International Commodity Fair trade fair was successfully held in Moscow

From November 10 to 12, the International Commodity Fair 2021 trade fair was held at Expocentre, once again serving as an important platform for the development of import-export cooperation between China and Russia.

Prospects for Russian-Chinese Trade Cooperation in the New Environment

«China has remained Russia’s largest trading partner for 11 consecutive years, while Russia is China’s 10th largest trading partner,» emphasized Li Jingyuan, Minister-Counsellor at the Chinese Embassy in Russia, expressing hope that the recent event would provide an additional impetus and support for the promotion of Chinese brands in Russia.

According to Russian representatives, both the trade turnover statistics for the past period and the dynamics of bilateral trade transactions allow for an optimistic forecast of reaching a new record high by the end of this year.

Trade Fair Exhibit

This year, 150 participants showcased their best solutions, with more than 100 of them being companies from China, in particular from the major manufacturing provinces of Shandong and Zhejiang. The rest were Russian companies focused on export from various regions of the country. The main sections of the trade fair included home and garden products, children’s goods and toys, gifts and souvenirs, home appliances, food, and beverages.

Traditionally, service companies also took part in the exhibition, offering consultations at their stands on issues such as logistics, customs clearance, export cost compensation, and other foreign trade nuances. The total area of the trade fair was 4,000 square meters, and the number of visitors exceeded 5,000.

National Exhibition of Goods from China

In 2021, as part of the International Commodity Fair project, the 5th China Commodity Fair—an exhibition of quality consumer goods from China—was held. Despite restrictive measures and the associated challenges of organizing foreign participation, the largest players in the Chinese consumer goods market were able to showcase their solutions at the trade fair.

Among this year’s key exhibitors were Soton Daily Necessities—one of the world’s largest producers of drinking straws and disposable tableware; Zhejiang Newcomer Bags—a suitcase manufacturer exporting to more than 30 countries and regions; and Yiwu Yanrui Arts & Crafts—a toy manufacturer who partners with well-known brands including Barbie and Disney.

Brand Zone: Innovative Technologies from China

In addition to the largest factories focused on OEM and ODM production, more than 70 technology brands from China participated in the trade fair, including Honor, Haier, Hisense, Midea, Galanz, ZTE, Jimmy, and others. In the specially organized Brand Zone, visitors could not only discover new products in electronics and home appliances, but also negotiate mutually beneficial cooperation terms with company representatives in B2B meetings.

This section of the trade fair attracted particular interest, as demand for home appliances and electronics from China among Russian consumers continues to grow every year.

Official Events

The first day of the trade fair, November 10, began with the opening ceremony of the Brand Zone, which was held in hybrid format for the first time. In a festive atmosphere, guests were welcomed by Li Jingyuan, Commercial Counselor of the Embassy of the PRC in Russia; Chen Huamin, Deputy Director of the Department of Foreign Trade Development of the Ministry of Commerce; Zhang Yujing, Chairman of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products; Alexander Kapkov, Director of the Department of External Relations and Work with Business Councils of the Chamber of Commerce and Industry of the Russian Federation; and Lü Wei, Deputy Director of the Department of Commerce of Shandong Province.

Conference: «Consumer Goods Market Trends»

This trend was also noted by Stanislav Pugachev, Head of the Galanz Russia representative office (Guangdong Galanz Enterprise Group Co., Ltd): “People buy new household appliances not only out of necessity, but also when they want to have enhanced versions on hand. Energy-saving systems in home appliances are trending today, and we are following consumer demands.”

In Russia, demand for large and small household appliances as a whole increased by 18% and 20%, respectively, compared to last year, while demand for computer equipment rose by 7%. This was reported by Natalia Morzhova, a representative of GFK.

Sergey Lebedev, Vice President of AliExpress Russia for Government Relations, noted the stability of e-commerce trends compared to 2020: «Last year, there were expectations that as soon as the strict restrictions on shopping centers were lifted, consumer activity would return offline. There was a slight decline in online orders for about a month, but then they returned to previous volumes and continue to grow at double-digit rates in Russia. We forecast that average annual growth rates for online sales will be 30–35% through 2025.»

Forum “Practice of Trade Cooperation”

For the fifth time, the two-day Forum «Practice of Trade Cooperation» was held as part of the project, dedicated to the issues of foreign economic activity and doing business with international partners.

The sessions "Exporting to China in a Pandemic" and «Export and Import. Logistics. Certification,» held on the first day, covered all aspects of trade cooperation and doing business with China. Practical experts shared their experience, market entry algorithms, and the nuances of cooperation with Chinese partners under challenging pandemic restrictions.

On the second day, a panel discussion titled “Marketplaces: A New Stage for Russian Business” brought together e-commerce experts and seller representatives. Speakers from UPMARKET, AliExpress Russia, the Association of Trade and Technology Companies in Retail, and entrepreneurs from RIVACASE and MioBrush discussed the nuances of entering marketplaces, the future of online commerce, niche discovery and success stories, and also answered questions from the audience.

According to session moderator Susanna Uraeva, sales through marketplaces increased by 58% over the previous year, and this trend continues to accelerate in 2021. Today, almost 90% of sellers on universal e-commerce platforms are small and medium-sized businesses, which are discovering broad opportunities for successful trading on marketplaces. All participants in the discussion agreed that, over the past two years, consumers have developed a habit of making both traditional and spontaneous purchases online, while marketplaces themselves are gradually becoming a new essential distribution channel for all areas of business, including B2B promotion.

Alyona Shvetsova, a strategist in marketing, spoke about opportunities in modern retail in China and food product exports. In addition, experts addressed topics such as insuring commercial risks when working with China, creating a trademark in China, and the nuances of brand adaptation.

Next, together with Anna Fomicheva, Vice President of RASPP, attendees discussed the latest trends in foreign economic activity and changes in customs control. The business program concluded with a discussion on transport cooperation between China and Russia in the post-COVID era.

More than 30 expert speakers participated in the Forum this year, among them Anna Fomicheva (RASPP), Alyona Shvetsova (SKYLEX GROUP), Susanna Uraeva (UPMARKET), Viktor Kukharsky (MGUTD), Irina Epifanova (Business Panda), Alexey Sapetko (Department of International Cooperation, Ministry of Transport), and other specialists.