Tiraspol, 28 September. /Novosti Pridnestrovya/. The Chamber of Industry and Commerce of the PMR (CIC) has held a roundtable discussion with the participation of small, medium and large businesses from Pridnestrovie, Moldova and Italy. The main purpose of the meeting was to design the prospects for export development and entry to a new market.
The report of the head of the foreign trade department of the CIC, Vladimir Isayev, was dedicated to the functional strategies for reaching the target market, emphasising the three questions each enterprise should answer: when, how and where should their goods be supplied
In the first case, in order to successfully overcome all barriers, careful consideration should be given to whether or not your bid is first, unique and innovative. And in the case of the positive answer to at least one question, taking into account all the risks, the relevant time for the export is determined.
"It is also important to know how to enter a new market. If your resources are sufficient to enter new markets through mass seizure — ads, distribution across all channels, working with many distributors and trading networks — is the right strategy," said Isayev.
He noted there was also a consistent expansion: to supply to one country and move with time to neighbouring markets.
The question 'where?' should face any company that wants to be competitive in the market. The trade rules and regulations of other countries should also be taken into consideration.
The country's leading companies shared their successful export experience. The first was the acting head of the marketing and sales department of JSC Kvint, Oleg Ionku.
He underscored that in 2016 the company had supplied its goods to 27 countries of Europe, Asia and Africa. 85% of their goods went to the CIS countries.
But despite Kvint's long history and good reputation, its management has been constantly facing difficulties with supply.
"We are well-known in the ex-USSR states, but our awareness in other countries remains low. If you ask an ordinary citizen of Romania or Poland what is Kvint, you are likely to hear: 'I don't know.' We are working hard to enter new foreign markets," underscored Ionku.
According to him, the most important factors that encourage the active search for new markets are the relatively low capacity of the domestic market, the underutilisation of the plant's capacity, shortage of foreign currency receipts, part of which is allocated to the purchase of raw materials and components.
"When we are entering new markets, we conduct marketing research and, as a rule, receive secondary information. If necessary, we conduct a field study, which chiefly concerns the market of Pridnestrovie and Moldova," said Ionku.
He also noted the increased need to seek the assistance of distributors in obtaining up-to-date information in foreign markets. It was also necessary to evaluate the specific requirements of the society relating to the values of the population, national and religious characteristics of consumption.
"This, for example, applies to kosher certificate requirements for certain markets. It is also difficult to supply alcoholic beverages to Muslim countries. If Western European countries prefer dry wines, in Eastern Europe semi-dry wines are preferred," added Ionku.
He believes that compliance with all market demands is a key to the success of exports. In order to get to know the plant's customers, Kvint delegations regularly present its products on international trade venues. In a few weeks, Kvint will participate in the international exhibition Anuga, which takes place in Germany's Cologne from 7 to 11 October.
"Such events offer great prospects. As a rule, we come home with a few contracts signed after such exhibitions," concluded Ionku.
Representatives of the textile industry also spoke about their achievements. Tirotex is one of the largest textile manufacturers in Europe. The factory produces 50 million metres of fabric per year, which is one and a half times the length of the equator.
The company exports its goods to 35 countries of the world, most of which are European. According to the deputy head of the foreign economic relations department, Denis Vasilenkov, Tirotex has remained for European customers a brand including production facilities.
"We work with big customers. They provide us with their sketches and design, and we make goods for them. On the one hand, such work is a great pleasure, but on the other hand, it is constant stress because the withdrawal of one client can bring down sales at once," \explained Denis Vasilenkov.
The Tirotex manager underscored that there was a large layer of small wholesale clients in Europe who need Tirotex goods. To that end, they opted for Poland.
"There is a city of Łódź at the crossroads of the west and the east of the country, to which customers come from Russia, Baltic states and Europe. The main advantage is a free trade zone which allows you to pay VAT only when the transaction is concluded," said Vasilenkov.
Another unique enterprise in Pridnestrovie is export-driven. Aquatir is a large-scale complex for the breeding and industrial processing of sturgeon. The company produces up to 1.7 tonnes of black caviar a year on the basis of intensive technologies.
According to the sales manager, Alexander Zelinsky, Aquatir breeds 350 tonnes of sterlet, Russian sturgeon, beluga and bester.
"Our company is chiefly export-driven. We export goods from west to east. For example, we supply 35-40 kg of black caviar every two months to 11 states in the USA," said Zelinsky.
This time frame is due to bilateral permits for the export of black caviar. Based on the internal regulations, each country has its own time limit for the issuance of the relevant documents, which may vary from a day to three months.
"Speaking about East, we have seen positive trends in exports to China, Indonesia and Japan," said Zelinsky.
He revealed one more business secret: intensive work is now under way to establish contacts with Australia and New Zeland.
It is only Moldova where the company has issues. According to Zelinsky, the company's products are exported to any country of the world as "made in Moldova".
If we sell caviar to right-bank retailers, Kishinev says: 'Tiraspol is not Moldova.' Caviar is an excise product and subject to VAT," said Zelinsky.
He noted that a can of Russian sturgeon caviar cost $100, its net cost in Moldova was $150, and it was natural that every network wanted to earn money. As a result, consumers bought products at a minimum cost of $175-200.
Summing up the meeting, Vladimir Isayev noted that the main objective had been achieved.
"The main thing is that small businesses have been able to hear the necessary information that is impossible to find in books and Internet. They have also learnt what tricks can be used to enter new markets,' concluded Isayev.
