Shijiazhuang Leather'S Way Into Russian Market

In recent years, Shijiazhuang's export has maintained a sustained and rapid development momentum, especially fur leather clothing (including leather clothing, fur clothing, fur clothing and Nei overcome fur clothing) exports have increased rapidly, and now it has become Shijiazhuang's largest export commodity.

As the main export market of these commodities in Russia, Russia has also maintained the status of the largest exporter of foreign trade in Shijiazhuang for four consecutive years.

It can be said that the export of Shijiazhuang's fur leather clothing is the export to Russia. If we want to consolidate the status of the first export commodities, we must consolidate our market in Russia.

1. The development of Shijiazhuang's fur and leather garment industry since the 90s of last century, with the fierce competition in the domestic market, the marketing direction of Shijiazhuang's fur and leather garment industry has been shifted to export oriented, and has gained a firm foothold in Russia.

Enterprises with a certain scale and strength mostly have offices or sales personnel in Russia, and then led by the Xinji municipal government. They also set up the Xinji fur goods center in Moscow, Novosibirsk and St Petersburg.

Thanks to the untiring efforts of many leather enterprises and the strong support of all levels of government, leather goods have become the most important export commodities in Shijiazhuang, with more than 1500 manufacturing enterprises and more than 100 thousand employees. The technology, production scale and product quality keep the advanced level in the country.

There are nearly 400 enterprises with export performance, accounting for 1/3 of the total number of enterprises exported.

In 2005, the gross leather clothing exports of the city amounted to 980 million US dollars, up 69.83% from the same period last year, accounting for 26.3% of the total export value of the city.

Among them, exports to Russia amounted to 950 million US dollars, accounting for 97% of the total value of its merchandise exports.

Two, with the strong promotion of Russia's trade with Russia, Shijiazhuang has formed a Xinji based export base for leather products, including Jinzhou, Wuji and other places, covering leather processing, leather tanning, fur processing and garment processing.

But in the process of development, there will also be some problems.

The current outstanding contradictions are focused on customs clearance, pportation, tax rebate and single market.

1, gray customs clearance, friction constantly.

Shijiazhuang leather goods export Russia mostly take package tax, package fee trade, pport by charter - based, the train as a supplement.

Because Russian import tariffs are too high, domestic enterprises generally adopt customs clearance companies that are related to local governments, and adopt low standard customs declaration or replacement of commodity names and other non-standard means to clear customs, so as to reduce customs clearance fees.

Its fatal weakness lies in the fact that the enterprise can not get the official customs duty certificate of Russian customs, so that on the surface, through the customs clearance of the company, "legitimate" entry into Russian goods may suddenly become "illegal". Once it is investigated, the goods are often checked without valid documents.

Since 1998, the clothing enterprises in Shijiazhuang have been repeatedly seized and sealed up by relevant departments of Russia, and even the charter flights have been grounded, resulting in a total loss of nearly 100 million yuan, and this problem is becoming more and more intense.

China and Russia have talked about charter flights many times during the high-level trade negotiations and meetings. Both sides have expressed their efforts to solve them, but no formal documents have been formed. Therefore, the Charter issue has not been fundamentally solved.

This will be a major hidden danger for Shijiazhuang's trade with Russia in the future.

2, cost growth and burden increase.

The first is the tax refund factor.

Although this year the state has adjusted the proportion of tax rebate burden and lightened the local burden, there are still many problems in its implementation.

Xinji enterprises reflect that in the process of tax rebates, whether or not the city's financial export exceeds the base number, all enterprises are required to pay 3% of the tax refund as a temporary loan. Enterprises can get the tax rebate. In fact, 3% of the tax refund tax that the local government should bear, and 3% of the tax refund that should be borne by the state, should be pferred to the enterprise by the enterprise itself.

Moreover, most enterprises in the year 2004 paid 15% of the provisional tax loan has not been refunded.

The two is the increase in freight rates.

Compared with last year, the export mode of Shijiazhuang to Russian exporters changed greatly this year, and the number of enterprises adopting railway pportation increased.

However, the freight rates of various modes of pportation have increased considerably, of which air freight (8 days or so) has increased from 7 to 8 US dollars per kilogram to 9 to 10 US dollars.

3, the market is single, and there are hidden dangers.

At present, the sale of Shijiazhuang's fur leather clothing is entirely dependent on exports, while 97% of its exports are concentrated in Russia, and the market is too single.

In 2005, Russia's leather clothing in the off-season was nearly one month ahead of schedule. A large number of garment export enterprises in Xinji have already closed down or reduced production ahead of schedule.

Moreover, the trend of the Russian market is changing. The old and low-grade leather clothing is no longer in demand, and fur clothing and other materials for fur and other materials are selling well.

As the main support of China's export industry, how to grasp the fashion trend and consolidate the Russian market has become a serious problem nowadays.

Three, several suggestions for the future export of fur leather garments. 1, enterprises should keep pace with the changing trend of the market, seize the upgrading of commodities, and consolidate the Russian market.

In the large number of leather goods manufacturers in Shijiazhuang, when the Russian leather market arrived in the off-season, most of them stopped or reduced production, but some of them still sell well.

The main reason is that market research is done well and products are marketable.

Therefore, if the relevant enterprises want to consolidate the Russian market, they must invest considerable energy and material resources to study and investigate the changes of Russian consumers' tastes.

With the rapid growth of Russian economy and the increase of consumption power, large leather enterprises have entered the Russian market. The leather industry in Russia is also constantly carrying out enterprise reform and expanding investment to compete with foreign leather goods.

According to the relevant experts predict that the Russian market to achieve saturation, at least four to five years.

During this period, who can meet the needs of consumers and whose products are marketable, who can occupy the market and consolidate the market?

At present, the export of leather goods in Shijiazhuang is mostly middle and low grade, while Turkey and other countries are mainly middle and high grade in the Russian market, with large profit margins.

Shijiazhuang garment enterprises should work hard to improve product quality.

In 2005, a large increase in high-grade fur and fur clothing illustrated this problem.

2, opening up a new international market and changing the single Russian market is the best way to prevent it.

As we all know, because of the non-standard way of trading with Russia, the risk loss of Shijiazhuang's fur and leather clothing exports will happen at any time. The market volatility is more obvious than before. In 2005, the Russian leather clothing market was ahead of the off-season, and the leather leather clothing only became serious after the four quarter.

For most companies that stick to the Russian market, these risks are often unforeseen, which is likely to cause backlog and loss of goods.

Therefore, if we want to develop the leather industry, we must do everything possible to develop new markets such as Europe and the United States while consolidating the Russian market.

In this regard, some enterprises in Shijiazhuang have already been ahead.

Some of them have set up offices in the United States and have done some basic work in establishing sales networks. Some have tried to cooperate with Korean businessmen to open up European and American markets. Some have hired foreign agents to expand sales channels and have achieved considerable sales results.

All relevant enterprises should pay attention to summing up the experience and lessons of the previous period, drawing on successful enterprises' approaches, expanding their horizons, and actively developing new markets.

In addition, in the market development, we suggest that the fur and leather enterprises in the US and Canada take the Russell Garth leather exhibition as a breakthrough to make more acquaintance with customers and actively strive for orders. For the EU market, it is suggested that new Eastern European countries or the former Commonwealth countries, which are newly joined or close to Russia, should be springboard to find the foothold and establish sales channels to enter the EU market.

3, the relevant 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 about one hundred thousand employees and a huge social responsibility.

The relevant departments of the government must conscientiously change their functions and improve their services.

First, we must strictly implement the state's tax rebate policy and effectively lighten the burden on enterprises.

For the time being, the export profits of leather garments are very low, and tax rebates are the key chips that determine the profit and loss of import and export enterprises.

Only by lightening the burden of enterprises can they survive and develop.

The two is to actively seek the support and support from relevant departments of the state and provincial departments on the issues of personal safety, property safety, cargo seizure and seizure, and strive to reach a formal cooperation contract with the Russian Federal Security Agency to ensure steady development of trade with Russia.

Three, we should actively organize enterprises to carry out market development.

To expand the scale of the Shijiazhuang fur and leather garment enterprises to participate in the Garth leather exhibition in the United States; organize enterprises to conduct market research in the original Eastern European countries, and take measures to improve the market.

Four, the functional departments should actively coordinate and solve the problems encountered by enterprises in the course of production and operation.