Russian retail & online-retail - statistics 2 quarter 2013

RUSSIAN RETAIL & ONLINE-RETAIL

CURRENT STATISTICS 1st - 2nd QUARTERS 2013

SEPTEMBER 2013

2

ABOUT CENTER OF STRATEGIC RESEARCH

«ENTER VISION» CENTER OF STRATEGIC RESEARCH ENTER VISION was founded in 2011 by Enter company.

Our key target is to increase transparency of Russian retail & online-retail markets for its players.

Consolidating information from our experts and conducting research of market trends & performance, Enter Vision provides analytics of 3 types:

1. Market & industry reports 2. Competitive environment analysis 3. Ad-hoc research

CONTACTS: Website: WWW.ENTER.RU/RESEARCH E-mail: [email protected] Facebook: WWW.FACEBOOK.COM/RESEARCH.ENTER SlideShare: WWW.SLIDESHARE.NET/RESEARCH_ENTER

«CUSTOMER-CENTRISM: METRICS, CASES, FACTS»

• Client service metrics: NPS, CSI, TLR, FCR, TRI*M

• Worldwide client service cases: Zappos, Costco, USAA, Edward Jones, Southwest airlines, Starbucks and others

«WORLDWIDE AND RUSSIAN RETAIL MARKETS 2012-2016»

• Retail and e-commerce in Russia, USA, China: volumes, growth rates, forecasts 2009-2016

• Perfumes, Furniture, Jewelry markets: key players, retailers product mix, website traffic analysis

June 2013

February 2013

«WORLDWIDE RETAILERS: BUSINESS RESULTS FOR THE 1ST QUARTER 2013»

• Quarterly index of retail: analysis of 75 international and Russian retailers by revenue, gross margin, turnover ratios, market capitalization indexes

July 2013

October 2012

«CURRENT TRENDS IN ONLINE RETAIL: FACTS AND FIGURES»

• Online retail indexes: costs of delivery by regions, payment methods penetration, product mix analysis, average prices etc.

http://www.enter.ru/RESEARCH

mailto:[email protected]

http://www.facebook.com/research.enter

http://www.slideshare.net/RESEARCH_ENTER

3

RUSSIA: MACROECONOMIC INDICATORS

GDP

2012 2013 2011

* Rosstat estimation,06.09.2013 Source: Center of Strategic Research «Enter Vision» according to Rosstat.

MACROECONOMIC SITUATION INDICATES THE DECREASING OF RUSSIAN ECONOMY GROWTH RATES

+4,3% +1,2% *

Nominal GDP In current prices (inc. inflation), bln rub.

Retail share in nominal GDP In current prices (inc. inflation), %

Real GDP growth, year over year In constant prices (excl. inflation), %

+1,2%

11 925 13 348

14 646 15 880

13 802 15 013

16 350 17 434

14 988 16 111

35,1% 34,3%

33,5% 34,3% 34,0% 34,1%

33,6%

35,0% 35,0% 35,2%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Retail Non-Food Retail * Top segments of non-food retail by growth rate in 2Q 2013 (year over year)

USA

European Union (27)

China

South Africa

Brazil

Russia

59,4% 36,3%

27,1%

Ювелирные украшения и часы

Телекоммуникационная техника

Мебель

10,3% 11.2% 6,3%

10,2%

9,6% 7,6%

9,9% 8,9%

11,8% 10,9% 13,2% 8,3%

3,4% 3,0% 6,4% 5,0%

14,0% 13,6% 17,6% 20,0%

WORLDWIDE AND RUSSIAN RETAIL RETAIL GROWTH RATES IN 2Q 2013

12,2% 9,3%

5,5%

Ювелирные украшения Товары для дома и DIY

Мебель

16,0% 13,9%

12,3%

Парфюмерия и косметика Товары для красоты и здоровья

Товары для дома и DIY

10,8%

10,1%

5,3%

Одежда и обувь


Парфюмерия и косметика

2Q 2013 to 2Q 2012 (Year over year)


Source: Center of Strategic Research «Enter Vision» according to US Census, Eurostat, NBSC, IBGE, Statistics South Africa, Rosstat

WORLD RETAIL GROWTH RATES CONTINUE TO SLOW DOWN

11,7% 27,7%

34,6%

Книги, газеты и журналы Автозапчасти

Спортивные товары

4

Jewelry & Watches1

Household Goods & DIY1 Furniture1

Apparel & Footwear1

Health & Beauty Products1

Electronics1

Jewelry & Watches1

Telecommunication Appliances1

Furniture1

Apparel & Footwear1

Household Goods & DIY1

Perfumes & Cosmetics1

Perfumes & Cosmetics1 Health & Beauty Products1

Household Goods & DIY1

Sports & Outdoor1

Auto Parts1

Books, newspapers & magazines1

* Non-food retail does not include retail sales of automobiles and fuel.

1,0% 0,8%

-0,5% 1,0% 0,5% 0,1% 0,5%

NON-FOOD RETAIL

5

RUSSIAN RETAIL MARKET DYNAMICS & STRUCTURE

2012 2013 2011

THE STRONGEST SLOW DOWN IS SHOWN IN NON-FOOD RETAIL GROWTH RATE

FOOD RETAIL

Food retail sales In current prices (inc. inflation), bln rub.

Non-food retail sales In current prices (inc. inflation), bln rub.

Source: Center of Strategic Research of Enter according to Rosstat Growth in current prices (year over year), %

3Q

2 050 2 200 2 299 2 555 2 211 2 381 2 530 2 840 2 477 2 676

2 135 2 373 2 602 2 890 2 479 2 731 2 963 3 260 2 762 2 995

4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q

+8,2% +12,4%

+15,1% +9,7%

1 700 1 846 2 002 2 231 1 955 2 090 2 250 2 524 2 150 2 262

NON-FOOD RETAIL (excl. auto & fuel sales)

+13,2%

Non-food retail sales (exc. auto & fuel) In current prices (inc. inflation), bln rub.

+8,3%

2012 2013 2011

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q

2012 2013 2011

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q

6

RUSSIAN RETAIL MARKET REGIONAL STRUCTURE

Ural FD

+12,5%

Siberian FD

+ 8,8%

Far Eastern FD

+ 11,2%

NON-FOOD

FOOD

50% 50%

RETAIL SALES IN 2Q 2013

Source: Center of Strategic Research «Enter Vision» according to Rosstat Growth in current prices (year over year), %

55% 45%

53% 47% 51% 49%

56% 44%

55% 45%

Food retail share, %

Non-food retail share, %

GROWTH OF RETAIL SALES IN 2Q 2013 (year over year), %

North Caucasian FD

+ 12,8%

52% 48%

Volga FD

+ 12,0%

Southern FD

+10,6%

TOTAL IN RUSSIA + 10,9%

53% 47%

Food retail share, %

Non-food retail share, %

53% 47%

1000 – 1499 RUR bln. > 1500 RUR bln.

500 – 999 RUR bln. 300 – 499 RUR bln. < 300 RUR bln.

Central FD

+10,4%

North Western FD

+10,7%

7

RUSSIAN RETAIL MARKET TOP-10 REGIONS BY NON-FOOD RETAIL SALES IN 2Q 2013*

Region Non-food turnover** RUR bln.

* excluding Moscow and St. Petersburg ** non-food retail excludes retail sales of automobiles and fuel

17%

25%

53%

18%

18%

27%

39%

41%

54%

9%

15%

24%

27%

35%

45%

#1 Moscow region 166 -0,1%

#2 Sverdlovskaya region 124 +12,1%

#3 Krasnodar region 99 +9,0%

#4 Republic of Tatarstan 94 +3,3%

#5 Tyumen region 92 +15,3%

Top segments of non-food retail by growth rate in 2Q 2013 (year over year)

Growth rate in 2Q 2013 (year over year, in current prices)

Jewelry & Watches

Kids` Products

Electronics & Home appliances

Furniture

Books, newspapers & magazines

Kids` Products

Jewelry & Watches

Kids` Products


Auto Parts

Apparel & Footwear


Sports & Outdoor

Medical goods & Drugs

Apparel & Footwear

Source: Center of Strategic Research «Enter Vision» according to Rosstat. Growth in current prices (year over year), %

8

Region Non-food turnover** RUR bln.

35%

43%

64%

13%

13%

20%

6%

6%

29%

10%

12%

27%

34%

36%

42%

#10

#6 Rostov region 91 +9,3%

#7 Republic of Bashkortostan 84 +14,4%

#8 Samara region 76 +21,4%

#9 Nizhni Novgorod region 68 +11,9%

Chelyabinsk region 67 -3,6%


Apparel & Footwear


Auto Parts

Household Goods & DIY


Furniture

Kids` Products


Auto Parts

Perfumes & Cosmetics





Top segments of non-food retail by growth rate in 2Q 2013 (year over year)

Growth rate in 2Q 2013 (year over year, in current prices)

RUSSIAN RETAIL MARKET TOP-10 REGIONS BY NON-FOOD RETAIL SALES IN 2Q 2013*

* excluding Moscow and St. Petersburg ** non-food retail excludes retail sales of automobiles and fuel

Source: Center of Strategic Research «Enter Vision» according to Rosstat. Growth in current prices (year over year), %

3,6%

8,6%

6,0%

13,4%

14,2%

0,5%

-1,0%

8,2%

12,9%

7,5%

4,8%

10,4%

14,0%

9,4%

14,3%

13,4%

20,7%

31,8%

7,0%

13,4%

14,6%

24,0%

11,5%

15,4%

26,3%

Food

Non-food

Non-food (без авто, бензина)

Спортивные товары

Автозапчасти

Книги, газеты и журналы

Ювелирные украшения и часы

Косметика и парфюмерия

БТиЭ


Одежда и обувь

Мебель

Товары для детей

Food

Non-food

Non-food (exc. auto, fuel)

Sports & Outdoor

Auto Parts


Jewelry & Watches




Apparel & Footwear

Furniture

Toys & Games

9

RUSSIAN RETAIL MARKET GROWTH RATE IN RETAIL SEGMENTS

Electronics & Home Appliances include computers, mobile phones, audio, video- & foto equipment, TVs, Fridges, Wash Mashines and storage devices. Household Goods & DIY include textiles, household chemical goods, tableware, floor coverings, building materials.

ELECTRONICS & HOME APPLIANCES – THE ONLY SEGMENT OF NON-FOOD RETAIL WHICH SHOWED DECREASE IN PRICE LEVEL & INCREASE IN PHYSICAL VOLUME OF SALES

Growth in constant prices (excl. Inflation), year over year Growth in current prices (inc. inflation), year over year

1,6%

6,0%

5,5%

10,7%

20,1%

0,0%

3,0%

5,2%

13,6%

4,8%

3,0%

3,4%

8,8%

12,1%

11,4%

10,0%

28,1%

37,5%

8,3%

13,1%

16,6%

11,8%

7,4%

10,0%

24,4%

2,0%

4,7%

4,5%

14,5%

19,6%

5,4%

1,6%

3,8%

9,3%

4,0%

3,2%

0,3%

5,3%

12,4%

9,7%

8,3%

34,6%

27,7%

11,7%

10,8%

8,3%

7,7%

7,6%

6,7%

6,5%

11,3% 14,1% 10,5%



2012 to 2011 (Year over year)

Source: Center of Strategic Research «Enter Vision» according to Rosstat


10

RUSSIAN RETAIL MARKET GROWTH RATES OF SOME COMPANIES

Source: Center of Strategic Research «Enter Vision» according to Rosstat, financial reporting of the companies, mass media.

Revenue growth rate of taken companies, year over year

FOOD RETAIL


2012 to 2011 (Year over year)

9,4% 12,1% 12,4%

33,6% 22,4%

43,7% 26,0%

2,2%

30,4% 29,1%

21,9% 17,0%

7,5%

32,4% 26,4%

23,3% 21,5%

5,9%

10,0% 8,3% 13,4% NON-FOOD RETAIL

(excl. auto & fuel sales)

Magnit

Lenta

Dixy

O’KEY

X5 Retail Group

Detsky Mit

M.Video

K-Rauta

Growth rates in current prices (including inflation), year over year

27,8%

12,0%

-2,2%

40,8%

14,7%

5,5%

20,6%

20,0%

19,6%

11

RUSSIAN ONLINE-RETAIL INTERNET PENETRATION BY REGIONS

Central Federal District (excl. Moscow)

North West Federal District

(excl. St. Petersburg)

Southern Federal District+ North Caucasian Federal District

Volga Federal District

Urals Federal District

Siberian Federal District

Far East Federal District

Moscow

St. Petersburg

45

50

55

60

65

70

75

80

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

INTERNET PENETRATION GROWTH RATE, SPRING 2013 to SPRING 2012 (Year over Year), %

Average = 9%

Circle size corresponds to the population of federal district in 2012

Average = 59

DEVELOPED

DEVELOPING

Source: Center of Strategic Research «Enter Vision» according to Public Opinion Foundation (FOM)

Quelle.ru Apparel & footwear

Foto.ru Electronics & Home Appliances

Utinet.ru Electronics & Home Appliances

Sapato.ru Apparel & footwear

Sportmaster.ru Sports & Outdoor

Yves-rocher.ru Perfumes & Cosmetics

Euroset.ru Electronics & Home Appliances

Vseinstrumenti.ru Do It Yourself (DIY)

Butik.ru Apparel & footwear

Pleer.ru Electronics & Home Appliances

Holodilnik.ru Electronics & Home Appliances

Bay.ru Cross-border sales

E96.ru Mixed product range

Rutaobao.com Cross-border sales

Klubkrasoti.ru Perfumes & Cosmetics

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#12

#13

#14

#15

#16

#17

#18

#19

#20

#21

#22

#23

#24

#25

#26

#27

#28

#29

#30

Company Retail segment

Average weekly traffic, in thousand unique visitors

Weekly traffic growth 2Q to 1Q 2013, %

12

Sotmarket.ru Electronics & Home Appliances

Wildberries.ru Apparel & footwear

Ozon.ru Mixed product range

Svyaznoy.ru Electronics & Home Appliances

Ulmart.ru Electronics & Home Appliances

Mvideo.ru Electronics & Home Appliances

Lamoda.ru Apparel & footwear

Dns-shop.ru Electronics & Home Appliances

Wikimart.ru Mixed product range

Kupivip.ru Apparel & footwear

Eldorado.ru Electronics & Home Appliances

Exist.ru Auto parts

Enter.ru Mixed product range

Citilink.ru Electronics & Home Appliances

E5.ru Mixed product range

Source: Center of Strategic Research «Enter Vision». All the data is consolidated to be comparable and based on internet statistics

Company Retail segment

Average weekly traffic, in thousand unique visitors

Weekly traffic growth 2Q to 1Q 2013, %

584

539

503

497

477

420

416

411

399

382

333

314

307

280

276

RUSSIAN ONLINE-RETAIL TOP-30 ONLINE RETAILERS BY WEBSITE TRAFFIC IN 2Q 2013 (UNIQUE WEEKLY VISITORS FOR THE PERIOD FROM 1ST OF APRIL TILL 30TH JUNE 2013)

3 798

3 437

3 040

2 251

1 709

1 647

1 504

1 462

1 165

1 137

1 051

994

716

715

682

17%

-2%

-16%

-21%

1%

-5%

30%

-14%

-11%

-19%

-16%

15%

1%

-19%

-9%

20%

-25%

23%

17%

14%

-3%

-11%

-19%

-8%

-14%

-6%

-18%

-19%

48%

130%

Kids’ Goods

Sports & Outdoor

Furniture

Household Goods

Do It Yourself (DIY)

Jewelry & Watches


-45% -35% -25% -15% -5% 5% 15% 25% 35% 45%

13

* Traffic of retail segments is estimated by top-5 companies in each segment according to 1half 2013 (except «Auto Parts» - top-3 companies are taken: Exist.ru, 4tochki.ru, Emex.ru, and «Household Goods» - companies Mrdom.ru, Redcube.ru, Yuterra.ru, Domosti.ru)

Source: Center of Strategic Research «Enter Vision». All the data is consolidated to be comparable and based on internet statistics

RUSSIAN ONLINE-RETAIL WEBSITE TRAFFIC GROWTH BY SEGMENTS IN 2Q 2013 (year over year) *

GROWTH RATE OF AVERAGE UNIQUE WEEKLY VISITORS 2Q TO 1Q 2013, %

Home Appliances & Electronics

Apparel & Footwear Mixed product range

Average in 2Q = -4,8%

Average in 2Q = 553

DEVELOPED

DEVELOPING

300

100

2 000

2 500

200

400

1 000

Auto Parts



E-Commerce 7 870 RUR mln.

Games 780 RUR mln.

Soft 590 RUR mln.

Search 470 RUR mln.

0

5

10

15

20

25

30

0 100 200 300 400 500 600 700

AVERAGE DEAL, RUR MLN.

14 Source: Center of Strategic Research «Enter Vision» according to mass media, startupafisha.ru

DIRECT INVESTMENTS IN E-COMMERCE IN 1st HALF 2013

Circle size corresponds to the volume of investments made in 1st half 2013

60,0%

19,7%

16,2% 2,7% 1,4%

Online-retail

Agregators

Tourism

B2B

Other

15

KEY INVESTMENTS IN ONLINE-RETAILERS IN 2012 AND 1st HALF 2013

Lamoda

Shoptime

Ulmart

KupiVIP

Vseinstrumenti.ru

Wikimart

Obuv.com

Sotmarket

KupiVip

Mebelrama.ru

003.ru

HomeMe.ru

130

6 3

Access Industries, Summit Partners, Tengelmann

Media Capital

Ru-Net

Ventech

Investor Company Online Retail segment

Apparel & Footwear


Kids` Products

Apparel & Footwear

~ 10-15

Lamoda

Holodilnik.ru

Esky.ru

Trendsbrands.ru

Investments, $ mln.

Source: Center of Strategic Research «Enter Vision» according to Startupafisha.ru, Capital IQ; GP Bullhound

Apparel & Footwear

Apparel & Footwear

Electronics & Home Appliances

Apparel & Footwear

DIY

Mixed Product Range

Apparel & Footwear

Mixed Product Range

Apparel & Footwear

Furniture

Mixed Product Range

Furniture

Svoboda Corp., Koshigi Ltd.

IQ One (Utinet` managing company)

KupiVIP

Accel Partners

Zoom Capital

Media-Saturn

JP Morgan

Tiger Global Management

D. Kostygin, A. Meyer

AddVenture, ABRT, Mangrove Capital Partners

MCI Management

Rocket-Internet

TOTAL IN 2012 $340 mln.

TOTAL IN 1st HALF 2013 $154 mln.

50

45

38

30

30

25

15,5

10

6,5

5

~ 55-80

~ 15-20

ДАРИМ ВРЕМЯ ДЛЯ НАСТОЯЩЕГО. ЧЕСТНО. С ЛЮБОВЬЮ. КАК ДЛЯ СЕБЯ.

This research was conducted by Center of Strategic Research «Enter Vision» team: Alexander Prokhorov, Igor Kulyukhin, Zhanna Bogdashina, Vladimir Titov.

Electronic publication by Enter.ru «Retail & online retail in Russia: current statistics 1st - 2nd quarters 2013». Editorial office: 11/10 Ordjonikidze street. Managing editor: Kolotenko Andrei Vladimirovich. Authors: Center of Strategic Research «Enter Vision». Release date: 13.09.2013. Certificate of mass media registration: Эл. №ФС77-48467, date of issue: 06.02.2012. Issued by Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications. This research was conducted by «Enter» LLC exclusively for the purpose of informing and designed for private use. Any copying and utilization of materials of this research is welcomed and allowed without written consent upon condition of mentioning Center of Strategic Research «Enter Vision» (CSR Enter Vision, Enter Vision) as a source. All the information presented in this research is collected from publicly available sources. Editorial staff took all possible measures to ensure accuracy and actuality of information provided in this research. Editorial staff do not incur liabilities in case of any economic losses and damages resulted from utilization of materials of this research by third parties. Any additional information can be provided on demand. All trademarks belong to their rights holders and used according to legislation of Russian Federation. Copyright © ООО «Энтер»

Business

Russian retail & online-retail - statistics 2 quarter 2013