to open up European and American markets; some have employed foreign agents to expand sales channels and have made considerable sales achievements. All enterprises should learn from the previous experience and expand their horizons. In addition, in terms of market development, we suggest that fur leather garment enterprises should take the Las Vegas leather show as a breakthrough point in the U.S. and Canada market, get to know more customers and actively strive for orders; for the EU market, it is suggested to take the former Eastern Europe or the former CIS countries that have recently joined the EU and are close to Russia as the springboard to find a foothold, establish sales channels and enter the EU market. 3. Government departments at all levels should create a good environment for leather industry. Leather industry is the largest industry in Shijiazhuang's export-oriented economy, with more than 100000 employees, and the social responsibility it carries is also huge. The relevant government departments must change their functions and do a good job in service. First, we should strictly implement the relevant national tax rebate policies to effectively reduce the burden of enterprises. At present, the profit of leather clothing export is very low, tax rebate is the key chip to determine the profit and loss of import and export enterprises. Only in this way can enterprises survive and develop. The second is to actively seek the support and help of the relevant departments of the state and provincial departments on the personal safety, property safety and cargo seizure and seizure of business personnel stationed in Russia, and strive to reach a formal cooperation contract with the Security Bureau of the Russian Federation, so as to ensure the steady development of trade with Russia. Third, actively organize enterprises to carry out market development. We should expand the scale of Shijiazhuang fur and leather garment enterprises to participate in the Las Vegas leather show, organize enterprises to visit the original Eastern European countries of the European Union for market investigation, and take various measures to coordinate and provide supporting services. Fourth, the functional departments should actively coordinate and solve the problems encountered in the process of production and operation.