Russia Changes Sales Mode, Local Brands Begin To Rise

There are some sports venues for the 1980 Olympic Games in Moscow. Many of these venues are now built. clothing Market. Here, Chinese clothing (000902, stock bar) has a huge price advantage. Garment export has always been China's traditional export to Russia. Although the amount has lagged behind electromechanical products in recent years, it still ranks among the top exporters of China to Russia.

It is worth noting that the Russian apparel market is changing in recent years. Because Chinese enterprises can not shape brands for various reasons, some Russian local brands have seen their strengths and weaknesses, and are rapidly rising. Professionals believe that Chinese enterprises should be more familiar with the Russian market and attach importance to the establishment of a localized management team. Investment Processing semi-finished products in Russia is the only way to get out of the predicament of no brand.

　　 The changes here are quiet.

Our company is specialized in selling children's clothing to Russia. Currently, its sales in the Russian terminal market are over 600 million yuan, and it is one of the most important Chinese producers in the Russian children's wear market. Zhao Zhiyan, the head of the company, began to do Russian clothing business in 1997. It has been 15 years now.

Zhao Zhiyan believes that since 2008, after the world financial crisis, great changes have taken place in the Russian clothing market. Russian enterprises begin to learn international clothing enterprise And they began to establish and control clothing sales channels.

Previously, Russian clothing sales had a special feature. No matter how well-known the brand was, sales were not always based on specialty stores, but by stall. Moscow Fisk market is a place where the middle class in Moscow can afford to spend. Here, some famous brands in Europe and America, such as famous clothing brands from France and Spain, are mostly sold on small stalls with an area of only six or seven square meters.

Zhao Zhiyan recalled that after 2008, OGGI, the Russian local brand, began to introduce clothing stores into the local market. Now, OGGI has been well known in the Russian apparel industry. OGGI is a typical light company designed by Russian local clothing industry. Russian investors only firmly control the sales channel, and the production of products is basically outsourcing. The company adopts its own mode of deciding clothing design and OEM production by Chinese companies. Specifically, the Russia Company sent buyers to buy fashionable models in Europe and sent people to China to agree on production matters. Sometimes, for convenience, it will also directly adopt the design of Chinese enterprises. It may take a look at the style of a Chinese company, and directly negotiate the OEM price with this company, then put it on the OGGI brand and sell it in Russia.

"OGGI model has been very common in China, but because of the low level of competition in the Russian market, it has been a success." A garment industry personage told reporters that another Russian local enterprise producing T-shirts also relied on this mode to take a firm foothold in the market. For example, he said that the price of the T-shirt is about RMB 49 yuan. The reason why it is so cheap is entirely dependent on Chinese manufacturers for its OEM production. {page_break}

　　 Be really familiar with the market.

"Ash pass certainly has an impact on Chinese enterprises in the Russian market, but Chinese enterprises do not make brands. What is more important is that Chinese enterprises are not really familiar with the Russian market." Zhao Zhiyan, for example, saw a Prada store in Moscow, more than 200 square meters, but not far from the store. There was even a "exclusive store" of less than 8 square meters, which also sold Prada. If in China, people doubt that the latter is a counterfeit shop and do not want to go shopping, but in Moscow, the business of Prada store which is less than 8 square meters is not worse than 200 square meters. This shows that Russians are different in thinking about choosing clothes from China and even in most parts of the world.

"The Chinese government even gives foreign capital enterprises super national treatment, but in many Russian States, it is impossible for foreign-funded enterprises to get preferential policies with foreign investment status." Liu Huaqin, director of the Eastern European Chamber of the Ministry of Commerce, commented.

Zhao Zhiyan believes that if Chinese enterprises want to succeed, the best way is to borrow power, that is, joint venture with Russians and localization of management team. "If you send Russian staff at an exhibition, he will receive much more cooperation intentions than Chinese employees. If the management team is Russian, the chances of success will be even greater." Zhao Zhiyan concluded that Chinese enterprises invest in Russia, and many of them are thinking of making money very quickly. In fact, investing in Russia and building brands is also important for being patient and familiar with the market and not eager for quick success and instant benefit.

At present, it is still difficult to solve the problem of "ash pass" in a short time. In order to reduce tariffs and make customs formalities regular, experts suggest that Chinese enterprises can export semi-finished products to Russia, and then set up processing plants in Russia to process semi-finished products into finished products. Due to the manufacturing process in Russia, tariffs can be reduced to a large extent.

China's leather shoes manufacturer Kangnai group has invested in Russia to open an industrial park to attract leather shoes from Wenzhou. According to the formal customs clearance, a pair of half finished leather shoes export to Russia only 5% of customs duty, and the finished shoes tariff is as high as 15%.

At present, Zhang Qun, the chief representative of the lotus shop in the Chinese mall, which is being built in Moscow, says that in Moscow's leather shoes market, a company from Wenzhou, China, did a very successful job, because the factory set up factories in Moscow, and found a Russian enterprise to be a joint venture. "I have been doing business in the Russian market for 20 years, and now many Russia Company do not go to China to get the goods and get goods from us," said the head of the shoe company when talking about their success. "Our products have been recognized in many parts of Russia."