Russian eCommerce Market Overview and Trends

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  • Last year clothes and shoes became the biggest sectors by size of involved audience and keep growing when the other sectors remain stable or decrease.
  • Russian eCommerce Market Overview and Trends

    1. 1. E-commerce in RussiaMarket Landscape<br />
    2. 2. What Russia is….<br />Country with large territory<br />Customers behavior varies from region to region<br />Diverse in Technology<br />17 075 400 km² or11,46 % from total dry land<br />Ranked 9 in the world by population size (142 914 136 mlnpeople*)<br />* Source:Rosstat, 2011<br />
    3. 3. Currently every 2rd adult Russian is on the Internet<br />Monthly internet audience isabout50mln.<br />Yearly change<br />Month<br />+3,9 mln. <br />-13%<br />+10,1 mln. <br />Week<br />-6%<br />36,3 mln. <br />Day<br />+41%<br />Main growth – due to regions, 90% of new users outside of Moscow and Saint-Petersburg <br />3<br />Source:Internet in Russia. FOM. Winter 2010/11<br />
    4. 4. Key Investment Highlights<br />Large and High Growth Internet Market Opportunity<br />Growth in Internet Users vs. Penetration<br />Total Internet Users (MM)<br />Key Developed Markets<br />Russia 2014e<br />BRIC<br />Brazil<br />Internet Penetration 2010 (%)<br />Russia 2010<br />China<br />India<br />Internet users CAGR 2010-14e (%)<br />2010<br />2014e<br />Source: Euromonitor (January 2011), FOM (March 2011) for Russia<br />4<br />
    5. 5. Russia e-commerce key market facts<br /> 2011 e-commerce market estimated turnover 245 bln. Rub (6bln Euro)<br /> Annual growth by 17%<br /> The average purchase ~ 2700 Rub (65 euro) varies from 4700 rub (113 Euro) in large cities to 2000 rub (48 euro) in small towns<br /> 55% of internet users buy or research before shopping on line:<br /><ul><li>Online shopping browser – 24% (~12 mln. people)
    6. 6. Regular online shoppers – 11% (~6 mln. people)
    7. 7. Occasional online shoppers – 16% (~8 mln. people) </li></ul>Source:FOM. E-commerce market. March 2011.<br />5<br />
    8. 8. Buying trends<br />Large cities<br />80%<br />20%<br />60%<br />40%<br />Travel tickets <br />Percentage of people over 35<br />Computers & peripherals<br />Food<br />Older<br />Younger<br />CD&DVD<br />Cell phones <br />Books<br />70%<br />10%<br />50%<br />30%<br />Household appliances and electronics<br />Proportion of people buying each product category:<br /> More than 15%<br /> 7-14%<br /> Less than 7%<br />Clothes, shoes<br />Children’s products<br />Cosmetics & perfume<br />Small cities<br />Percentage of population in cities 1 mln+<br />6<br />
    9. 9. Popular product categories<br />as a % of all online shoppers<br />August 2010<br />+5 pp<br />-1 pp<br />-4 pp<br />0 pp<br />+2 pp<br />-1 pp<br />0 pp<br />-1 pp<br />-3 pp<br />0 pp<br />Source:FOM. E-commerce market. March 2011.<br />7<br />
    10. 10. 33% of payments are made remotely<br />as a % of all online shoppers<br />Advance payment<br />8<br />Source:FOM. E-commerce market. March 2011.<br />
    11. 11. This season<br />fashiontrends <br />in Clothing and Shoes <br />search…<br />
    12. 12. Fashion became more and more popular<br />80%<br />* Chart shows absolute yearly increase <br />10<br />
    13. 13. “Summer slump” – seasonal demand<br />11<br />Source: Words stat Yandex<br />
    14. 14. Interest level: 4 regions lead the way<br />Clothes<br />Shoes<br />12<br />Words stat Yandex<br />
    15. 15. Category interest level by gender and age<br />Clothes<br />Shoes<br />4%<br />11%<br />Women<br />79%<br />44%<br />Women<br />76%<br />16%<br />4%<br />1%<br />2%<br />Men<br />21%<br />Men<br />24%<br />11%<br />5%<br />1%<br />50% 40% 30% 20% 10% 0% <br />13<br />Source: Words stat Yandex<br />
    16. 16. Advertisement click rate<br />“Clothes” query<br />All queries<br />“Shoes” category<br />14<br />Source: Words stat Yandex<br />
    17. 17. Users response rate by age<br />48%<br />>45<br />35-44<br />25-34<br />18-24<br /><18<br />Clothes<br />Shoes<br />64%<br />36%<br />48%<br />50%<br />56%<br />15<br />Source: Words stat Yandex<br />
    18. 18. Popularity of TOP players in fashion<br />1<br />Bonprix<br />1<br />2<br />Otto<br />3<br />2<br />Quelle<br />1<br />3<br />Sapato<br />2<br />Wildberries<br />3<br />La Redoute<br />Lamoda<br />16<br />Source: Words stat Yandex<br />
    19. 19. Yandexfor <br />e-merchants<br />
    20. 20. Yandex.Direct<br />The largest service of contextual advertising placement in runet. <br />Guaranteed<br />Highest ranking ads<br />Key features<br /><ul><li>Impressions for interested users
    21. 21. Customised: on the positions, geo, time.
    22. 22. Managed: new bid-management strategies allow you to adapt the campaign efficiently based on their tasks
    23. 23. Effective: using in combination with Yandex.Metric allow you to manage advertising through conversion to achieve the goal
    24. 24. Tracking: using the “TargetCall” allows you to measure all communication channels</li></ul>Yandex.Direct<br />Organic search results<br />Contextual<br />displayads<br />18<br />
    25. 25. Yandex.Market<br />The leading comparison shopping service<br />Key featuresfor users<br /><ul><li>Price comparison and consumer reviews on shops and thousands of products throughout Russia with its description
    26. 26. Over 4,500 merchants
    27. 27. Advanced recommendation engine</li></ul>Database of thousands of product models and features<br />Public wish lists<br />Cross shop busket<br />Value proposition for merchants<br /><ul><li>Prioritizes display of offerings from shops in close proximity to users, increasing relevance to shoppers and advertisers</li></ul>Download of commodity items from the shops, automatic product categorization and identification<br />Strict merchant quality control<br />Yandex does not keep inventory<br />Related products<br />Summary<br />Product description<br />List of shops<br />Product accessories<br />Shops location on map<br />19<br />
    28. 28. User Services<br />Yandex.Spravochnik(GEO location)<br />The largest catalogue of organizations and cartographic service in runet.<br />Key features<br />Biggest cartographicalservice in Russia with geo-located information<br />‘Organization page’ provides users with contacts, address, website and other detailed information<br />Mobile application for most popular platforms<br />Value proposition<br />Premium position<br />Adv Message<br />Premium placement on the companies list relevant to user queries<br />Additional Adv message on the card with contacts of the selected organization is shown on the map<br />Extended list of placement were info is shown like search, mobile application etc. <br />20<br />
    29. 29. Yandexsociodemographic targeting <br />21<br />
    30. 30. Yandexsociodemographic targeting <br />A simple example…<br />We had:<br /><ul><li>Advertiser: clothes manufacturer
    31. 31. Project: Mail
    32. 32. Target audience: women</li></ul>We got:<br /><ul><li>Target audience coverage +66%
    33. 33. CTR +73%</li></ul>Key features<br />Selected trusted user profile with defined sociodemographic and behavioral patterns<br />Applied MatrixNet technologies algorithm to<br />Defining factors which are common for all users of a group (for each sociademographic group)<br />Evaluation of importance of these factors<br />Results extrapolation to all Yandex users, 100% of audience is covered<br />If the data is contradictory or not full and the system can not define users’ sociodemographic group ads are not shown to them <br />22<br />
    34. 34. Thank You!<br />Preston Carey<br />Director, Business Development<br />preston.carey@yandex.ru<br />+1 857.288.8762<br />@prestoncarey<br />

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