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Own business with China – a brief report.

Own business with China – a brief report.

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Greetings, friends. I wanted to share my progress and results over the past six months. I’m currently in Anshan (at a resort, relaxing, and taking excursions). Tomorrow morning, I’m flying to Guangzhou for a meeting with partners and returning to Vladivostok via Hong Kong on a direct flight.

A Brief Report on Building Your Own Business with China

What’s been accomplished? I opened a representative office with partners in Yiwu, China’s largest market city. It’s a very promising location, even from a Chinese perspective. There are numerous representative offices of companies from all over China. The number of foreigners is also surprising – Arab hotels, restaurants, cafes (where alcohol is prohibited), and offices are all around. In short, it’s a truly international crowd! The city has a “dry port,” so cargo clears customs, and then the loaded containers are transported to Ningbo (200 km) or Shanghai (300 km), depending on which route is most convenient. The lines of container trucks waiting for clearance are truly long!

Incidentally, there are also quite a few of our compatriots. Signs in Russian are everywhere, offering a full range of services for delivery and customs clearance of goods from Yiwu to Russia and Ukraine. In short, there are a lot of people, but there’s enough work for everyone: some search for Chinese goods, others process them, still others transport them, and some “monsters” offer a comprehensive service, including customs clearance and delivery within Russia. They also offer trade finance, which was a pleasant surprise. Prices, of course, differ significantly from our company’s rates. While we fight for every 10-20 USD on shipping, here the difference is not a few hundred dollars per container. This is the first time I’ve heard from the Chinese that we offer a cheap comprehensive rate for shipping containers from Shanghai and Ningbo to Vladivostok and then by rail to Moscow, and they can’t believe it!

Marketing and Promotion Approaches in the Chinese Market

Financial results for the first six months show a turnover of 80 million rubles, or an average of 13 million rubles per month. I consider this figure quite good, considering the continuous Russian and Chinese holidays since the beginning of 2013. Factories are only now beginning to operate at full capacity (after the Chinese New Year, about 30% of workers did not return to their factories). According to Chinese partners, the main flow of cargo from China to Russia will begin in June. Incidentally, virtually all Chinese government organizations are focused on increasing cargo flow from Russia, based on the meeting of the top leaders of our countries and the objectives set for the governments.
The types of goods we transport from China to Russia and clear through customs remain extremely diverse. Household goods, construction materials, haberdashery, fabrics, fishing and recreational goods, and more—in short, there’s something for every taste, size, and color.
We plan to open an office in Guangzhou by the end of the year, and we’re already receiving offers from Chinese partners to start a joint venture to deliver and handle customs clearance of goods from China to Russia. Why not collaborate? The shipping market from China to Russia is growing—we need to unite and expand.

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