Client Background

The client is a leading domestic construction machinery manufacturer, primarily producing excavators and loaders, with an annual output value exceeding 1 billion yuan. As competition intensifies in the domestic market, the company has chosen Russia as the first target market in its globalization strategy. However, facing the unfamiliar Russian market, the client faces three core challenges: first, complete unfamiliarity with the Eurasian Economic Union's product access rules, leaving them unsure how to address compliance requirements such as EAC certification; second, a lack of local channel resources, making it difficult to find reliable dealer partners; and third, the substantial initial investment in inventory places a heavy burden on the company's cash flow. How to establish a foothold in this unfamiliar market has become the first hurdle in the client's globalization process.

LEO Solutions

To address the core pain points of its clients, Leo has assembled a dedicated service team to provide end-to-end support, from compliance and distribution channels to logistics and finance：

Compliance Support: Overcoming the First Hurdle to Market Access
LEO Certification Team provides full-service assistance with EAC and GOST certifications, helping clients prepare technical documents, connect with testing institutions, and complete sample testing to ensure products fully comply with Eurasian Economic Union standards. What originally required a 6-month certification period has been shortened to 3 months thanks to LEO's professional operation, giving clients valuable time to seize market opportunities.

Channel expansion: Finding the right "insiders"
Leveraging its 20-year experience in the Russian market, LEO has precisely selected and connected clients with three core regional distributors—covering the three key regions of Moscow, St. Petersburg, and Siberia. We not only provide a shortlist of candidates but also offer full assistance throughout the business negotiations, contract review, and agency agreement signing process, ensuring fair and reasonable terms and helping clients establish a reliable local sales network.

Logistics Services: Building a Stable Supply Chain
LEO has tailored a "rail + road" multimodal transport solution for its clients: goods are shipped from domestic factories to Manzhouli, transited through the Transbaikal hub, and finally stored in the Moscow overseas warehouse. Key nodes are operated independently by LEO to ensure full control over the transportation process. The Transbaikal hub provides temporary warehousing and LCL (Less than Container Load) services, while the Moscow overseas warehouse supports drop shipping and rapid replenishment, significantly improving supply chain flexibility.

Supply chain finance: Solving the funding dilemma
To address the financial pressure on clients' initial inventory buildup, LEO offers in-transit cargo financing services. Once the goods are shipped from the factory, LEO releases working capital to the client based on the value of the goods, allowing the inventory tied up in transit to "come alive." This financial support enables clients to confidently stock up on sufficient inventory at once, capitalizing on the peak sales season in the Russian market, while simultaneously ensuring the normal operation of their domestic business.

Results Showcase

With the full support of Leo, the client achieved better-than-expected results in expanding into the Russian market:

• Market entry cycle: shortened from the usual 6 months to 3 months, achieving product launch a quarter ahead of schedule.

• First-year sales: Exceeded $8 million, far exceeding the initial target of $5 million.

• Distributor network: Successfully signed 3 core distributors, covering the three major Russian market regions

• Logistics efficiency: Average delivery time from the domestic factory to customers in Moscow was 22 days, leading the industry.

• On-time delivery rate: Reached 98%, winning the trust of distributors and end customers.

• Inventory turnover rate: Increased by 35%, significantly improving capital utilization efficiency.

• Financing support: Cumulative release of over $2 million in working capital, enabling the company to confidently accept large orders and build up inventory.

Customer testimonials

“Before entering the Russian market, we were completely uncertain. Leo not only helped us solve practical problems such as certification, channels, logistics, and funding, but also made us feel what true ‘fighting side-by-side’ means. They are not just a logistics provider; they are our ‘own people’ in Russia.”

— Head of Overseas Business, Client

Case Insights

This case fully demonstrates LEO's core values: we are not only a service provider, but also a pioneer in globalization practices. From compliance and market access to channel development, from logistics support to financial assistance, LEO helps companies overcome the numerous obstacles of unfamiliar markets with systematic solutions. For manufacturing companies venturing overseas for the first time, finding a partner who truly understands the market, has resources, and can implement solutions is often more important than going it alone. LEO is precisely such a partner—walking alongside you, helping you establish yourself.