Ecommerce and search engines in Russia

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Agenda

Who we are

Ecommerce in Russia

Yandex

Optimising for Yandex

The challenges

Ecommerce versus high street

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Who is Search Laboratory?

Global search marketing experts

150+ clients, 18 countries working in 35 Languages

“Science” NOT “Art” – ROI & profit focused

Ethical, transparent and sustainable approach

Smart software & smarter people

150 staff

Multi-channel & ecommerce specialists

Why Russia?

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Russia: A country online

57.81m internet users

80m by 2014

71% of the population online

23% access the web via a mobile device

Ecommerce not restricted to the big cities

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Russia: A country buying online

More than ¼ million ecommerce orders per day

Ecommerce market to be worth £19.3bn in 2014, rising to £$23.2bn in 2015

Foreign online purchases totalled $1bn in 2011

6% of internet users have already bought from foreign ecommerce sites

10 purchases per year

Just the tip of the iceberg…

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Who’s buying online and what?

Female 30 to 39 years oldAverage age of online consumer is 44 Households with incomes >RUB 30K per month more likely to buy onlineElectronics and books are the most popularFood is not a big ecommerce player Average purchase RUB 3,200

Sources: Morgan Stanley@searchlabs

Not just Google…

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4th most popular search engine in the world

95m monthly users (+60m in Russia)

4.84bn searches per month

Most viewed entity in Russia

45% overall online advertising share

75% market share by 2020

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62%

26%

11%

YandexGoogleMail.ruRamblerBing

87% of online consumers research purchases on search engines

+80% compare prices

Yandex.Market is the starting point for 40% of commercial searches

Yandex.Market set to contribute over 10% of entire ecommerce sales in 2013

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Mail, Maps, Photos, Videos, Placard, Catalogue, Events, Work, Metrix & Taxi

Ranks websites using Citation Index

Indexes foreign websites for searches typed in English

Ethically-focused search engine

Warns users when a website contains doorways

Doesn’t allow pop-ups or floating ads

Protects users from viruses and phishing scams

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paid advertising

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Direct.Yandex is the search engine’s advertising platform

Straightforward natural ad text: “Bike sale. Catalogue of bikes and accessories”

paid advertising

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Optimising for Yandex

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Localising Your Website

Products Business

Logic

Website

SEO

PPC

Display

Affiliates

Email

Generate traffic

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Don’t use automated translation services

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How Russians search

In Russian

Brands (‘Sony’ or ‘Komatsu’) generally searched in their original language

Search plays a part in off-line purchases

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Cultural Nuances

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Localisation and SEO

On-going living process – NOT a one off exercise

Yandex likes…

Good grammar and well-written copy

Russian domains

Relevant links

Natural content

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Yandex dislikes…

Over-optimised websites

Paid links

Spam

Pop-up windows

‘Artificial’ attempts to optimise

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The challenges

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Trust

See and touch

Product quality (fakes)

Products never sent

Used items, when advertised as new

Returns and exchanges

Generations

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Delivery

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Courier service a popular alternative to the national mail

National mail have a reputation for being slow

Payment

Cash-on-delivery is the main method of paying

Credit / debit cards mistrusted

Money.Yandex or WebMoney

Data

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Who’s doing ecommerce well

Ozon ‘Russian Amazon’

Potential sales of $1bn by 2014

2,100 pick-up points in 130 cities

80% cash on delivery

Amazon and Ebay

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How Russians use the internet

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Social

34.5m visit at least one social platform monthlyAverage of 10.4 hours a month spent on social mediaVK.com is the most popularFacebook increasingly popularTwitter linked up with YandexThose succeeding in ecommerce have strong social presence

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Ecommerce versus the high-street

Russian ecommerce set to grow to ~ $36bn by 2015

Just 4.5% of total offline retail sales… could rise to 7% by 2020

In the UK this is already around 10%!

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Summary

Russia is an internet giant that’s waking up

Yandex is the key to selling online in Russia

To sell online in Russia, you must understand how Russian’s search

Payment and trust are two major challenges to Russian ecommerce

Russian ecommerce is ~ 10 years behind the UK

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Whitepaper

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