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    Us And European Sanctions Against Russia "China'S Opportunity" Has Not Been Blowout As Scheduled

    2014/8/21 11:30:00 10

    US EuropeSanctionsRussiaChina Opportunities

    Here world

    Clothing and shoes

    Xiaobian of the network to introduce us and Europe sanctions against Russia: "China's opportunity" has not blowout as scheduled.

    In March this year, the United States and the European Union formally launched sanctions against Russia.

    Subsequently, the Russian government also adopted a series of anti sanctions measures, and the friction between the two sides intensified.

    The field of textile and clothing was also affected. First, the German sports brand Adidas decided to close several Russian branches and reduce the increase in store plans.

    Adidas has more than 1000 outlets in Russia, with annual sales of 1 billion euros, accounting for about 10% of the total.

    Reducing the Russian market will cause a big blow to the brand.

    Subsequently, the British fashion brand New Look announced the suspension of its expansion plan in Russia.

    This year, New Look has just deployed a new development plan, and Russia is one of the 4 markets that it is preparing to focus on.

    The withdrawal of business in Europe and America has led some international media and domestic media to speculate on the "opportunities China will get from it".

    But in the eyes of Chinese businessmen who are engaged in trade with Russia's textile and clothing industry, there is another scene. The Russian market is not as good as it looks.

    Fur demand decline

    Some media have pointed out that with the expansion of the scope of anti sanctions, fur as an important import commodity of Russia may be included in the list, which will benefit Chinese fur export enterprises.

    However, in the view of Jing Wong, chairman of Wendeng Jin Xin fur Co. Ltd., it is far from good.

    She said in an interview: "

    Europe and America

    This situation with Russia has led to a more recession in Russia.

    Our company's main customer groups are from Russia. In previous years, this time was the peak season for fur clothing sales. Many Russian customers had come to stock up for the winter. This should be our busiest time, but this year the volume of turnover has declined significantly, half the previous year. "

    Because of the cold and long winter in Russia, fur clothing is a necessity in the eyes of Russians, and this is also a sign of their wealth.

    Most women in Russia have many fur, and even many consumers loan to buy fur.

    Such a consumption concept has prompted Russia to become one of the largest fur consumers in the world, with sales increasing at about 25% per year.

    This year, however, things seem to be changing.

    Jing Wong not only received a reduction in the number of orders, but also reduced the price per sheet.

    She said: "customers have repeatedly asked us to cut prices, these are old customers, they repeatedly stressed that the current economic situation in Russia is not good, we can only make concessions."

    In order to keep orders, Chinese exporters can only bear the burden of reducing profits.

    Jing Wong also said that the biggest difference between Russian customers and other customers with larger demand for fur is that they have higher quality requirements, such as the grade of fur, the quality of lining and the degree of meticulous work, which are higher than those of consumers in Central Asian countries.

    Now, however, the sluggish economic situation has forced them to abandon high-quality products.

    At this time last year, customers from Russia also asked for better quality products when they came from Jin Xin fur, but this year they turned out to be: hope that the products will be cheaper and the price will be cheaper.

    Buyers cautiously reduce stock

    Ma Weidong, who ran a few years of shirt trade in Ya Po Road, was helpless. Most of his foreign trade brand VEDONNI came from Ukraine and Russia.

    At the beginning of the year, the Ukraine riots had caused a lot of losses to VEDONNI. Then, the fierce competition between Russia and Europe and America made Ma Weidong's business in trouble.

    He said: "it is said that the Russian market is undergoing a huge reshuffle, which is a good time for China to fill the market gap.

    But as far as my personal experience is concerned, there is no real growth now, and I can't see how it will develop in the future.

    Now the feedback from our customers is that the Russian economic situation is getting worse and worse, which makes their sales situation bad.

    The unfavorable sales in the Russian market directly led to a sharp reduction in the number of orders and the decline in the unit price of Ma Weidong.

    The only thing that can satisfy him now is that the number of customers has not changed much. This shows that old customers still approve of VEDONNI products, but all customers are very cautious when placing orders, and no one wants to carry too much inventory.

    In this regard, Ma Weidong can only be forced to choose to do less or not even do spot, in the face of changes in the international situation, small traders appear particularly weak.

    VEDONNI's products belong to high-end products in Russia. When asked whether they want to adjust their product lines and produce low-end products to boost sales, Ma Weidong said: "even though making adjustments, it doesn't make much sense. Unlike fur and other large apparel products, the profits of shirts have been very thin, and there is not much difference between middle and high grade and low grade profits.

    Now, the overall economic situation there is not good, except for necessities, it should be said that any product is not good enough to sell.

    Moscow's wholesale trade is hard to grow.

    Sun Weishun, who has been doing wholesale clothing trade in Russia every year for 1/3, is currently doing business in Moscow and understanding local trends. His store is set up in one of Moscow's largest wholesale markets.

    According to Sun Weishun, tens of thousands of Chinese businessmen are gathered here, and clothing products from China account for 70%.

    Other products are from Turkey, Poland and so on.

    "In the short term, the proportion of Chinese products will not increase by 70%.

    Although the relationship between Europe and the United States is rigid, this is still a matter of national level. It will have an impact on large enterprises and important economic sectors, and has little impact on the retail trade of daily necessities, clothing and so on.

    There are many wholesalers from Eastern Europe who are not actively withdrawing or forced to leave Moscow, and no one boycott their products. Everything is normal.

    Sun Weishun said, "it is hard to see how many opportunities China has now. The main reason is that the Russian economy is shrinking and the purchasing power is not strong.

    But if this is a protracted war, it is possible for Chinese goods to find more business opportunities. "

    Sun Weishun also said that another reason for the greater development of China's clothing products in the Russian market is the rising cost of domestic products, which makes the price advantage of products no longer obvious, and the Central Asian countries such as Kyrgyzstan are emerging from the low price products in the market.

    In addition, Russia's local clothing industry is also gradually rising. Although about 50% of its products still come from China's Ya Po Road, the Russians are in the high-end business circles.

    For example, another large clothing wholesale market in Moscow, Nicky, is mostly owned by Russian local businessmen.

    They sell slightly higher products, Chinese traders are still mainly low-grade products, lost the price advantage, it is difficult to large-scale expansion.

    Therefore, in China's clothing export.

    Trade

    There are only two ways in front of us. One is to control costs, the other is to compete in the middle and high-end fields. Two

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