This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

Peter Fradkov: rockets - they know, but shampoos - no

The Russian export center proposed a radical solution for increasing exports to China of domestic goods

Peter Fradkov: rockets - they know, but shampoos - no
The Russian export center offered a radical solution to increase exports of domestic goods to China. For this, according to the REC, it is necessary to build a network of logistics centers throughout Russia (in the first stage - in its European part), seriously invest in the promotion of Russian brands in China, as well as enhance the use of the transport corridor between the Russian Federation and China. On the intricacies of the project in the fields of the second Eastern Economic Forum IA Told the general director of the REC Petr Fradkov.

- Pyotr Mikhailovich, what is the main essence of the REC project?

- Supply of Russian consumer goods, primarily food, for export to China. But not only. We are talking, for example, and about children's goods - and not only baby food, but also clothing, hygiene products, etc. In China, there is a great demand for this. However, for a significant increase in shipments, it is necessary to form container trains somewhere on the territory of the Russian Federation. They need to be collected, because it is pointless to deliver anything to small parties in small batches. And secondly, it is necessary that these trains pass the border very quickly. Deliveries by sea are long. Now we are working in different directions, including with Russian Railways, and with our Chinese colleagues, to create a favorable tariff - because such supplies must be cheap.

- Where will these logistics centers be created?
- You are right, it is very important where such goods will be collected. Most likely, at the first stage we are talking about the Central Federal District or the Volga region. Because, basically, these macro-regions produce the bulk of such goods. We are talking about the Kaluga region, Voronezh, Tatarstan, etc. In any case, I think that we will start from three or four points, and then we will move on.

- To Siberia and the Far East?
- Of course, but this will be the next stage. Now we proceed from the one where the production of those goods for which there is demand in China is concentrated. Whatever one may say, most types of commodity nomenclature, first of all, are produced in the central part of Russia.

- Are you really sure that in China there is a serious demand for Russian goods? There, after all, their own production is ...
- There is a demand for sure. The fact is that in China now two global things are happening. First, the living standards of the population there increase, which inevitably leads to an increase in effective demand. Secondly, as a result, there is an increase in consumer demand, primarily to the quality of products. The Chinese are beginning to pay more attention to the environmental parameters of the products, whether GMO components were used in their production. In China, not all products meet this criterion, and in Russia they do, because we have banned GMOs. So there is demand. But there is a problem with the promotion of our brands in China. Speaking quite simply - our brands do not know there at all. And when we show and advertise our brands, the Chinese are very surprised at how high-quality and competitive products we have. For example, confectionery products - Russia has a rich history of chocolate production. Hygiene products for children - conditionally, shampoos for children, and environmentally friendly. Due to the abolition of the ban on the second child in China, the demand for children's products is also growing there. But it is necessary to form it, including using the resource of electronic platforms.

- Hence the theme with Alibaba?
- Quite right. But not only this site, but others as well. In China, more and more goods are purchased online. And our goal is to increase brand awareness through such platforms. However, we plan to work on brand awareness in general, through promotional events, gastronomic weeks, etc. The second direction is the creation of sales channels through electronic platforms. It is important for the Chinese mentality that a person, turning to Alibaba, gets on a Russian page, where everything would be written down and understandable. And third, I repeat - we need to ensure the logistics component: a favorable tariff, transit time, simplified customs procedure, concentration and collection of shipments.

- If you talk about logistics, do you have an understanding what tariff should be? And how many days should be spent on passing containers?
"No more than eight days." And this is quite real, although now at least twice as long. About the tariff in money I will not say, but it clearly must be competitive with respect to sea transportation. After all, the sea is in any case long. And although now tariffs for such transport are lower than railroads, they take more time. In general, the logic should be this - both quickly and cheaply. In another way, it will not work. Now there is an understanding that it is necessary to introduce a special tariff. For RZD, this is also beneficial, because they will ensure the reverse loading of containers.

- If we talk about the brand, what will it be like? Made in Russia?
- And this is not important at all. It's not about the icon and not the phrase. First of all, the Chinese should have a persistent feeling that high-quality products are made in Russia. And at the exit we can promote the list of brands, conditionally - from “Alenka” to “Eared Nanny”. For individual events, for example, branded pavilion, you can use a single brand. But in general, I think this is a simplified approach. We believe that we need to bring at least a dozen brands to the Chinese market in order for them to work there as well as Coca Cola works all over the world. And the most important thing is that, apart from perception, everything Russian high-quality and tasty should be and just get it all. Ordered - and received in a week. So everything should be ideally.

- And who will provide this ideal?
- We will select partners who will become operators of container transportation. Because the supply is not the business of the REC. Our task is not to interfere with business in this case. Although, of course, we will ensure that the operator provides a competitive service if we work with him and accredit him.

- And such operator can become Chinese Sinotrans?
- Why not? But I think there will be an operator on both the Chinese and the Russian side. The main thing is that we understand that this scheme works and we control it, if necessary, help with administrative resources, finance, negotiation services, etc. And we provide general branding. But aimed at shaping the perception that Russia produces good products and consumer goods. And now in the world they know what we can do rockets. And what else shampoos produce excellent - do not know.
October 17: current information on coronavirus in the Far East
Digest of regional events and latest statistics