Made in Russia – Guarantee of Quality for Chinese consumers: REC Experience

The Federation Council of the Federal Assembly of the Russian Federation held a roundtable discussion on the strategy for supporting Russian exporters in the Chinese market. The roundtable was organized by the parliament's Committee on Economic Policy. Alexander Molodtsov, Vice President of Russian Export Center (REC, VEB Group), presented the key areas of the Group's systematic work to promote domestic products under the Made in Russia brand and implement financial instruments for cross-border payments. According to Alexander Molodtsov, the Chinese market is experiencing rapid growth and “the volume of supported export to China has increased in the current period, over the first nine months of this year, thanks to the REC Group's tools. This indicates that the support system is working, and the number of companies entering this market is expanding.” To ensure uniform rules for interaction with exporters across the country, Russian Export Center (REC) continues to implement the Regional Export Standard. According to Molodtsov: “The most important goal is to ensure that exporters have no difference in terms of interaction rules and support regulations, regardless of where they operate". Russian Export Center actively develops comprehensive infrastructure in China with a focus on industrial products with high added value, although it acknowledges that the agricultural sector still dominates. "Russian products are so in demand in China that even major American media like CNN and Bloomberg are writing about our popularity. But we've run into a problem of counterfeiting. Made in Russia mark appears, even though there's nothing Russian about them," Alexander Molodtsov. Under these conditions, the Made in Russia brand is becoming the only reliable guarantee of origin for Chinese consumers: "The Chinese side actively supports us. The idea is that products sold under the Made in Russia brand, with the appropriate certificate, are considered genuine Russian products." In addition to offline sales, Russian Export Center (REC) is actively developing online channels, which is critical for small and medium-sized businesses. For companies that find it difficult to independently enter Chinese marketplaces, REC provides support through National Stores on 11 Chinese marketplaces, encompassing 36 online stores. Currently, over 800 Russian companies are represented on these platforms. "At the same time, we see that, despite logistical challenges, regions outside the Far East are dominating. We use every platform we can to inform companies, especially in the Far East, about the excellent opportunity to sell on Chinese marketplaces," Alexander Molodtsov. Made in Russia certification is free and gives companies access to the full range of REC services, including direct negotiations with buyers, participation in festivals and fairs, and marketing tools. Among the most successful formats, Russian Export Center cites festival-fairs. This format allows SMEs to achieve immediate sales results and, equally important, to get consumer feedback. Top sellers at such fairs are often folk arts and crafts, as well as products from creative industries, including unique Russian software for drone training. This format not only allows for sales but also for testing the market before launching large-scale export operations. To ensure reliable and affordable settlements with Chinese partners, Russian Export Center has developed a new agent-based model for cross-border payments, enabling secure payments outside the traditional banking sector. Large clients are attracted by the secure infrastructure, while SMEs value the absence of minimum transaction value restrictions.