CEOBoris Lepinskikh
russiane-commerce
marketoverview
E96.RUThe Global E-commerce Summit, 2015
The results of 2014: growth
$10,6 BSource: Data Insighte, Russian e-commerce. Annual Report 2014
size of the market
excluding cross-border trade
The Global E-commerce Summit, 2015
The results of 2014: growth
The
shar
e of
e-c
omm
erce
in th
e re
tail
sec
tor o
f the
cou
ntry
(201
3), %
Growth rate 2012-2016 (CAGR),%
5
Russian e-commerce
to grow has the potential
times
The Global E-commerce Summit, 2015
The results of 2014: growth
billio
n ru
b
0
150
300
450
600
2010 2011 2012 2013 2014
marketcontinuesto ascend
35%+Source; Data Insighte, Russian e-commerce. Annual Report 2014The Global E-commerce Summit, 2015
The results of 2014: audience
Source: Public Opinion Foundation, 2014
user
, milli
on p
eopl
e
2005Fall
2006Fall
2007Fall
2008Fall
2009Fall
2010Fall
2011Fall
2012Fall
2013Fall
2014Fall
the annual growth of the number of users, % (18+)
penetration, %
The Global E-commerce Summit, 2015
audience and Internet penetration in russia
The results of 2014: audience
Source:TNS Web Index, 2015The Global E-commerce Summit, 2015
dynamics of internet penetration (Monthly Reach,%)
MoscowSaint PetersburgRussia
37%+growthcustomers
Source: Data Insighte, Russian e-commerce. Annual Report 2014Y/Y
The Global E-commerce Summit, 2015
The results of 2014: audience
The Global E-commerce Summit, 2015
25,4 Mthe numbersof customersin the age18-64 years
Source: Data Insighte, Russian e-commerce. Annual Report 2014
old
The results of 2014: audience
The Global E-commerce Summit, 2015
Source: Data Insighte, Russian e-commerce. Annual Report 2014
7,7 number ofpurchasesper customerper year
The results of 2014: audience
The Global E-commerce Summit, 2015
New users live outside Moscow
Source: TheRunet
Moscow
St.Petersburg
Villages
Big Cities(1MM)
500K-1MM
100K-500K
<100K
The Global E-commerce Summit, 2015
The results of 2014: audience
runet will reach 80m users by 2015
New geographic markets
Engaging traditional buyers to online buyers
Source: PricewaterhouseCoopersThe Global E-commerce Summit, 2015
The results of 2014: audience
price
deliverytrust
stock
Usabilityrussia5keycriteria
forchoosingonlinestorein
Source: PricewaterhouseCoopers
The results of 2014: audience
pricedelivery
trust
stockUsability
The Global E-commerce Summit, 2015
5 UK
keycriteria
forchoosingonlinestorein
195 M of orders
cross-border
delivered,including
The results of 2014: cross-border
The Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014
The results of 2014: cross-border
115%+ Growthof cross-border
tradeThe Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014
$1,6 bshareof cross-bordershopping
The results of 2014: cross-border
The Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014
the number
fromeorders
abroad
47,7MThe results of 2014: cross-border
The Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014
72%from China
The results of 2014: cross-border
The Global E-commerce Summit, 2015
The shareof orders
Source: Data Insighte, Russian e-commerce. Annual Report 2014
share of the total online-market
share of cross-border sales in the category
share of domestic orders
сlothing for adults
electronics white goods & household goods
The results of 2014: top categories
children's productscomputers, laptops & accessories
Source: Data Insighte, Russian e-commerce. Annual Report 2014The Global E-commerce Summit, 2015
top-5 product categoriesrussia e-commerce market
2007 2007-2011 2011-2015Federal competition
• Market consolidation;• Strengthening players from regions;
• Strong regional competition;
• Price competition;• First M&A;• Moscow companies starts shipping to regions.
• First local startups;
• Offline retail entry e-commerce only for branding;
• High margins.
GrowthVacuum
The Global E-commerce Summit, 2015
Features: regional markets
roadmap regional markets
Features: marketing
The Global E-commerce Summit, 2015
targeting really important
12
Russia has 10 cities withpopulations over 1M people
the distance betweenthe end of more than2000 kilometers
Features: logistics
The Global E-commerce Summit, 2015
barсelona-tallin3317km
Features: logistics
Features: logistics large in size
no advanced 3PL-operatorslogistics extremely expensiveOnly one operator with national coverage - state postal service
practically everybody company has to build its own logistics
The Global E-commerce Summit, 2015
3226kmown logistics network of E96
Features: localization
The Global E-commerce Summit, 2015
localization really important
Source: Levada-Center, 2014
only 11% of russiansare more or lessspeak englishIn 2014 Aliexpress hit the top-10 most popular websites in Russia
Features: localization
The Global E-commerce Summit, 2015
localization really importantInternational retail sales now represent 63% of total sales with international revenues jumping 47% year-on-year in the company's fourth quarter. It comes after Asos launched a site in Russia on 1 May 2013.
«EssentialRetail.com
Features: marketing
The Global E-commerce Summit, 2015
local not globalLocal services number one in Russia
VK.comyandex.ru VSfacebooK.com
google.comyandex.market
google merchantyandex.money pay pal
Features: marketing
The Global E-commerce Summit, 2015
cream skimming
acquisition
Fast growing Russian stores focus on new customers
Features: payment
The share of prepaid orders
The share of orders paid cards
preferredis mostCash ondelivery
payment
The Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014
method
Features: behavioral characteristics
The Global E-commerce Summit, 2015
up to 20%of the orders are made by phone.Each order online store need to be confirmed by phone.
About us: local touch, global ambitions
2007 - company foundation
2013 - net revenue 4,6 B rubles (+65% Y/Y)
2013 - raising round А from IQ One Holdings for expansion and business development
2014 - 200 000 SKU
2013 MAU - 1 MM (+75% Y/Y)
2011 - start conquering regions
2014 - Top-15 most effective online stores (Forbes Russia)
The Global E-commerce Summit, 2015
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