Chinese Textile And Leather Enterprises Accelerate The Opening Of The Russian Market

There is a great deal of complementarity between China and Russia in the field of clothing trade. In competition with other garment exporting countries, Chinese clothing with high quality and low price is in line with the needs of most middle and low income consumers in Russia. Experts suggest that Chinese clothing enterprises should focus on improving the quality of products, constantly expand the brand effect, and develop scientific marketing strategies, integrate the advantages of industrial resources, and speed up the pace of opening up the Russian apparel market. The demand for Russian clothing market is increasing. In recent years, with the improvement of the economic situation, the disposable income of Russian residents has been increasing. In 2000~2007, the real income of Russian residents increased by 9%~12% per year. Last year, the average monthly wage of Russian residents reached 13801 rubles, or $545. The improvement of residents' income level has made the Russian residents have the following three characteristics in clothing consumption: the clothing market is showing an overall upward trend. Last year, the Russian clothing market reached $31 billion 300 million, and clothing consumption per capita was US $219. Sportswear is the fastest growing garment in the market in the year, an increase of 28.9%. With the increase of the baby birth rate, the market size of maternity dress is also expanding. The sales volume in the past two years has reached 112 million US dollars, while the growth rate of children's clothing is over 25%, and the per capita consumption of clothing is 9408 rubles. The development of middle and top grade clothing consumption market is accelerating. The consumption groups of Russian clothing market can be roughly divided into four levels: the high-end consumers who earn more than 2000 dollars in monthly income account for about 4% of the total population, the clothing consumption tends to be internationally famous brands, the middle income consumers with monthly income of 600~1000 dollars occupy the 20%~25% of the total residents, the consumption trend tends to be the brand clothing that is sold in the big shopping malls and supermarkets, the mass consumers with monthly income of 60~200 dollars, the clothing with moderate price in the consumption market, and the low income consumers who earn less than 60 dollars in the month occupy the 20%~30% of the total population, and the clothing with low consumption tendency and low price. With the continuous improvement of the overall income level of Russian residents, the number of middle and high income residents has increased in recent years, and the number of low-income residents has decreased. Accordingly, the structure of clothing consumption market is also changing, and the development of middle and upper grade clothing consumption market is accelerating. Consumers are more and more demanding on clothing styles, fabrics and workmanship. With the rapid increase of income and consumption ability, Russian residents are increasingly demanding higher quality clothing, and even lower prices of low-grade clothing are not enough. Take the low-grade pigskin leather goods exported to Russia for example. In the past few years, sales volume was over 5 million per year, accounting for 70% of leather export. But in recent years, the top grade leather products made of imported high-grade cattle and sheepskin leather are getting better and better in Russia. The sales of low-grade pigskin leather goods have been shrinking again and again, even though the sale price is still not good, many manufacturers producing low-grade pigskin leather goods suffer heavy losses. Chinese clothing is embarrassed in the Russian market. Zhu Nanping, a researcher at the Northeast Asia Research Institute of the Heilongjiang Academy of Social Sciences in Moscow State University, who has worked in Russia for many years, thinks that the clothing exported by China to Russia has not created the image of "made in China", and has not produced a well-known company and famous brand in the Russian clothing market. Chinese clothing products are only a cheap "big road" for sale in the Russian arena. They are a helpless choice when people earn very low incomes during economic difficulties. Because of the low price, Chinese clothing exports to Russia do not have a lot of total profits, and the apportionment to each export garment is even more modest, usually selling 10 thousand pieces of "big cargo" to earn 50 thousand dollars. The lowest price of the top Western clothing exported to Russia by EU brands is $500 per piece. Conservative estimates suggest that the profits of every high-end suit should be no less than $100. With the increasing income of Russian residents, their demand for high-end clothing has increased rapidly. According to the survey, Russians in 10%~15% have the ability to buy brand-name high-end clothing. At the same time, Russian residents have less and less demand for cheap and low-grade clothing, especially the Russian government has intensified its efforts to crack down on "grey customs clearance" in recent years, and has made various restrictions on Chinese businessmen's activities in Russia from legislation. Therefore, the export situation of Chinese clothing to Russia is not optimistic. The main competitors of China's garment enterprises in Russia are Russian local garment manufacturers and other foreign suppliers. Understanding the strength and characteristics of their competitors is very important for our enterprises to make rational strategies to open up the Russian market. Chinese enterprises should take the road of brand quality. There is a great deal of complementarity between China and Russia in the field of clothing trade. Chinese clothing with high quality and low price is in line with the needs of most middle and low income consumers. At present, the quality of Chinese clothing exported to Russia has been greatly improved, but Chinese clothing enterprises are bound to face strong challenges from other garment exporting countries. To this end, Zhu Nanping suggested that Chinese enterprises should seize the opportunity to continuously improve the brand effect by improving the quality of products, and develop a scientific marketing strategy to integrate the advantages of industrial resources and speed up the pace of opening up the Russian apparel market. To maintain the advantages of "quality and low price" for Chinese clothing. Win the trust and favor of the vast number of middle and low income consumers in Russia with high price performance ratio, and gradually establish the brand superiority of "good quality and low price" of Chinese clothing products. Enterprises should pay attention to the packaging and marketing channels of products, and improve the quality of Chinese clothing products in the minds of Russian consumers from the aspects of product packaging and sales places. For example: enter the large clothing market and clothing stores for retail; the same quality products in price to other countries imported products to maintain price advantage. Continue to improve product quality and get trust from Russian consumers. Starting from the fashion changes in fashion styles and fabrics, we pay close attention to the development and changes of fashion trends in the world and Russia, grasp the market demand change and fashion development trend of consumers in a timely manner, and strictly control the quality of products, such as product design, processing, packaging, transportation and sales, so as to win the trust of the vast number of Russian consumers with excellent quality. Strengthen publicity and create brand effect. Relying on all kinds of modern media, to build brand image as the core, and strengthen the advertising campaign. Under the circumstances of allowing the cost accounting, we can choose the right place to set up a brand image shop, or set up a special counter in the large Russian clothing market, and display and sell our famous brand clothing. Strengthen cooperation with Russian local enterprises and reduce operational risks. Fully integrate and utilize all kinds of resources in Russia, fully tap the business potential of Russian partners and distributors, and make good use of the resources of Russian distributors and collaborators in terms of connections, capital and goodwill, so as to reduce the operational risks of enterprises in the Russian market.