Ecommerce and search
engines in Russia
© Search Laboratory Ltd 2013. All rights reserved.
Leeds Tel: +44 113 350 4362
Lond...
Agenda
Who we are
Ecommerce in Russia
Yandex
Optimising for Yandex
The challenges
Ecommerce versus high street
@searchlabs
Who is Search Laboratory?
Global search marketing experts
150+ clients, 18 countries working in 35 Languages
“Science” NOT...
Why Russia?
@searchlabs
Russia: A country online
57.81m internet users
80m by 2014
71% of the population online
23% access the web via a mobile de...
Russia: A country buying online
More than ¼ million ecommerce orders per day
Ecommerce market to be worth £19.3bn in 2014,...
Who‟s buying online and what?
Female 30 to 39 years old
Average age of online consumer is 44
Households with incomes >RUB ...
Not just Google…
@searchlabs
@searchlabs
4th most popular search engine in the
world
95m monthly users (+60m in Russia)
4.84bn searches per month
Most viewed entit...
87% of online consumers research purchases on search engines
+80% compare prices
Yandex.Market is the starting point for 4...
Mail, Maps, Photos, Videos, Placard, Catalogue, Events, Work,
Metrix & Taxi
Ranks websites using Citation Index
Indexes fo...
paid advertising
@searchlabs
@searchlabs
Direct.Yandex is the search
engine‟s advertising platform
Straightforward natural ad
text: “Bike sale. Catalogue of
bikes ...
Optimising for Yandex
@searchlabs
Localising Your Website
Products Business
Logic
Website
SEO
PPC
Display
Affiliates
Email
Generate traffic
@searchlabs
Don‟t use automated translation services
@searchlabs
@searchlabs
How Russians search
In Russian
Brands („Sony‟ or „Komatsu‟)
generally searched in their
original language
Search plays a p...
Cultural Nuances
@searchlabs
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
@searchlabs
Yandex dislikes…
Over-optimised websites
Paid links
Spam
Pop-up windows
„Artificial‟ attempts to optimise
@searchlabs
The challenges
@searchlabs
Trust
See and touch
Product quality (fakes)
Products never sent
Used items, when advertised as new
Returns and exchanges
G...
Delivery
@searchlabs
Courier service a popular
alternative to the national mail
National mail have a reputation for
being ...
Payment
Cash-on-delivery is the main method of paying
Credit / debit cards mistrusted
Money.Yandex or WebMoney
Data
@searc...
Who‟s doing ecommerce well
Ozon „Russian Amazon‟
Potential sales of $1bn by 2014
2,100 pick-up points in 130 cities
80% ca...
How Russians use the internet
@searchlabs
Social
34.5m visit at least one social platform monthly
Average of 10.4 hours a month spent on social
media
VK.com is the ...
@searchlabs
Ecommerce versus the high-street
Russian ecommerce set to grow to ~ $36bn by
2015
Just 4.5% of total offline retail sales…...
Summary
Russia is an internet giant that‟s waking up
Yandex is the key to selling online in Russia
To sell online in Russi...
Get expert help - Whitepaper
@searchlabs
Whitepaper
@searchlabs
Contact Details
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Why UK online retailers should be looking to Russia

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Russia is a growing internet market that is set to be worth £20bn by 2014 but is still years behind the UK. Britain's online retailers could and should take advantage of this...

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  • Very interesting report and definitely a market to keep an eye on: http://informerly.com/popular?utf8=%E2%9C%93&query=russia
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  • Internet penetration in Russia is consistent. It’s not just a case that everyone in Moscow is online but provincial cities are not. For example 70% of Moscow’s near 12m population are on the internet, and in Krasnoyarsk where the population is only slightly over 1m the penetration is also 70%Moscow and St Petersburg ecommerce markets growing at 25% per annum. Regional audiences growing faster at 40%. Both very large rates and this shows the potential for selling online in Russia
  • Tip of iceberg: ecommerce currently only accounts for around 2% penetration
  • Online shopper most likely to be female and 30 to 39. In the US this is 45
  • Google are not the be all and end all of search engines, and they’re not even number one in Russia
  • Yandex is the Russian Google. So if you want to sell online in Russia you need to be on Yandex!
  • Yandex dominates the Russian search market with 62.45 market share, compared to Google’s 27.16. To put into context Google has a market share percentage in the US and western Europe in the high 80sThis may be the first time some of you in the room have heard of Yandex… everyone has heard of Microsoft before… last year Yandex overtook Microsoft’s search engine Bing as the world’s fourth largest search engine (the third most popular is Baidu)Yandex overtook Russia’s top TV chanelPervyKanal, in daytime audience numbers in 2012In December 2012 Yandex handled nearly 5bn search queries – this total is only going to rise… if you want to expose your product to the Russian market you must be optimised for Yandex
  • Yande.Market is a shopping tool (like a feed) which has categories of different products
  • Like Google, Yandex is much more than just a search engine. There are Yandex Mail etc. (Placard = lists of performances and films etc.) (Catalogue = search specific categories such as sports, blogs etc. Being on catalogue can improve your ranking). (Metrix = Google Analytics)… You can even order a taxi from Yandex.
  • This is what paid advertising on Google
  • Localise your website from UK to Russian
  • Attention do not use the stairsSausage roll
  • Top example from the Borne films: Russian letters don’t make any sense whatsoever Left: Don’t stand under the bridgesRight:
  • A lack of understanding when it comes to cultural nuances are the downfall for a lot of businesses attempting to expand internationally, and the same is true with Russia…Russian postcodes only consist of numbers… buildings are divided in corpuses
  • English saying “A bad workman blames his tool” Russian is “A bad dancer always complains about his tight shoes”
  • If expanding to Russia you need mother-tongue Russian speakers to make sure your website copy is well-written
  • Over-optimised sites = keyword stuffing etc. Re pop-up windows: Some Russian sites have pop-up windows that appear as social notifications
  • [Marina]
  • [Marina]Russian consumers more than other major countries are put off buying online due to a desire to see and touch the product prior to purchasingtalk about why Russians mistrust ecommerce, using the bad examples from your notes. However, don’t mention the names of the websites, just why they are badAlso mention the difference in generations, using your notes
  • [Marina]Use notes on why delivery puts off Russians
  • [Marina]Cash-on-delivery, first offered by SPSR Express in 2001. SPSR are one of the leading express operators in Russia. 60%Carrying cash is much more common in Russia, not like the plastic world of chip and pins that we’re used to. A mistrust of credit and debit cards has been one of the things holding back the Russian ecommerce industry… however this is gradually changing. A study last year by MasterCard stated that 74% of Russians possessed a bankcard, with 40% using this to make a purchase Third party payment systems more popular than direct bank transfers Lack of credit/debit card usage has restricted retailers’ ability to collect payment data from their customers, adds another challenge when it comes to building consumer loyalty
  • [Marina]Over 2m products on saleOzon deals with the Russian ecommerce challenges by: [pick-up points, cash on delivery]Amazon and Ebay the two most established foreign retailers in Russia
  • [John]Tendency to presume that everyone uses the internet in the same way in every country… this is not the case [give some examples of other countries who use the internet differently]
  • Yandex has signed up with Twitter so that tweets now appear in the SERPs. You can also follow people on Twitter without ever leaving Yandex. Social media buttons for businesses now part of the rich snippets
  • Example of social media prominence in the Yandex SERPs
  • Russia may experience a similar high street decline like that seen in the UK… but not for some time. The UK high street decline has really been felt in the past 9 months (Blockbuster, HMV, Jessops etc). We’re at 10% ecommerce sales penetration, so working off the same model Russia is still around a decade away from this… this is not cut and dry though and would be naïve to think Russia will go same way as UK (bigger country, more rural regions etc)
  • Why UK online retailers should be looking to Russia

    1. 1. Ecommerce and search engines in Russia © Search Laboratory Ltd 2013. All rights reserved. Leeds Tel: +44 113 350 4362 London Tel: +44 207 147 9980
    2. 2. Agenda Who we are Ecommerce in Russia Yandex Optimising for Yandex The challenges Ecommerce versus high street @searchlabs
    3. 3. 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
    4. 4. Why Russia? @searchlabs
    5. 5. 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 @searchlabs
    6. 6. 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… @searchlabs
    7. 7. Who‟s buying online and what? Female 30 to 39 years old Average age of online consumer is 44 Households with incomes >RUB 30K per month more likely to buy online Electronics and books are the most popular Food is not a big ecommerce player Average purchase RUB 3,200 Sources: Morgan Stanley @searchlabs
    8. 8. Not just Google… @searchlabs
    9. 9. @searchlabs
    10. 10. 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 @searchlabs 62% 26% 11% Yandex Google Mail.ru Rambler Bing
    11. 11. 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 @searchlabs
    12. 12. 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 @searchlabs
    13. 13. paid advertising @searchlabs
    14. 14. @searchlabs
    15. 15. Direct.Yandex is the search engine‟s advertising platform Straightforward natural ad text: “Bike sale. Catalogue of bikes and accessories” paid advertising @searchlabs
    16. 16. Optimising for Yandex @searchlabs
    17. 17. Localising Your Website Products Business Logic Website SEO PPC Display Affiliates Email Generate traffic @searchlabs
    18. 18. Don‟t use automated translation services @searchlabs
    19. 19. @searchlabs
    20. 20. How Russians search In Russian Brands („Sony‟ or „Komatsu‟) generally searched in their original language Search plays a part in off-line purchases @searchlabs
    21. 21. Cultural Nuances @searchlabs
    22. 22. Localisation and SEO On-going living process – NOT a one off exercise
    23. 23. Yandex likes… Good grammar and well-written copy Russian domains Relevant links Natural content @searchlabs
    24. 24. Yandex dislikes… Over-optimised websites Paid links Spam Pop-up windows „Artificial‟ attempts to optimise @searchlabs
    25. 25. The challenges @searchlabs
    26. 26. Trust See and touch Product quality (fakes) Products never sent Used items, when advertised as new Returns and exchanges Generations @searchlabs
    27. 27. Delivery @searchlabs Courier service a popular alternative to the national mail National mail have a reputation for being slow
    28. 28. Payment Cash-on-delivery is the main method of paying Credit / debit cards mistrusted Money.Yandex or WebMoney Data @searchlabs
    29. 29. 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 @searchlabs
    30. 30. How Russians use the internet @searchlabs
    31. 31. Social 34.5m visit at least one social platform monthly Average of 10.4 hours a month spent on social media VK.com is the most popular Facebook increasingly popular Twitter linked up with Yandex Those succeeding in ecommerce have strong social presence @searchlabs
    32. 32. @searchlabs
    33. 33. 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%! @searchlabs
    34. 34. 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 @searchlabs
    35. 35. Get expert help - Whitepaper @searchlabs
    36. 36. Whitepaper @searchlabs
    37. 37. Contact Details

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