On July 19, 2019 ART Delivery managers and experts gave a workshop suppliers and customers on the sidelines of this year's Collection Premier Dusseldorf (CDP) fashion exhibition. The workshop focused on the coding requirements introduced by Russian regulatory authorities regarding clothing and footwear and highlighted integrated logistic solutions that ART Delivery offers.
Featuring multiple business meetings and negotiations, the CPD exhibition allowed fashion market players to address a broad range of current issues. During the workshop, ART Delivery'
s experts Natalia Miloserdova
and Ramil Suleymanov
discussed the latest market developments with both suppliers and retailers and made logistic recommendations to the workshop participants. ART Delivery has been importing clothing and footwear to Russia since 2006. Currently, the company is participating in a coding pilot project on imported clothing. With access to first-hand information, ART Delivery is uniquely placed to monitor market changes and share breaking news with its partners. Russian authorities tighten control
Russia's regulatory authorities are gradually pushing the local retail market out of the shadows by tightening control over retail sales and making online cash registers mandatory. Digital product coding is well under way, and the list of coded goods is constantly expanding. As a result, market players are faced with rising upgrade costs.
2019 has proved a challenging year for the fashion clothing and footwear industry in Russia: real income is declining, taxes are growing and consumer demand is falling. On the other hand, competition between retail chains and stores is mounting. Consequently, reducing costs becomes an absolute must for any business to ensure its survival. Change is inevitable
During the workshop in Dusseldorf, ART Delivery's experts made a presentation on product coding, certification of goods (importing samples and running tests in line with current legislation) and e-document management requirements.
It has been 2 years since major retailers switched to direct delivery contracts. It appears that now it is time for medium- and small-size businesses to follow suit. No one is immune to changes in business processes considering the mounting pressure applied by supervisory and tax authorities. As for digital product coding, it is likely to serve as a catalyst for the inevitable transition to new rules of the game.
During the transition period, it is important for market players to stay in close contact with logistic operators as the latter can offer a full range of import and delivery services as well as provide their customers with accurate information about recent changes in legislation and new regulations regarding product coding. Importers are able to code goods
In order to switch over to digital coding, retailers will have to overhaul their procurement, supply chain and reporting systems. It would be no exaggeration to say that European suppliers are at a loss: apparently, they expect importers to resolve all coding issues. Fortunately, importers are able to have footwear coded prior to customs clearance, as expressly stipulated by the Russian Government's Resolution No 860 dated 05.07.2019.
Clothing coding will be implemented as a pilot project until December 1, 2019 as per Government Resolution No 790 dated 22.06.2019. As of this date, coding will become mandatory pursuant to Government Order 792-р dated 28.04.2018.
ART Delivery is participating in this pilot project in partnership with Kontur
, a leading Russian IT developer and a certified e-document management and tax data operator. Kontur and ART Delivery are committed to developing coding solutions for imported goods with minimal expences to suppliers and retailers. Transforming the business model
Being at the forefront of change, ART Delivery offers cost-effective import and coding solutions designed to help the company's partners and customers to adapt to the new realities in a short time. ART Delivery's proposal for suppliers
ART Delivery's proposal for retailers
- We deliver goods as consolidated shipments, expediting delivery to Russia, cutting logistic costs and shortening the payment collection cycle
- We certify goods in line with the recently introduced legal requirements (official imports of samples and sample testing in accordance with the regulations of the Customs Union)
- We are committed to developing a coding solution for imported clothing and footwear at no cost to suppliers
- We provide accurate product name translations into Russian to generate and assign correct GTIN codes upon product registration in Russia in accordance with GS1 standards. The GTIN is required for generating relevant DataMatrix digital codes
- We offer representative and advertising services regarding the local production of printed materials and promotional gifts as well as shop window and showroom decorating services in Russia
- We import samples for exhibitions and showrooms under temporary admission
- We provide "a free warehouse"– free storage and consolidation at the warehouse in Berlin, import and selling from the warehouse in Moscow
- We arrange contractor background checks
- In association with Kontur, we provide consulting services regarding the upgrade of payment terminals to relay information on coded goods, e-document management (mandatory for handling coded goods) and appropriate IT solutions
- We review foreign trade contracts and consult our clients on legal and accounting issues
- We import goods into Russia on an all-in-one basis (consolidation warehousing, coding, customs clearance and delivery all over Russia)
- We import goods into Russia against a customer's contract, offering a full range of logistic and brokerage services
- We guarantee short delivery terms for goods shipped from Europe to Moscow (7 days)
- We offer reduced rates if customers confirm orders for the entire season
We will continue to inform you about the progress of the coding pilot project and coding solutions available to suppliers and retailers in our next newsletter.