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Food Matryoshka

Businessman Igor Chaika launches e-commerce platform in China



Food Matryoshka
Recently, Russian exports to China have new opportunities - the DAKAITAOWA.COM electronic trading platform has opened, designed to supply Russian food products to China. Among the investors are Russian names: Igor Chaika, Anna Barysheva, Artem Semenov, Oleg Dmitrienko. Translated from Chinese DAKAITAOWA means "open nesting doll". The electronic platform does not open nesting dolls, but it provides a full cycle of work within the framework of cross-border trade - this is marketing research of the market, and the search for partners in Russia and China. The operator provides export-import clearance and certification of Russian food, is ready to help with logistics. Thanks to the platform, Russian food producers can enter the Chinese market without creating their own infrastructure and with minimal costs for export and promotion.

The Chinese food market today is one of the most promising in the world. In terms of value, its annual growth is 15-20%, and the volume in 2015 amounted to more than $ 80 billion. This market is very tempting for foreign producers, while the share of all imported food products in China for 2015 was about 6%, and the share export products from Russia - only 0,2%. The main supplier countries are the United States, Thailand, Brazil, the European Union and others.

It is obvious that Russian commodity producers, taking into account the current exchange rate, are in a better position in terms of price competition: most commodity groups are capable of having high margins. Convenient geography and logistics. The quality of our manufacturers - manufacturers of packaged food products - often significantly exceeds their Chinese counterparts. This is due to both historical standardization (GOST), and modern certification (including international ISO), and strict quality control, and modern high-tech industries. Moreover, new habits and preferences appear on the part of Chinese consumers, including interest in products and goods from Russia. The launch of an electronic trading platform specializing specifically in Russian goods is an obvious attempt to monetize market conditions.

Site Dakaitowa.com works in Chinese, his logo is decorated with a traditional Russian nesting doll. Among the design elements - and the Spassky Tower of the Moscow Kremlin, and the Cathedral of St. Basil the Blessed. On the main image block there is probably a key Russian food brand - sandwiches with black caviar on the background of a stack of vodka. If you look through it - an appetizing picture opens: three fleshy mushrooms look out over the mossy moss. Even to those who do not know the Chinese characters, almost everything is understandable here: they are the products and brands that are quite familiar to our diet: Richal-Su mineral water, Shokoladnitsa and Medovik cakes, macaroni and cereals under the National brand (including Russian Kuban rice) dried berries and mushrooms, fruit purees "Grandma's basket". The range is still clearly modest, but, according to site operators, will expand. 

One of the advantages of the site, the operators themselves, call consumer protection against counterfeiting. According to Anna Barysheva, CEO of the company that owns the First Russian Cross-Boarder Trading (Shanghai) Limited platform, “we deliberately opened our own platform, and did not use the existing ones in China to import food from Russia into the country ... We took into account a large number of counterfeits on Chinese market - buying from our platform, counterparties in China can be 100 percent sure that this is a real high-quality Russian product. All goods on DAKAITAOWA.COM belong to our import-export trading company in Shanghai and we are responsible for its quality, we strictly adhere to storage conditions and delivery times. "

As Ms. Barysheva clarifies, “there are no restrictions on the geography of the distribution of goods in China for us. This is the meaning and benefits of modern online trading. There are statistics on the regions, of which the largest number of orders came in the first days of DAKAITAOWA.COM's work - these are Shanghai, Beijing, Jiangsu, Zhejiang, Henan, XUAR (Xinjiang Uygur Autonomous Region) and Shandong. But these are not limitations, but statistics. We are ready to deliver Russian products anywhere in the country. "

According to the marketing analysis of the Chinese market carried out by the project operator, the following food categories are the most attractive for import to China: confectionery, chocolate and snacks (the Chinese confectionery market is growing by 10% annually), baby food (20 million babies are born annually in China) ), natural organic products that are becoming more and more popular in the trend of a healthy lifestyle and healthy eating - bottled water, honey, jams, cereals, nuts, edible oils, etc., as well as perishable products: meat products and delicacies, fish and seafood, milk products. In the early days of the DAKAITAOWA.COM platform, there was also a high demand for picking products: berries and nuts.

"Nevertheless, on our platform there is a special section" other goods from Russia ", where in the future we will be able to present non-food products," - said Anna Barysheva.

She also noted that DAKAITAOWA.COM was created for all Russian manufacturers of high-quality packaged food without being tied to any region. “We provide Chinese consumers with access to any desired food products from Russia, regardless of geography of origin. But it should be noted that, just like in the Russian domestic market, the region of production can speak of the quality of a particular product. For example, since the Far East is famous throughout the world for caviar, fish and seafood, the indication of one or another of its subjects as the territory of production of this product immediately makes it of high quality in the eyes of the consumer, "added Anna Barysheva.

At present, the platform is already integrated with China's electronic customs ports, as well as with warehousing and transport logistics programs. In the near future, it will be integrated with payment systems and third-party electronic retail outlets in China, including such popular ones as JD, TMALL (included in the Alibaba Group) and Suning. Also in the nearest plans of the platform development until the end of 2016 year is the launch of the mobile application DAKAITAOWA.COM and the opening of a branch in Hangzhou. At the same time, the company will continue to expand the range of suppliers in Russia and buyers in China.

Experts interviewed by the EastRussia correspondent generally welcomed the initiative of the trading platform, but noted ambiguous aspects in motivating Chinese consumers of Russian products. 

According to the head of the Center for Social and Economic Research of China, Deputy Director of the RAS IFES, Andrei Ostrovsky, the work of the platform is an opportunity for a significant increase in trade between Russia and China. “Thanks to the platform, a small number of consumers of products from Russian manufacturers will increase not only by several times, but by 100 times,” the expert says. “Russian manufacturers cannot provide such an increase in consumption for themselves because it is very difficult for them to enter the Chinese market - due to their ignorance of the Chinese language, technologies and possible places of sale of their products in China.”

According to Andrei Ostrovsky, for China the products offered by the platform are interesting, first of all, by their quality. At the same time, first of all, Chinese consumers will be interested in high-quality products of the Far East. This is not surprising, since Far Eastern products are at least more environmentally friendly. At the same time, the prospects for Far Eastern producers are limited by the low level of infrastructure development throughout the Russian-Chinese border. 

At the same time, according to the assistant professor of the Department of Economic and Social Geography of Russia, Moscow State University. M.V. Lomonosov Alexander Danshin, "currently produced in the Far East, the products are not produced in such quantities to supply it to China. With very few exceptions - potatoes and any vegetables grown exclusively in the Far East. "

The expert believes that significant exports of agricultural products to China from the Far East can only be discussed in the distant future. Provided that in the territory of the Far East the scale of agriculture will significantly increase. "Which seems unlikely, since there is not enough population on its territory," says Alexander Dalshin.

"The work of the site DAKAITAOWA.COM today is clearly not focused on Far Eastern producers, - said one of the interlocutors of EastRussia. - Among the products now placed on the site, to the Far East can be attributed only to fish. The rest - brands, much more familiar to the capital consumer, rather than the Far East. " It is noteworthy that among the regions named by the operator as the most active buyers, there are neither Heilongjiang provinces nor Jilin provinces - traditional trading partners of the Russian Far East. "It seems that the site at this stage is more oriented in supplying goods of a long shelf life from producers in the European part of Russia," the expert said. "It is very interesting whether the Far Eastern suppliers will start using the platform, which already have any sales channels in the PRC."  

ER Help

The functioning of the DAKAITAOWA.COM electronic trading platform is provided by such companies as Russian Export LLC (Moscow, Russia) and First Russian Cross-Boarder Trading (Shanghai) ltd (Shanghai, China). The first plays the role of an exporter, is looking for manufacturers and their support in Russia. The second, the owner of the platform, is an importer and interacts with contractors in China. The investors of FRC International Trading ltd and the founders of Russian Export LLC are Igor Chaika (41%), Anna Barysheva (24,5%), Artem Semenov (24,5%), Oleg Dmitrienko (10%). When DAKAITAOWA.COM just opened, it offered Chinese buyers 100 items from 30 Russian manufacturers. There were about 60 orders received on the first day of work. In accordance with the development strategy, by the end of 2016 the site will already contain 500 products, and in 2019 their number may reach 4000.
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