Issue 149 2019-02-27 Souscrire

How Can Taiwan Break Into The Russian Market!?

Post Interplastica 2019 Reflection

Russian Market

Previous years, international sanctions during the Ukrainian crisis have deeply affected the Russian market. The drop of oil prices and the instability of the Russian Ruble has plunged Russia into an economic recession. However, this year, Russia is believed to be in their economic recovery state.
PRM’s surveys conducted throughout the exhibition has proven this to be true. Most visitors weren’t only just visiting the exhibitions, but they were determined to make a deal on the spot. On top of that, our exhibiting booth was endlessly packed with buyers showing interest towards Taiwanese manufacturers. Further justifying the above statements.

According to Messe Düsseldorf, the developments in major consumption segments have opened a growing demand in Plastics and Rubber products. For previous exhibitors who have maintained their relations with their business partners during the recession, are now paying off as the market is now growing.

This year, exhibitors shared with PRM, visitors had been very aggressive. Exhibiting machines were all instantly sold on the first day of Interplastica 2019; Visitors didn't want to wait, they want the machines NOW. Not only were they willing to instantly pay full price for the exhibiting machines, they tried to ask exhibitors to not sell machines to their competitors. This clearly shows the Plastics and Rubber industry is exponential growing, and how competitive the market currently is.

For companies affected by ecological restrictions, Russia has yet to have regulations regarding this issue. Not that they don’t care about the environment, but current market solutions is still debatable.

Taiwanese Manufacturer opportunities

As the world is moving into industry 4.0 to greatly decrease the use of human resources, the market need in Russia may be different. Industry 4.0 comes at a cost, a much greater cost.

High-end machines may cost more than 3 times the price of a Taiwanese machine, but it has the advantage of less need for human operators. This may be a much targeted need for high salary countries like the U.S.A and European countries, but may not be the case for Russia. Buying two machines with a greater production rate at a cost of more operators may be a more feasible investment return choice.

This opens a lot of opportunities to Taiwanese manufacturers. Through visitor feedback from Interplastica 2019, many visitors don’t actually want to go through agencies. They much prefer contacting manufacturers directly. However, the language barrier has proven to be very troublesome. Another problem to face is the logistic disadvantages Taiwanese companies must face compared to European manufacturers. If Taiwanese comes up with solutions for these issues, the Russian market is looking very bright for Taiwan.

Conclusion

In conclusion, Interplastica 2019 has proven to be a great success. As cold as the weather may be, and as tough as Russians may look, they are quite similar to Taiwanese people; They are full of warmth and passion. Although it takes time and relations to break the ice, Taiwanese and Russians are definitely suitable business partners.

All the above information are personal opinions derived from attendees of Interplastica. If you feel the information is offensive or inaccurate, don’t hesitate to let us know and we will do what we can!

Interviews

【Evropolymer Trading】

If you can't see the video, please Click here

Interviewee：Andrey Habibulin / Managing Director
Company Type：Agent

Evropolymer Trading is a local Russian agency representing Polystar. Let us get an in depth inside look on their perspectives of the Russian market. In this interview, Andrey Habibulin shares with us the trend of local demands and how the economic situation is shifting in Russia.
We had an introduction to the Polystar’s new machine: The Cutter compactor plastic recycling machine (HNT-V). You can click HERE for any inquiry.

【VDMA - German Mechanical Engineering Industry Association】

If you can't see the video, please Click here

Interviewee : Natallia Esche / Bundesinformant
Company Type : Association

Acting as exhibition informant for German companies, Natalia has collected various German companies’ perspectives on the Russian market. Let us hear in detail how German’s tackled Russia’s previous economic recession.