Smell Business Opportunities: Tariff Differentials Bring Profit Margins.

From alone to Russia, to "gray customs clearance", and now to form a chamber of Commerce, the 45 companies are investing in Russia together, talking about the hardships of this road. The mood of Cai Jianlin, chairman of Ruian Russia's Wusu Rees City Jixin industry and Trade Co., will still have the feeling that "the storm is crossing the border."

"Fortunately, it's all right now. Every month we go to Russia for 35 days."

He said.

After taking root in the black land of usurusk in Russia, in December 2010, Cai Jianlin and a group of local "Wenzhou Shoe Boys" who had invested in the region established the Wenzhou chamber of Commerce in the Far East of Russia and were elected president.

What these companies are exploring is a new mode of small and medium enterprises to participate in the "one belt and one way" overseas investment: "go out".

This year, the chamber of commerce also established the Russian "one belt and one road" business legal service center, which provides legal services for all kinds of foreign-related investment for local Chinese enterprises.

Smell business opportunities:

Tariff gap brings profit space

In 1997, Cai Jianlin, more than 30, began to trade between China and Russia and sold Wenzhou shoes to Russia.

In February 2000, during the handling of a logistical loss settlement incident, the Russian logistics company boss Hill Gaye guy invited him to visit Vladivostok.

In a few days of conversation and understanding, with the wisdom and shrewdness of the Wenzhou people, Cai Jianlin sniffed the business opportunities on this vast black land -- its export.

It is better to export semi-finished products to Russia after processing.

At that time, Russia's light industry was almost a blank, and the export of Wenzhou shoes was very popular to the local market, and the demand for it was in short supply.

Only twenty yuan shoes can be sold in the country, the wholesale price in Russia is nearly 80 yuan, and the retail price can be sold to more than 200 yuan.

Not only that, Cai Jianlin also found a bigger profit margin: changing "made in China" to "made in Russia" is a great market cake.

"Simply speaking, it is a tariff to collect goods shipped to Russia for sale at home.

While the semi finished products of the same quantity are shipped to Russia, they are subject to tariffs, and the cost of a pair of shoes is roughly 2 dollars.

He said.

After returning home, Cai Jianlin immediately bought 2 PU injection molding shoe assembly lines and shipped them to Heilongjiang Dongning port on the Sino Russian border.

From helping Russia establish

And the customs code of semi-finished products, to the processing of shoemaker's labor visa, after 3 months running in, the first step of investing in Russia is in this difficult exploration.

In August 2001, Cai Jianlin and 3 other WWEN merchants invested about 20000000 yuan in Russia's Wusu Rees City, rented 20 thousand square meters of factory buildings, recruited more than 300 workers from China, and set foot on the road of running a factory in a foreign country.

Tuan Tuan Zhai:

Gather together to warm up business enterprise

In October 2005, Cai Jianlin moved the enterprises into the usurusk economic and trade cooperation zone and took root in Russia.

Usurusk economic and trade cooperation area is located in the Russian Far East coastal border area, Wusu Rees city. It is organized and implemented by Heilongjiang Jixin industry and trade group and Wenzhou Kangnai group and Huarun company co founded Conway International Investment Co., Ltd.

The whole park covers an area of 2 million 280 thousand square meters, with a planned construction area of 1 million 630 thousand square meters, which is divided into production and processing area, business district, logistics storage area and life service area.

The establishment of the usurusk economic and trade cooperation zone has produced a strong magnetic field effect.

Engaged in Ruian

Xu Shangyao, chairman of the xingte Footwear Company Limited, also joined the team that invested in Russia.

In 2007, xingte Shoes Co., Ltd. invested about 4600000 US dollars in Russia, rented more than 5000 square meters of factory buildings, and set up 2 production lines for injection shoes.

In the next few years, more than 40 local shoemaking, knitting and other industries in Ruian began to build production bases in the usurusk economic and trade cooperation zone, with a total investment of about 2000000000 Yuan and jointly developing the Russian market.

Cai Jianlin said: "at present, the development of enterprises in the whole park is relatively smooth.

The annual output value of 45 enterprises is about 1000000000 yuan.

And these enterprises will buy a lot of shoe material and shoes from Ruian and other domestic markets every year.

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"Compared with overseas investment behavior in Europe, America, Southeast Asia and Africa, the most obvious feature of Ruian enterprises investing in Russia is holding together."

Xia Minru, director of the Department of foreign economic cooperation of Ruian Commerce Bureau, said.

It is difficult for a single company to solve problems, which are jointly undertaken by many enterprises.

Xu Shangyao gave an example: in the early days, many shoe manufacturers of Wen Shang were difficult to repair once they were damaged, because they could not find any accessories nearby and had to stop working for many days.

Later, there were many shoe factories. Everyone bought a unified machine. Anyone whose machine broke down could borrow money from each other.

Large quantities of procurement, manufacturers of shoe making machines have sent after-sale Commissioner Service to make after-sale maintenance no longer a problem.

Establishment of chambers of Commerce:

Jointly resist market risks

This is a tangled market for the Wenzhou enterprises that are breaking through the Russian market.

First of all, this is a "hungry" market. The blank of the light industry makes it hungry for food, so long as it goes in, it is not afraid of selling. However, it is also a market of uncertainty and uncertainty.

Beginning in the early 90s of last century, there was little rest.

In response to the unpredictable market environment and political risks of foreign countries, the Wenzhou chamber of Commerce in the Far East of Vladivostok, founded in December 2010, raised a "protective umbrella" for the warm traders of Baotuan.

For Wenzhou enterprises investing in Russia, the function of the chamber of commerce is first an information base, and the chamber of Commerce set up an office in Moscow's industrial building, next to Russia's Federation of industry and commerce.

"There will be all kinds of Russian investment information, and our chamber of Commerce will take the initiative to collect it, and then send it to member enterprises."

Cai Jianlin, who was elected president, said that the chamber of Commerce has also established ties with Chinese embassies and consulates in Russia.

Every day, the consulate will send Russian daily economic dynamic information to the chamber of Commerce, covering all aspects of policies, markets, customs, and so on, and evading many potential risks to the enterprises in Russia.

The establishment of the chamber of Commerce has also provided a green channel for the local businessmen to invest in the city, so that they are no longer in the "unknown environment". "Nowadays, there are chambers of Commerce to solve all kinds of affairs of enterprises. In addition to big projects, we need to build up our own small projects."

Cai Jianlin said, just like an annual quota of employment, in the past, every enterprise had to travel to Moscow by itself, and it was hard to make money without time and money.

Today, all chambers of commerce can be handled by the chamber of Commerce, together with business reports, trademark registration, tax payment and other matters.

The pressure from pportation, production and wages of workers is difficult for enterprises to invest abroad alone.

Establishing a chamber of Commerce, while resisting market risks together, has also gained more market discourse power for member enterprises and relieved the operational pressure of enterprises.

In response, Xu Shangyao said with deep experience: "our shoemaking materials are shipped from the mainland, and the freight cost is very high.

Ever since the chamber of Commerce, every year, the chamber of Commerce has organized enterprises to negotiate freight rates.

My company can save millions of yuan in one year.

With the experience of investing in Russia, Xu Shangyao, 58, told reporters that he is also preparing to invest in another production of latex products in Thailand this year, because the raw materials and main market of latex products are in Southeast Asia.

Embrace the sea

Release cluster effect

How can SMEs improve their ability to "go out" and share in the "overseas market"? Participating in the "one belt and one way" approach to share the overseas market? The innovative mode of the 45 warm enterprises will probably be able to draw lessons from and enlighten many small and medium-sized enterprises who want to go to sea.

The "one belt and one way" has brought great room for international capacity cooperation.

However, there are many opportunities in the international market, but risks are everywhere.

In view of the limitations of various factors such as financial strength, bargaining power and bargaining power, small and medium-sized enterprises, especially small and micro enterprises, are often in a passive situation. It is difficult to get the right to speak in the international market like big enterprises.

If we want to be strong and big, small and medium-sized enterprises rely solely on their own strength.

Therefore, in the market expansion, we should adopt a collective way of fighting together and exchange information with each other so as to avoid risks and enhance the immunity of enterprises against risks.

At the same time, through tug of alliance, we can play the industry cluster effect, "learn from each other's weaknesses" to develop together, reduce the operation cost of the monomer, and achieve win-win results.

In the face of the current international market opportunities, enterprises can embrace and attack them. This idea is a useful choice.

And the superimposed effect brought by the market will not only be as simple as 1+1 equals 2.

The real map of Russia's usurusk economic and trade cooperation zone and the workshop corner.