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    Russia Has Entered The Market In 8 Months, And The Export Of Sichuan Shoes Still Has Room For Development.

    2012/6/11 10:08:00 16

    Russia'S Accession To The WTOSichuan Shoes ExportsForeign Trade

    Russia's accession to the WTO in 8 months will create a more favorable situation for Sichuan enterprises in terms of import and export of raw materials, financial environment and tariffs.

    Apart from the initial export of Sichuan shoes, Kawa Cha, Sichuan liquor export and Russian tourism all have room for development.


    On June 7th, Russian Prime Minister Medvedev said Russia would complete its accession to WTO in July and formally become a member of the WTO in early August.

    After joining the WTO, Russia will lower tariffs, and the average tariff level in Russia will be reduced by nearly 1/3 over the next three years.

    The newly elected Russian President Putin began his first visit to China in June 5th, and signed 11 agreements with China, including tourism, nuclear power and industrial sectors.


    In 2011, bilateral trade between Russia and China reached a record high of 83 billion 500 million US dollars (about about 520000000000 yuan).

    China has become Russia's largest trading partner.

    Russia's medium-term goal is to achieve bilateral trade volume of 100 billion US dollars in 2015 and US $200 billion in 2020.

    What opportunities will Chinese enterprises bring to hundreds of millions of dollars of trade space? How much can Sichuan enterprises get from it?


    Market and economic data: foreign trade exceeded 500 million US dollars


    Russia has always been one of Sichuan's important trading partners, and Sichuan has nearly 600 business contacts with Russia.

    The reporter learned from the Sichuan Provincial Department of commerce that in 2011, the total volume of import and export trade between Sichuan and Russia reached 573 million US dollars, ranking eighteenth in our province's trading countries (regions), an increase of 25.3% over the same period last year.

    In the 1-4 months of this year, the total volume of import and export trade between Sichuan and Russia reached US $137 million, an increase of 11.2% over the same period last year.


    Zhang Yan, deputy director of the Chengdu Foreign Trade Bureau, told reporters that with Russia's accession to the WTO, the market will be more open and internationalized, and import and export trade will be more standardized.


    The import and export commodities of Sichuan and Russia have strong complementarity.

    At present, Sichuan's main exports to Russia include drilling equipment, televisions and other mechanical and electrical products, footwear and textile clothing.

    The proportion of electromechanical products such as televisions is 40% and footwear accounts for 37%.

    Sichuan imports from Russia mainly pulp and paper products, rubber and products, metal products, mineral products, pulp and paper products accounted for up to 70% of the proportion.


    Development space: Russian market has strong purchasing power.


    "As long as Chinese enterprises concentrate on the market and make marketable products, Russia is definitely a good market, with strong purchasing power, large sales volume and high profits."

    This is the evaluation of the Russian market by Han Zhizhong, director of Southern China International Logistics Co., Ltd., which has carried out import and export trade with Russia 11 years ago. Over 30% of the footwear products exported to Russia are Sichuan shoes.

    For example, he said, a pair of shoes sold for 100 yuan in the country could sell for 100 dollars in Russia.


    He said that some Chinese enterprises did not attach enough importance to the Russian market.

    Russia's light textile industry is weak. It has strong rigid demand for light goods such as daily necessities, and has a good market potential.

    According to a survey, 78% of Russian clothing market structure came from imports in 2010.

    {page_break}


    Present situation


    Three pairs of Russian women's shoes have two from Chengdu.


    Footwear is an important commodity for Sichuan's exports to Russia.

    People often like to say a word: every three Russian women wear shoes on their feet, one from Chengdu.


    "Russia is a traditional large market for the export of Sichuan shoes."

    Yesterday, Liu Qiongying, President of the Sichuan footwear import and Export Chamber of Commerce, told the Huaxi Metropolis Daily that from the 90s of last century, Sichuan shoes began to sell to Russia.


    Sichuan shoes have advantages in R & D, comfort and cost performance. Many shoe factories are also growing up in the Russian market.

    Li Min, who is in charge of foreign trade in Chengdu AI min leather products Co., Ltd., frankly speaking, about 40% of the shoes exported to Russia.


    Russia's accession to the WTO makes more shoe enterprises full of expectations for the Russian market.

    Wu Xifan, general manager of the Chengdu Yi Bai Lan Shoes Co., Ltd., Russia's accession to the WTO will create a more favorable situation for Sichuan enterprises in terms of raw materials import and export, financial environment and customs duties.

    "We may consider the Russian market."


    High tariffs, squeezing profits, fewer enterprises going out


    However, many shoe companies have mentioned that Russia's high tariffs have squeezed the profit margins of exports, so that the phenomenon of "gray clearance" evading tariffs is very common at the end of last century.

    Liu Qiongying introduced that in the past, domestic shoe enterprises exported to Russia, besides paying customs duties, they also had to pay VAT.


    Although Chengdu's exports of shoes to Russia are very large, but in Moscow Greenwood China World Trade Center center responsible person seems, "Chengdu women's shoes to go out more products, but fewer enterprises to go out."

    Most of the women's shoes in Chengdu are exported to Russia after being subcontracted by coastal traders. Sichuan shoes enterprises that are really rooted in Russia and operate independently are few.


    The official said that the Moscow Greenwood China World Trade Center center is China's largest trading center in Russia, and has come to Chengdu for investment promotion, but many shoe manufacturers are more willing to make factories locally.

    He believes that as the latest market in Europe, there are many international exhibitions in Moscow, and Sichuan enterprises can open channels for exporting to Europe through the Moscow market.


    Business opportunity


    Sichuan tea sold to Russia?


    In addition to traditional commodities such as daily necessities, the demand for high-tech products in Russian market is increasing, and procurement is more diversified, including small household appliances, motorcycles, auto parts, trucks and so on.


    This means that Sichuan enterprises have room to expand new business opportunities.

    Han, for example, has received more and more attention in recent years in Russia.

    A Russian businessman spent millions of dollars and bought a complete Chinese teahouse in Guangzhou.


    Relevant person in charge of China World Trade Center Greenwood center in Moscow also revealed that "at present, our center has established tea enterprises in Hunan and Fujian."

    At present, the demand for tea in the Russian market is mainly middle grade tea.

    {page_break}


    Sichuan liquor seized the vodka market?


    Russia is a drinking country, and vodka is a daily "drink" for Russian men.

    But unlike Vodka's high purity spirits, Sichuan liquor is more mellow and thick.

    The reputation of "Sichuan wine is the best place in the world" has also spread to Russia.

    At present, however, it is still very difficult for Russian shops to buy Sichuan liquor.


    "In fact, a few years ago, Russia's bigger wine dealers looked for us. They liked Sichuan wine."

    The head of Wuliangye import and Export Co., Ltd. said, but because of the Russian government's efforts to strengthen the regulation and control of alcohol production and marketing, the "prohibition order" has been popularized, which has brought challenges to the export of Sichuan liquor.

    In addition, due to the control of alcoholic products and the protection of vodka, the share of imported liquor products is squeezed. Therefore, it is still necessary for Chinese liquor to enter Russia in large quantities.


    Is Russian tourism expected to come to a climax?


    Apart from commodity exports, tourism between China and Russia is also expected to open up a new prospect.

    Putin's visit to China also signed the memorandum of understanding on the further expansion of tourism cooperation between the People's Republic of China National Tourism Administration and the Russian Federation Tourism Commission.

    Will Sichuan tourists travel to Russia for a small climax?


    Yesterday, Wang Tao, deputy general manager of Chengdu Overseas Tourism Co., Ltd. said that the Chengdu Russia line was not popular at present, and it was issued once a month, about 20 people each time.

    "Mainly visa is more troublesome, many free travel tourists almost can not sign."

    Wang Tao said that there are few flights to Russia, which can only be pferred from Beijing and Xinjiang, and even to the peak season.


    The Russian travel agency's external promotion is not very positive. They are not familiar with the Chengdu market, and the Chengdu market does not know much about Russia.


    Wang Tao said, in fact, Russia's tourism resources are good, and the price of local reception is not high.

    "We are still very interested in Russia. The key is whether the next visa process can be simplified and whether the flight can be opened?"


    On the day of signing the memorandum of understanding on tourism between China and Russia in June 5th, Wanda Group also invested $3 billion in the pan sea investment to develop the tourism industry in the north Caucasus.

    Wang Jianlin, chairman of the company, revealed that every year in the two quarter of summer and autumn, China's flights to Irkutsk (the city of Lake Baikal) were full.

    "Perhaps the first investment of Wanda in Russia is the resort of Lake Baikal."

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