Report on the participation in XXXV Federal Trade Fair, Moscow (Russia) – Sept. 21-24, 2010

 

Wool & Woollens Export Promotion Council(WWEPC), an apex Organisation under Ministry of Textiles, Govt. of India, engaged in Export Promotion of Wool & Wool Blended Products from India participated in the 35th Edition of  Federal Trade Fair  held in Moscow, Russia from Sept 21-24, 2010. The participation was under Focus CIS Programme of the Govt. of India to give thrust to India’s Woollen Exports to the CIS Region. The Four day event  provided immense opportunity to the exporters to exhibit their products and to know about modern fashion trends within and around the world. Shri Sanjay Chawla, Senior Assistant represented the Council in the event.  A list of member Participants is placed at Annexure- I.

 

About Federal Fair

The Federal Fair is held in Moscow, Russia twice every year (in September and February)  and can be termed as the gateway to Russian and other CIS Markets. The venue for the Fair is All Russian Exhibition Centre situated in the Centre of Moscow and is one of the biggest fair grounds in the world. Participants from almost all countries of the world participate in the fair and the fair provides unique opportunity to the participants to interact with leading business houses, , buyers, buying agents and whole sellers in Russia and nearby CIS Countries. The Extremely cold weather conditions in the region are an natural catalyst for huge consumption of Wool & Wool Blended Products.

 

Councils Participation:

Wool & Woollens Export Promotion Council (WWEPC) is a regular participant in this fair. The Council had participated in the 2007, 2008 and 2009 editions of this exhibition also and this year also the Council participated in this fair because of the good turnout of buyers on the previous occasion. WWEPC had booked a space measuring  36 Sq. mtrs for participation in Federal Fair Moscow in Hall No. 70 and the stalls of the Council were at a very good location. The member participants of the Council had taken good quantity of samples of, Shawls, Stoles, Knitwears etc alongwith them for display in the exhibition. The Councils stalls were very well decorated with the samples of member exporters. The products at display included a wide variety of traditional and modern Indian Wool & Wool Blended Shawls, Stoles, Scarves and Mufflers.  Federal Fair does attract a huge number of quality buyers and as during the past editions of this exhibition, this year too, a huge number of  number of importers visited the stall. On 21st Sept, 2010 i.e. the first day, the response was good and a good number of consumers, general visitors and buyers visited the Councils stall. They were of the point of view that the Indian products are very good in quality and design and liked the products very much. They also appreciated the fact that the quality of Indian Products is quite superior than their counterparts and were willing to negotiate with Indian exporters to finalize business deals. The members had fruitful discussions with the buyers and carried out good business negotiations Russian and CIS Buyers. Buyers from not only Russia but from surrounding CIS and European Countries like Italy, Switzerland etc also visited the Councils Stalls and good business materialized during the fair.  Some trade enquires were also received which are likely to materialize in to firm orders.

 

World markets including Russia  has just come out of the worst recession ever and with the improvement of consumer confidence and reduction in unemployment, the demand in these countries is slowly on the rise and it can be presumed that Russia and neighboring CIS Countries are also showing signs of recovery. Thus with the improvement of economic conditions, the demand of Indian Products as well as Indian Woollen Products is likely to rise in future.

 

Suggestions:-

 

 

1                    Russian is the main language for communication in Russia and for the purpose of communicating with Russian Buyers, services of the Interpreter are must. Publicity Material like pamphlets, Visiting Cards etc. published in Russian are must and members should carry these alongwith them whenever visiting Russia for business purposes

 

2                    Member exporters can seek the help of Indian Embassy in Moscow for getting the database of Russian buyers/businessmen.

 

 

3                    Most of the Stall in the Exhibition were offering free Snacks/Tea/Refreshments etc to the visitors. The Delegation should also spare some funds for this purpose.

 

4                    The weather in Russia is very cool (temperature remains in the range of -10 to 4 Degrees Celsius in winter) and therefore, due care should be taken by the visitors to Moscow to carry Woollen Garments with them.

 

5                    One should take care of his belongings while traveling through Public Transport as criminal activity in Russia though not as high as it used to be in the past, is still alarming

 

 

About Russia/Moscow:-

 

Moscow is situated on the banks of the Moskva River, which flows for just over 500 km through the East European Plain in central Russia. 49 bridges span the river and its canals within the city's limits. Moscow's architecture is world-renowned. Moscow is also well known as the site of Saint Basil’s Cathedral, with its elegant onion domes, as well as the Cathedral of Christ the Savior and the Seven Sisters. All-Russian Exhibition Centre formerly known as All-Union Agricultural Exhibition  and later Exhibition of Achievements of the National Economy  though officially named a "permanent trade show", is in fact one of the most prominent examples of Stalinist-era monumental architecture. Among the large spans of recreational park areas are scores of elaborate pavilions, each representing either a branch of Soviet industry and science or one of USSR's republics. Even though, during 1990s, it was, and for some part still is, misused as a gigantic shopping centre (most of the pavilions are rented out for small businesses), it still retains the bulk of its architectural landmarks, including two monumental fountains (Stone Flower and Friendship of Nations) and a 360 degrees panoramic cinema. Moscow has always been a popular destination for tourists. Some of the better known attractions include the city's UNESCO World Heritage Site, Moscow Kremlin and Red Square, which was built between the 14th and 17th centuries.

 

Government

Moscow is the seat of power for the Russian Federation. At the center of the city, in Central Administrative Okrug, is the Moscow Kremlin, which houses the home of the President of Russia as well as many of the facilities for the national government. This includes numerous military headquarters and the headquarters of the Moscow Military District. Moscow, like with any national capital, is also the host of all the foreign embassies and diplomats representing a multitude of nations in Russia. Moscow is designated as one of only two Federal cities of Russia (the other one being Saint Petersburg). Among the 83 federal subjects of Russia, Moscow represents the most populated one and the smallest one in terms of area

 

Economy

 

Moscow is one of largest city economies in Europe and it comprises approximately 24% of Russian GDP. Moscow has the lowest unemployment rate of all federal subjects of Russia, standing at just 1% in 2010, compared to the national average of 7%. Moscow is the undisputed financial centre of Russia and home to the country's largest banks and many of its largest companies, such as Russia's largest company Gazprom. Moscow accounts for 17% of retail sales in Russia and for 13% of all construction activity

 

Opening of Showroom Cum Warehouse

 

Problems like Custom Clearance, Language Barriers, Inadequate Transit Facility and Banking Facilities i.e. difficulty in realization of payments are disheartening the exporters. Most of the buyers enquired the participants whether they have a Showroom in Moscow. The Member participants requested that Council should take immediate action to open Showroom Cum Warehouse in Moscow as early as possible to boost the exports of woollen products.

 

India has enjoyed very warm and cordial relations with Russia and other CIS Countries since the Soviet era. After disintegration of the USSR,  India’s exports to these countries have taken a back seat and other countries like China &  Korea have occupied a major portion of trade markets in these countries. These countries have also opened their showrooms in Moscow. If the Council should open warehouse cum showroom in Moscow the problems of the exporters will be reduced to some extent.

 

 

Due to cold climatic condition, there is a big demand of wool & wool blended products in CIS Region and has ample scope for increasing exports from India. Before the disintegration of Soviet Union into member States which now form a part of CIS Region, the share of export of wool & wool blended products to USSR was about 60% of the total export. Keeping these things in mind, the Govt. of India has assigned Focus status to CIS Region as the Region presents huge potential as a consumer of Indian Products including Wool & Wool Blended Products.

 

Acknowledgements

 

The member participants are thankful to Shri Ashok Jaidka, Chairman of Wool & Woollens Export Promotion Council for his guidance and support in organizing the participation in the above exhibition. The members are also thankful to Shri R K Gupta, Officiating Executive Director, WWEPC for coordinating with the all concerned and arranging participation in this fair.