Export VS Pandemic

Crisis gives you the opportunity to revise your approaches and plans, see your weaknesses and start working on them. Due to the pandemic, manufacturers all around the world have lost markets for their products. Each of them is forced to look for a new way to reach the consumer. In turn, the governments of various countries are developing new support measures. Let us discuss the existing world practices.

Non-financial support

According to the China Council for the Promotion of International Trade (CCPIT), the foreign trade in the Middle Kingdom has a sufficient safety margin to maintain sustainable growth and high competitiveness. To stabilize supply chains and develop new business formats, CCPIT creates online platforms for exhibitions and negotiations.

The Korea Trade and Investment Promotion Agency also relies on the global online trading platform to support exports. With the help of this resource, small and medium-sized enterprises will be provided with the special assistance in finding business partners abroad.
The restrictions are temporary,
and, currently, business needs to be transformed

Financing

The USA EXIM Bank offers exporters a range of support measures based on its own programs. Firstly, the bank exempts those having failed to perform interest payment obligations, for a period of up to 30 days. Secondly, American exporters are exempted from many requirements they cannot fully comply with, namely the requirements to obtain a certificate, to provide financial statements and much more.

The Canadian economy is deemed to be based on small and medium-sized enterprises. Today, the country's federal programs are able to provide more than USD 10 bn of additional support to manufacturers. США. This measure is aimed to make borrowed funds available via any support institution (EDC, BDC) or private banks.
Natalya Shuvalova
CEO, ANO Mosprom
"To date, the Center has developed a number of new services that can be acquired without taking part in offsite foreign events. The Moscow export-oriented companies will be able to discuss problematic export cases in the Mentor's Parlor or use the Office-in-Office service. Manufacturers will be assigned verified foreign agents that will not only represent the Moscow companies' interests in foreign markets, but also monitor the work of existing foreign distributors and buyers. The Center launched a client's personal account on the website (prom.moscow), where each Moscow manufacturer can submit an online application for individual support."

New way of development

Of course, after the pandemic peak is over, the purchasing power will not immediately return to the pre-crisis period. Now, all industries are focused on increasing profitability, preserving the customers pool, and attracting new customers in the future.

More and more, international companies are starting to release products or provide services that are in demand due to the pandemic. The factories of the premium LVMH holding have begun producing an antiseptic gel to be delivered to the French healthcare system. The automaker Lamborghini will re-equip several workshops in Italy to produce surgical masks. They will be sent to the Bologna hospital treating the COVID19 patients. And Dyson will begin producing CoVent portable artificial respirating units. In Russia, the cosmetics manufacturers Faberlic and Svoboda went the same way of diversification.

Here is another example: in Italy, winemakers and cheesemakers that were previously selling all their products through HoReCa, are uniting and forming joint baskets of various products by various manufacturers for home delivery. Although it is not cheap, the demand is huge!

The current epidemiological situation in the world, closed borders, the restrictions, as well as the international air and rail traffic suspension directly affected the export activities of manufacturing companies. However, we understand that the restrictions are temporary and, currently, business needs to be transformed, including in the field of foreign economic activity. A lot depends on the company initial readiness for a drastic digital transformation and the strategy that leaders will adhere to.
Corporate Issue, Moscow Department
of Investment and Industrial Policy
E-mail: pressprom@mos.ru
Audience: 16+