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In Moscow - cheaper

Far Eastern producers lose the competition for the export of products to China

In Moscow - cheaper
Two weeks ago EastRussia wrote about starting work Electronic trading platform DAKAITAOWA.COM - the project of businessman Igor Chaika. Recall, in Chinese, DAKAITAOWA means "open a matryoshka." The platform offers Russian producers access to the Chinese market without creating their own infrastructure: the partners are provided with everything from marketing to logistics and transaction support. Interestingly, the partners are offered two legal options for cooperation: on the basis of a purchase and sale agreement with payment by installments and on the basis of a commission (agency) contract for the export and sale of goods to the PRC. Together with this, two trade regimes are envisaged: customary trade and cross-border trade, which allows the sale of goods to individuals without passing the certification procedure.

In the complex, this service is unique for the market today: this factor provided a fairly lively start to the project. Moreover, the Chinese demand for Russian goods today clearly exceeds the existing offer.

“Over the past almost 10 years, I have seen many Russian companies trying to enter the Chinese market. But, at the same time, I have not yet seen any of them succeed, - says Sun Tianshu, chairman of the board of directors of the "mirror" project - a Chinese e-commerce platform in Russia. “At the same time, for several years in a row, people in China have been complaining about the lack of Russian products. That is, there is a very shortage of Russian products in China today. Some of their modern consumption can be said only in the Northeast of China. "

According to the expert, Russian producers can fully rely on the prospects for consumption in China not of individual species, but of any Russian products.

"Today Russia is a strategic partner for China and trusted in China," Sun Tianshu says. - And in some products - even like. Clear evidence that today in Beijing in the diet of many Chinese people occupy a large place in Russia's products. That is, Russia in the supply of its products to China is currently absolutely fostered by the fact that it no longer needs to create its image from scratch in China. In other words, there is already a ground for the entry of Russian products into the Chinese market. It remains - to enter correctly, and then, to win its niche in the Chinese market or to occupy it by withstanding competition with other foreign products. "

The editors of EastRussia, both two weeks ago and today, have studied the range of products presented on the website of the trading platform. He is, at first, modest, no fundamentally new positions could be found. Confectionery products are presented, including the famous Shokoladnitsa and Medovik; pasta and cereals under the National brand, dried berries and mushrooms, Babushkino Lukoshko fruit puree, Rychal-Su mineral water, FitoGuru fruit drinks. It is striking that the assortment has not yet presented Russian alcoholic beverages: there are no Krasnodar wines, no aromatic liqueurs, no national Russian drink.

Another impression of the assortment is that a Far Eastern manufacturer is practically not represented here. Manufacturers of the European part of Russia are in the lead. As it turns out, the reason is the low competitiveness of Far Eastern products. According to Anna Barysheva, General Director of the DAKAITOWA trading platform in China, the determining factor in the cooperation of the platform with one manufacturer or another is not its logistic location, but the final cost of its products for the consumer. So, for example, it is more expensive to sell Far Eastern or Baikal water to China than water produced in the European part of the country.

"It goes without saying that the cost of delivery in the final cost of products put forward to the consumer has a significant share," says Anna Barysheva. - The platform management is more than interested in having its manufacturer have an advantageous logistics location. And, therefore, first of all, considers those of them who work in the Far East - especially since Far Eastern producers are already familiar to Chinese consumers living in the north of China. "

However, there is a snag. Such a seemingly obvious Far Eastern product, such as caviar and fish, also comes from the Far East, but from the Moscow region. Thus, Oleg Dmitriyenko, general director of the DAKAITAOWA.COM trading platform in Russia, drew the attention of the EastRussia correspondent to the fact that, now, Moscow-based enterprises operating on Far Eastern raw materials demonstrate greater activity. 

“A striking example of this is the North-Eastern company, with which the platform is now actively cooperating on such a product as red caviar: the caviar of this company is distributed in cans not in the Far East, but in the Moscow region. You can cite many other similar examples from the sphere of fish production and not only, ”Oleg Dmitrienko informed EastRussia correspondent.

At the presentation of the site held in Moscow, the DAKAITAOWA management emphasized the openness of the platform for Far Eastern manufacturers. “Unfortunately, to date, the products of Far Eastern manufacturers have not yet been presented on the DAKAITAOWA.COM resource. But negotiations with them are now being actively conducted by the leadership of the platform. And, for its part, it very much hopes that in the near future the range of the platform will be expanded with products from Far Eastern manufacturers, ”said Anna Barysheva.

Thus, for the assortment DAKAITAOWA will be constantly interesting to observe to understand the actual correlation of such aspects of competition as convenient logistics and low price. According to experts interviewed by EastRussia, Far Eastern producers are unlikely to be able to secure a share in the assortment of the platform in the near future. While active development of such services on the contrary can reduce the share of those Far Eastern producers, who are already now independently exporting their products to China.

ER Help

The functioning of the electronic trading platform DAKAITAOWA.COM is provided by such companies as Russian Export LLC (Moscow, Russia) and First Russian Cross-Boarder Trading (Shanghai) ltd (Shanghai, China). The first acts as an exporter, is engaged in the search for producers and their accompaniment in Russia. The second - the owner of the platform - is an importer and interacts with counterparties in China. The investors of FRC International Trading ltd and the founders of OOO Russkiy Exports are Igor Chaika (41%), Anna Barysheva (24,5%), Artem Semenov (24,5%), Oleg Dmitrienko (10%).

When DAKAITAOWA was just opening, it offered Chinese buyers 100 commodity 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 goods, and in 2019 their number may reach 4000. According to the information provided to the EastRussia correspondent by the project management, DAKAITAOWA is currently still working with 30 Russian suppliers. But by the end of 2016, their number will be increased to 50, and in 2017 - to 100 contractors. 

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