Yabao Road is known for its bargains and the Russian Market, which is situated to its north. (Photo by Feng Yongbin/China Daily)
Ding Peihua, a professor of Russian studies at the Shanghai Academy of Social Sciences, says that a decade or so later, in the wake of the world financial crisis, Russia's domestic market has turned sluggish, and that was exacerbated by the instability of the rouble and high inflation.
"There used to be four Russian restaurants and bars close to the Ritan Hotel, but now most are closed or have been sold by their Russian owners who have returned to Russia because business is so bad," lobby manager Yin says.
Wang Meng, a Beijing clothing trader who has done business in Yabao Plaza for more than 10 years, says: "We used to put chairs outside for the benefit of customers standing in long queues, but now there is simply nobody there."
A pedicab driver waiting in front of Tianya Plaza, said he used to have very high takings every day but recently he has been lucky if he takes 200 yuan a day. As he talked to China Daily he repeatedly beckoned prospective fares leaving the plaza. His appeals, in Russian he says he taught himself, met with few responses.
"I feel bad about business, and I barely get a customer or two a day."
A leather gloves vendor who asked to be identified only by his surname, Cai, working in a 5-square-meter store on the ground floor of Yabao Plaza, says: "The only thing I can do is stay in this small shop waiting for bargain hunters. If I don't I'm going to lose more money because I pay my annual rent a year in advance. I really hope business picks up."
In 2012 Ma Jia, an expert on cultural and creative industries, surveyed more than 60 shops in the market and concluded that one possible remedy for Yabao's ailments would be for its merchants to diversify from simply being daoye, or intermediaries, and to go onto the front foot and provide services in design as well as production and sales.
Ma and a local businessman, Sheng Jinpeng, resolved to begin to make things happen, and in 2013 they set up a chamber of commerce, aiming to strengthen the competitiveness of local brands that could help each other find ways to revive their businesses. The chamber now has about 100 members.
Over the years the clothing industry in the area has matured from being barely regulated, and these days it is akin to a well-oiled machine, even if it needs a lot of attention. From the outset one of the first priorities Ma and Sheng set was for the area's businesses to promote themselves together.
Another local businessman, Tu Xiusheng, has experience in this kind of promotion. He has established the trademark Miegofce, and promotes it by combining traditional business methods and e-commerce. He has also set up research and development centers in Beijing, Moscow and Milan, he says, one of whose aims is to keep abreast of fashion trends. He has a display shop near Red Square, Moscow, in which customers can inspect and try on clothes before ordering online.
Another of the area's traders who has plowed headlong into e-commerce is Zheng Riwei, owner of the clothing brand Icebear, whose main product is down jackets. Last year on so-called Singles Day, Nov 11, which has turned into the busiest day of the year for Chinese e-commerce, he had a range of more than 20 products in his store on AliExpress, the global transactions-based retail website run by Alibaba Group, and everything sold out within 30 minutes, his takings being $300,000.
Yabao Road's businesses are now thinking and acting differently, Zheng says.
"We're now reaching customers directly, and we are active internationally through the internet and trade shows."
Icebear and 16 of its fellow Yabao Road companies signed up to attend the 2016 Collection Premiere Moscow, one of the best known Eastern European fashion fairs, in the Russian capital from Aug 31 to Sep 3. The chamber organized for a China pavilion at the event for the first time, allowing Chinese trademarks to display their wares.
Ma, now vice-president and secretary-general of the Yabao business chamber, lauds Tu and Zheng as pioneers, business people who are open-minded, willing to take risks and who will never give up no matter the difficulty of the challenge.
"For nearly 30 years Yabao Road, a private market that sprang up in the center of Beijing, has stood as a beacon for trade and friendship between China and Russia. It's something we can both cherish. Not only will it never disappear, it will remain the most recognized name card for private trade between our two nations."
