Bosideng expects 12 years of market maturity in Russia's market transition
Large clothing companies such as Bosideng have even spent a lot of money to build brands in China, but they have always been silent in the Russian market. Zheng Zhiwei, head of the Bosideng Russia branch, tells the story.
The temptation of the Far East · Case tracking
Into the Russian clothing market, China's manufacturing can be seen everywhere, but there are few Chinese brands in the Russian clothing market. Large clothing companies such as Bosideng have even spent a lot of money to build brands in China, but they have always been silent in the Russian market. Zheng Zhiwei, head of the Bosideng Russia branch, tells the story.
The "Grey Off" pain
Zheng Zhiwei visited the Russian market in the 1990s. He told the “China Business News†reporter that the Russian market had just opened up and the competition was far behind the domestic market. Chinese clothing was very popular. However, due to the influx of Chinese products, the market is full of mixed forces, and inferior products can be seen everywhere. "In 1995 and 1996, only self-employed people could do business and corporate behavior was impossible."
Until 2000, when Premier Zhu Rongji visited Russia, well-known Chinese companies organized an exhibition in Russia and Bosideng participated. Zheng Zhiwei told reporters that around 2000, Bosideng set up a permanent point in the Moscow Friendship Mall, and the branch office officially opened in Russia.
At the time, Zheng Zhiwei believed that Bossten could establish a brand in Moscow with a maximum of three to five years, but it turned out that he was wrong - the time was not ripe. Before and after 2005, Zheng Zhiwei personally witnessed a Hong Kong company advertising according to the conventions of market operations, and placed a lot of money on brand promotion. However, the final result turned out to be nothing but to leave behind nothing. In October 2007, Bosideng went public in Hong Kong and was listed on the market. Bosideng had planned to invest 50 million US dollars in the Russian market as a brand, but after calm considerations, it still gave up.
The reason for this is that the Russian government has not resolutely cracked down on the "grey juncture" and has always closed its eyes. Enterprises do not dare to compete with the high costs of normal customs clearance and those cheap products that have gone "gray."
Quietly waiting for the Russian market to mature, Bosideng is 12 years. So far, Bosideng has sold more than 10 million down jackets each year in the country. However, it only makes wholesale sales in the Russian market, and it also has more than 100,000 items each year, which is insignificant compared to the total amount.
Looking forward to Russian market transformation
In December last year, the World Trade Organization formally approved Russia's application for membership, and the Russian State Duma officially approved this application in July this year. Zheng Zhiwei said: "Russia's accession to the World Trade Organization means that he will eventually begin to follow international rules. The opportunity to establish a Bosideng brand in Russia is again beckoning to us."
However, this opportunity may not come soon. Because a Russian business person familiar with Russian policy stated that according to the Russian official's statement, the WTO has given Russia a maximum of 7 years of buffer period. It may take several years for Russia to fully fulfill its commitment.
However, the change is happening. “The reason why the Russian market has opportunities is because there are no big brands here. It was not in 2001 and it is very rare now.†explains one local person. This leaves a huge room for imagination for any brands that want to come here.
Many people have gone through formal formalities in the selection of goods entering Russia. Some visionary Chinese businessmen who set up stalls in the original big market have begun to arrange exhibition halls and set up branch offices in Russia, although these people now occupy The proportion is still very small.
The Central Enterprise Chengtong Group has also noticed this, and it invested 420 million U.S. dollars to build a park in the suburbs of Moscow, hoping to call in Chinese companies interested in doing formal business in the Russian market. Since this land is exclusively owned by Chengtong Group, it will establish a guarantee between the settled company and the Russian government. “With this platform, the security of Chinese companies doing business in Russia will be more secure. Moreover, the actions of the Chengtong Group also indicate that the Chinese government will strongly support companies in setting up their own brands in Russia.†Zheng Zhiwei’s voice is filled with excitement. After all, As a pioneer in branded apparel companies, Bosideng has waited 12 years in Russia and the opportunity is getting closer and closer.
Into the Russian clothing market, China's manufacturing can be seen everywhere, but there are few Chinese brands in the Russian clothing market. Large clothing companies such as Bosideng have even spent a lot of money to build brands in China, but they have always been silent in the Russian market. Zheng Zhiwei, head of the Bosideng Russia branch, tells the story.
The "Grey Off" pain
Zheng Zhiwei visited the Russian market in the 1990s. He told the “China Business News†reporter that the Russian market had just opened up and the competition was far behind the domestic market. Chinese clothing was very popular. However, due to the influx of Chinese products, the market is full of mixed forces, and inferior products can be seen everywhere. "In 1995 and 1996, only self-employed people could do business and corporate behavior was impossible."
Until 2000, when Premier Zhu Rongji visited Russia, well-known Chinese companies organized an exhibition in Russia and Bosideng participated. Zheng Zhiwei told reporters that around 2000, Bosideng set up a permanent point in the Moscow Friendship Mall, and the branch office officially opened in Russia.
At the time, Zheng Zhiwei believed that Bossten could establish a brand in Moscow with a maximum of three to five years, but it turned out that he was wrong - the time was not ripe. Before and after 2005, Zheng Zhiwei personally witnessed a Hong Kong company advertising according to the conventions of market operations, and placed a lot of money on brand promotion. However, the final result turned out to be nothing but to leave behind nothing. In October 2007, Bosideng went public in Hong Kong and was listed on the market. Bosideng had planned to invest 50 million US dollars in the Russian market as a brand, but after calm considerations, it still gave up.
The reason for this is that the Russian government has not resolutely cracked down on the "grey juncture" and has always closed its eyes. Enterprises do not dare to compete with the high costs of normal customs clearance and those cheap products that have gone "gray."
Quietly waiting for the Russian market to mature, Bosideng is 12 years. So far, Bosideng has sold more than 10 million down jackets each year in the country. However, it only makes wholesale sales in the Russian market, and it also has more than 100,000 items each year, which is insignificant compared to the total amount.
Looking forward to Russian market transformation
In December last year, the World Trade Organization formally approved Russia's application for membership, and the Russian State Duma officially approved this application in July this year. Zheng Zhiwei said: "Russia's accession to the World Trade Organization means that he will eventually begin to follow international rules. The opportunity to establish a Bosideng brand in Russia is again beckoning to us."
However, this opportunity may not come soon. Because a Russian business person familiar with Russian policy stated that according to the Russian official's statement, the WTO has given Russia a maximum of 7 years of buffer period. It may take several years for Russia to fully fulfill its commitment.
However, the change is happening. “The reason why the Russian market has opportunities is because there are no big brands here. It was not in 2001 and it is very rare now.†explains one local person. This leaves a huge room for imagination for any brands that want to come here.
Many people have gone through formal formalities in the selection of goods entering Russia. Some visionary Chinese businessmen who set up stalls in the original big market have begun to arrange exhibition halls and set up branch offices in Russia, although these people now occupy The proportion is still very small.
The Central Enterprise Chengtong Group has also noticed this, and it invested 420 million U.S. dollars to build a park in the suburbs of Moscow, hoping to call in Chinese companies interested in doing formal business in the Russian market. Since this land is exclusively owned by Chengtong Group, it will establish a guarantee between the settled company and the Russian government. “With this platform, the security of Chinese companies doing business in Russia will be more secure. Moreover, the actions of the Chengtong Group also indicate that the Chinese government will strongly support companies in setting up their own brands in Russia.†Zheng Zhiwei’s voice is filled with excitement. After all, As a pioneer in branded apparel companies, Bosideng has waited 12 years in Russia and the opportunity is getting closer and closer.
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