"We know for sure that the crisis is a time to rethink"

Anton Zakharov, Regional Export Manager at Svetovye Tekhnologii, told us how Moscow manufacturers work in global markets, what trade barriers they have to overcome, and how they arrange their operations during the pandemic.
Anton Zakharov
Regional Export Manager at Svetovye Tekhnologii
– Anton, when did you realize that you were ready to export your products?

– Our company began to develop exports right after it was founded in the late 90s. Export development is one of our strategic objectives. In August 1998, when the crisis was underway, we launched the first plant in Russia to produce lighting fixtures, and today the company has four plants, including those in India, Spain, and Ukraine. We also established an office and logistics complex in Germany.

Today we deliver products to almost 30 countries of Europe, Asia, the Middle East and North Africa. Our key market is Asia, especially India, where we opened a factory and an office center in 2011. Of course, our work in foreign markets benefits from the fact that we are confident in our products quality confirmed by international and European certificates.
– How are your products perceived abroad?

– The quality of our products is comparable to that of major European brands. However, today's reality often makes us face certain trade barriers that may sometimes inhibit our progress in target markets. This includes the products conformity to the specialized market requirements, logistics and transportation costs, the absence of representatives in the country, import duties, etc. Businesses are able to cope with these problems, but as a result, the final cost may increase, which may reduce the competitiveness. Therefore, we, as most Russian exporters, find the state support very important.

I would also note that the estimated global production of lighting equipment makes about 60 bn EURO, more than 40% of which refer to a single country, China. Its closest competitor, the USA, accounts for a share three times lower than that of China. And Russia is the last among the top15 producers, with a share of 0.9%. Based on the positions of our main competitors, we found the value for money, which is the advantage of cooperating with our company. By the way, last year our Indian factory was recognized as the best innovative lighting company of the year at the Business Leaders Summit 2019.
Our Indian factory was recognized as the best innovative lighting company of the year
at the Business Leaders Summit 2019
– How did the pandemic affect your company?

– We continue to work, although in a way that is new to us. Office employees have switched to remote work, but the processes remain uninterrupted. We are communicating with clients and counterparts, developing new projects, products, ideas. Indeed, someday the crisis will be over. Our company was established in the midst of the crisis in 1998, and survived three more crises later. And we know for sure that this is the time to rethink the established business processes and to search for new directions. We are fulfilling all our obligations to our partners and despatching shipments. Today, our company is actively participating in the construction of socially important facilities, such as an infectious hospital in New Moscow, a nuclear power plant, and the new stations of the Moscow metro.

APROPOS

ONLINE SUPPORT MEASURES FOR EXPORTERS

Moscow has launched pilot projects to support exporters in the current epidemiological situation.


Opportunities:
  • arranging individual online negotiations with foreign customers;
  • conducting online business missions;
  • holding individual online meetings with mentors;
  • selecting trusted foreign agents;
  • performing the primary diagnostics of market potential;
  • studying industry and product markets.

Advantages:
  • online networking at all stages of the export project life cycle;
  • representing Moscow manufacturers in foreign markets;
  • organizing exports at no additional cost.
– What are your plans for the near future?

– At the moment, we are cooperating with the Mosprom Center to arrange a series of training webinars for our existing customers in Egypt, Qatar and Algeria. During these sessions, we share lighting solutions for industrial facilities and transport infrastructure facilities, where all power supply and electric lighting systems are exposed to dust, vibration, mechanical stress, and sometimes detergents. We also draw the partners' attention to the difficult operating conditions of lamps at the temperatures of +50 and sometimes +60 degrees, as it is required in the Middle East.

Of course, the logistics costs, especially in case of long-distance exports, make a significant part of the expenses, and we are actively using tools to partly reimburse them. We are trying to work closely with specialized export support centers. And thanks to the center support, our company was included in the list of the regionally important manufacturers implementing corporate programs to increase competitiveness. At the leading industry exhibition Productronica 2019, which represents the electronic industry in its entirety, we demonstrated our lighting developments of various types, including clean rooms, industrial, commercial and architectural lighting, at the Moscow collective booth. We hope that these initiatives will help us to significantly increase our footprint in international markets.
Company by Numbers
Production area
84 000 sq. m
more than
Product range
9000 modifications
more than
Sales geography
Russia, the CIS, Europe, Asia, the Middle East and North Africa
Company total
consolidated turnover
EUR
100 m
5%
the EU, mainly Germany and Austria
5%
Kazakhstan and Ukraine
India
20%
Russia and Belarus
70%
E-mail: pressprom@mos.ru
Audience: 16+