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Russian market to further develop strategies and policies

An accurate grasp of the particularity of the Russian market Russia's economic system has obvious features of transition economies, the market environment is different from the previous planned economy, but also quite different from the mature Western market economy, with strong specificity. To (A) the market potential, strong radiation First of all, Russia is a huge import market of consumer goods, in 2001 Russia imported 53.4 billion U.S. dollars, if the importer to take into account tax and value-reporting of imports, the imports is higher than the statistics. As Russia's economic structure is not balanced, heavy industry and light industry lagging behind more developed, need to import large quantities of consumer goods each year, so its imports of food, textiles, household appliances, daily necessities, a considerable proportion. These are the China's most internationally competitive goods. Second, to further increase the potential of consumer goods imports. Russia's transition since the economy has experienced a major landslide, after nearly three years of recovery, its GDP still reached only half of the former Soviet Union, but Russia is rich in resources, labor, high quality, technological strength, strong manufacturing base, therefore, its economic growth potential, because of the economic structure is difficult to do for some time to reverse, therefore, with its economic recovery, per capita incomes, increasing the potential for greater imports of consumer goods. Again, the Russian market and strong radiation. As with Eastern Europe, the traditional relationship between the CIS, Russia, Eastern Europe and the CIS market is entering an important springboard for the market to open up the Russian market, will lead to the development of Eastern Europe and CIS markets. (B) of the multilevel nature of the demand recent years, the rapid expansion of the Russian per capita income gap, a sharp differentiation of the level of consumption, so that the Russian market was showing the multilevel nature of demand, the demand for imported consumer goods from the view of both produced by the developed countries of Europe and other brand-name clothing, cosmetics, household appliances there is demand, there are a large number of low-income needs of low-priced low-end products to sustain life. Early trade with Russia, China and Russia a large number of low-end products into the market, both the Russian market demand factors, but also in China's industrial structure, production capacity of huge low-end consumer goods, needed to find a way out why. Multilevel nature of this demand will be for quite some time maintained a considerable period of time in the future, China's exports to Russia a large number of low-end consumer goods will not be a fundamental change in the pattern. At the same time, China's development a priority in the Russian market is to enter the Russian luxury goods market. (C) the primary market growth in the transition period of Russia, the traditional planned economy system was severely damaged in circulation, and circulation system to adapt to market economy has not been established, the market is still in the early stages of development. Main features: first, credit is low. China-Russia bilateral trade, Russian importers without trust, payment default or repudiate things have occurred; second, to adapt to modern International Trade means of payment is not sound. Russia's early transition, mainly in the barter-based bilateral trade between China and Russia. Later, for speeding up Russia's transition to the cash consideration of trade, barter trade restrictions imposed policies. However, in spot trade, the bank credit is low, the developed market economies in the West commonly used letters of credit and other means of payment in Russia has not been given the development of Sino-Russian bilateral trade in a serious shortage of means of payment, not only increased export costs, and increased exporters financial risk; Third, the Russian lack of scale, credit distributors. Exports of developed countries in the West, my business mainly with large-scale traders or distributors to do business, not only can take advantage of existing distribution channels to market directly to the Western developed countries, and the collection of lower risk. But Russia is different, in the transition process, the planned economy, the Central Plains and some state-owned wholesale and retail enterprises or disintegration, or shrinking business, the new large-scale, very few distributors of credit higher, therefore, exports to Russia , the difficult markets of developed countries so as to develop western rely ready of the distributors, in many cases have to go to Russia to set up their own distribution business. Research group in the research found that many companies engaged in trade with Russia has its own institutions in Russia, and directly in the the problem of insufficient distributors, but also to solve the payment risk. Distribution system developed as result of this marketing model, made in the early costs of the Sino-Russian trade is relatively high, but in the long run, gave the Chinese distribution companies providing a potentially huge opportunities that China's large-scale distribution the big enterprises in the Russian market may create their own distribution system. (D) the non-regulatory government Russia in the transition process, government is the biggest mistake was a vacuum. When the government tried to re-strengthen the management, the bureaucracy, there have been serious problems, their political system produced a long-term negative impact. In the area of international trade, government administration is expressed in non-standard: First, high taxes and a large number of regulatory loopholes exist. Russian import duties are divided into four grades, namely 5%, 10%, 15% and 20%, alcohol, cars and other sensitive commodities higher tariffs; addition, impose on imported goods up to 20% VAT. Five types of cars and other goods have to impose a specific excise tax. It can be seen, the Russian tax on imported goods is very high. However, the prevalence of official corruption, collusion, there has been a number of government officials with ties to the so-called Clearance of the company's popular, on the one hand Russia a huge loss of revenue, on the other hand, are caused by the unequal competition between importers and seriously disrupted the market order. Importers in the Russian market in order to gain a competitive edge, have to go through customs clearance companies Clearance of most of these companies has a strong background of senior officials through the company's gray customs clearance customs clearance may also exist for some period of time, therefore, China's exports to Russia policy must take full account of this situation. Second, policy instability. Trade between China and Russia as the main method used to barter, and later, Russia adopted a policy of limited barter trade, barter trade policies continue to adjust, causing many Chinese enterprises suffer as a result. In addition, tariffs, non-tariff barriers to trade, trade, visas, trade exchange, settlement and other aspects, the Russian policy are unstable, so that Russia's policy of export enterprises are facing a high risk. Third, greed, corruption of law enforcement officers, violated rights and interests of business events occur. China, Russia exports a lot of ways to enter the Russian market tax package, the Russian tax , police and other law enforcement officers specifically for the Chinese confiscation of goods and people, fines, etc., many in China's exports to Russia enterprises are subject to different degrees of loss. Transit of personnel, stay in Russia, the Russian law enforcement officers are often subject to blackmail. In addition, because Russia's trade settlement system is not perfect, many SMEs in exports to Russia to take cash transactions, carry cash back, etc., the Russian underworld and the police collusion, there were a number specifically for the Chinese business people in Russia's vicious cases, not only economic losses, and casualties. In short, Russia is in economic transition period, the market has not standardized, stable, high-risk, high-return characteristics, the same time, its market capacity, behind the circulation system, but also for China to expand exports to Russia, and Russia to establish an effective market networks provide opportunities. Therefore, it is necessary the actual situation of the Russian market, to develop practical strategies and policy measures. Second, a clear understanding of Chinese goods in the Russian market, competitive advantages and disadvantages During the past 10 years, China's exports to Russia went through a According to customs statistics, exports to Russia in 2001 I was 27.1 billion U.S. dollars, although the rapid growth for two consecutive years, but only in 2001 compared to 1992 exports increased by 3.7 billion, essentially flat with 1993. Even with border tourism Daobao not export statistics, the charter-report export tax package, the actual total exports to Russia about 40 billion U.S. dollars, accounting for all of Russia's imports in 2001 the proportion of less than 8%. Types of goods China exports to Russia are consumer goods, including clothing, footwear, most important, the proportion of total exports to Russia about Liucheng so. In addition, food, native products and small appliances also occupy a certain position. And I have other Western developed markets than export structure, China's highly competitive consumer electronics, IT products export in Russia in the proportion of severely low, the export potential. Chinese goods in the Russian market with a clear competitive advantage, mainly in: First, high cost performance. Overall, in the Russian market, Chinese goods can be said that most low commodity prices,ghd italia, the majority of low-income residents rely heavily on Chinese goods. Although the quality of the goods China exports to Russia are not very good, but because of low prices, the cost performance is still the most competitive. Second, China has to meet consumer demand in different sectors of Russia's potential. After 20 years of reform and opening up, China's manufacturing industry has been particularly rapid development of light industry, initially showing the prospect of a world-class manufacturing base. As an emerging major exporter of manufactured goods, China both to export world-class quality brands of consumer goods, such as brand-name sports shoes, household appliances, but also has the Russian low-income families for the tremendous ability to supply low-cost consumer goods. At present, goods in the Russian market, mainly occupied the low-cost consumer market. In the future, the focus is the development of high-quality brand-name luxury goods which enter the market. Third, China and Russia has a long border, adjacent to the market with a geographical advantage, the export of goods to a variety of ways to enter the Russian market. Chinese goods enter the Russian market, from the transportation perspective, with a variety of selective, either by land road, rail transport, but also by sea and air. From the trade perspective, either through general trade, but also can take advantage of border trade (border trade, tourism, trade, etc.) way. Fourth, has already produced a number of familiar with the marketing team of the Russian market. Exports to Russia in early herd, disorder, serious damage to the reputation of Chinese goods, but left one of the most precious heritage, is to cultivate a group familiar with the Russian market of the marketing team. It is estimated that only in the Moscow region to about 10 million Chinese business people, all in Russian about hundreds of thousands of business people. These business people need to understand the Russian market, legal, policy, operational and other aspects are unique, some are Russia established an extensive network of business and interpersonal relationships, which are further explore the Russian market the future for a vital Human Resources [/u]. See our products in a competitive advantage in the Russian market at the same time, our product must have a clear understanding of competitive disadvantage in order to avoid weaknesses. Of goods in a competitive disadvantage on the Russian market mainly in the following areas: first, reputation is low. Exports to Russia herd in the early stage, many of them self-employed there is a strong short-term sense, leading to a large number of fake and shoddy goods into the Russian market, which greatly damaged the reputation of Chinese goods. Some good shopping was to flaunt the Although in recent years as the market competition, China's exports to Russia have been much improved product quality, but low on my reputation to expand exports to Russia have long-term negative effects after long-term efforts need to be able to eliminate, so I further restricting expand the market to open up Russia's most prominent problem. Second, the Russian export business is not standardized. Compared with the Western trade, the main exports to Russia diverse, many individual operators, unscrupulous operators mixed in the same time, there are many Russians who travel Daobao a large number of goods shipped directly from China to the Russian market, China's relevant the lack of an effective sector management, statistical approach to transport Russian products to enable a number of counterfeit products into the Russian market is still, the value of trade with Russia under-reporting, statistics severe inaccurate. Third, the product quality varies greatly, still the middle and low commodity-based. Russia has emerged with a certain amount of high-end consumer groups, and the huge middle-class consumers, in the high-end goods have greater demand in Russia, but because of the long-term low-grade low-priced Chinese goods to form the image of Chinese exports to Russia of goods only products still mainly middle and low, although there are already some companies in their efforts to develop high-end consumer goods market, but often do not have the brand of Chinese goods, some of the first sent to other countries, other countries, the brand posted. China's consumption of the middle class for senior leather, shoes, clothing, textiles, household appliances, has not flooded the Russian market. Fourth, Russia's export enterprises are small, the strength is not strong. As the Russian export market is not standardized, high-risk, most powerful enterprises in China do not want to get involved in exports to Russia, some large companies first test the market after the Russian withdrawal. As a result, exports to Russia in general small-scale enterprises, the strength is not strong, their way of opening up markets relatively junior, difficult to improve the quality of goods, export scale is difficult to rapidly expand significantly lower ability to resist risks.