Russian lighting market policy, capital flow, logistics secret

Uncertainty has always been the most important factor for enterprises to enter new markets. Such as regulations, capital flow and logistics and so on, for a foreign enterprise is absolutely necessary to understand the information.

According to the Russian lighting market, in addition to the language (because the Russians are not fluent in English), LEDinside will enter into this huge market, a list of elements of enterprise are most worried about, and further analysis of its effect:

Policy:

The Russian government for the "green industry" mining height support, several key plans, including the "Strategy 2020", the Ministry of economic development in 2014 issued a "229 document" and "Document No. 155", clearly pointed out that all LED products in the "national or municipal construction" must be accounted for by a certain proportion. Coupled with the Russian government in 2014 to ban incandescent light, will accelerate the replacement rate of LED products. As for the regulations in part, Russia lighting products mainly follow the international standard IEC standard and national standard GOST R, mainly to international norms derived from the Ordinance as a principle of law, there is no special requirements for products. In part of the policies and regulations, the Russian market does not have the so-called uncertainty, but there is more help from the government's support.

Logistics:

The transport channel part, besides the general orthodox logistics directly enter the Russian market, the Russian local has many "consultants", to assist foreign companies or products in Russia local distribution, but is actually another type of logistics industry. These consultants typically had the order, assist the Russian local ditch companies to find solutions, as consultants to find solutions in foreign countries, for local procurement and transportation products directly to russia. So it can be regarded as another form of dealer.

LEDinside after the local visit also found that many of the market, the consultant company has a Chinese background, the Russian local office is only the head of the company, but also a special situation in the Russian market.

Summary, products to enter Russia and won't have too high threshold, is to find the order counterparts. As for the import tariff, since the accession to the WTO in 2012, the import tariff has decreased year by year, after September 2015, LED components will enter the "zero tariff" era, the tariff will fall between 12% ~.

Capital flow:

Part of the flow of funds into the market, there is no regulation, mainly in the local establishment of the company will be in accordance with the different forms of the company, there are differences in the minimum amount of capital.

As part of the capital appearance, the Russian government did not set the terms of foreign exchange control, that is, as long as the local profits in Russia, the manufacturers, the funds to be remitted to the country, is not subject to the amount of control. Although the Russian market seems to be closed, but in terms of funds in the terms of departure, in fact, compared to other Asian countries are relatively free.

Based on the above information, Russia in the face of foreign companies are actually quite friendly, in the overall policy, regulations, cash flow and logistics are too limited, thus providing more flexibility for foreign companies and construction company set up the business model, so the set point is, how to make the enterprise value, to find local partners, to establish long-term cooperation the relationship between, can make sales promotion.

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