Building Your Brand in Russia | International Marketing & Global Insights

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Presentation from a recent international marketing and ecommerce breakfast hosted by Borderfree in NYC

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Building Your Brand in Russia | International Marketing & Global Insights

  1. 1. Building Your Brand in Russia
  2. 2. 2 Contents Opportunity Understanding the Russian consumer Reaching the Russian consumer Marketing case studies: KupiVip, ASOS Recommendations
  3. 3. 3 Russia is a HUGE market • Broadband Households: 13.3M (25% households) • Mobile Phone Users: 108M (76% population) 77.5M Internet users 142.5M Population
  4. 4. 4 Millennial cities are key to ecommerce growth • Russia’s millennial cities (over 1 million people) will lead ecommerce growth • High concentration of Internet-savvy consumers, with more coming online every day • Concentrated populations make it cheaper and easier to deliver packages to consumers. 0 2 4 6 8 10 12 14 Moscow St Petersburg Novosibirsk Yekaterinburg Nizhny Novgorod Population (million) Population (million)
  5. 5. 5 The time to act is now Ecommerce retail sales are taking off • Ecommerce accounts for only 2% of country’s overall retail sales B2C • Ecommerce sales will grow by over 21% in 2013 • Number of digital buyers will expand from 26.2 million in 2013 to 32.7 million in 2016 • Biggest growth potential in millennial cities • In 2012 Russians spent $700M in cross border sales
  6. 6. 6 Understanding the Russian consumer
  7. 7. 7 Consumer behavior What are Russians doing online?
  8. 8. 8 Consumer behavior Preferred payment methods
  9. 9. 9 Russians have an appetite for luxury brands Top selling brands
  10. 10. 10 Shoppers Without Borders Borderfree goes to Russia
  11. 11. 11 We’re listening… Customer feedback Why can’t we buy UGGS online 3-4 shipping time frame is enough Starting to use PayPal online Shop help most important resource
  12. 12. 12 Reaching the Russian consumer
  13. 13. 13 Russians prefer local media players Most visited websites in Russia • Dominant players in Russia are all homegrown firms • Yandex controls search engine market • Social media hugely popular –VK leading social destination • 78% internet users will access a social network at least once a month
  14. 14. 14 Yandex at a Glance #1 Search leader in Russia • 61% market share in Russia Number 1 search leader • 44 million unique visitors per month • 44% Russian users homepage Number 1 Internet destination • 180k + advertisers • 58% online ad market share Leading Online Advertising Platform Largest Russian Internet business • 40% Russian searches originate on Yandex Market • Yandex number 1 contextual ad placement in Russia • Optimizing SEM strategy on Yandex crucial to growing ecommerce business • SEM unit costs are lower however conversion rates are also generally lower
  15. 15. 15 Media Landscape Media split in Russia 51% 14% 4% 16% 14% 1% TV Internet Radio Press Outdoor Other • Fastest growing EU marketing for online media spending • TV still number 1, but digital has surpassed print in terms of spending
  16. 16. 16 Media Landscape Russian magazines sorted by circulation 1. 980K 2. 730K Rank Name Circulation 3 Maxim 390,000 4 Psychologies 360,000 5 Hello! 350,000 6 Good Housekeeping 230,000 7 National Geographic 230,000 8 ELLE 220,000 9 Cosmopolitan 200,000 10 Igromania 180,000 11 Men’s Health 160,000 12 Playboy 160,000 13 Vogue 150,000 14 L’Officiel 150,000 15 Elle Girl 140,000 16 XXL 140,000 17 Esquire 125,000 18 Marie Claire 125,000 19 Harper’s Bazaar 120,000 20 Tatler 120,000 21 Forbes 120,000 22 OK! 120,000 23 InStyle 120,000
  17. 17. 17 Media Landscape Online Digital Platforms • Shopping Forums • Shophelp.ru • Bigshopforum.ru • styleforum.ru • mixshopping.net • Shoppingzone.ru • Magazines • Vogue.ru • Tatler.ru • Bazaar.ru • Trendspace.ru • Lookatme.ru • Women’s portals • Woman.ru
  18. 18. 18 Media Landscape Shophelp.ru - Advertising • Online shipping community for “shopaholics”. Biggest resource in Russia for shopping. • Over 1,000,000 unique visitors per month, 10 million page views • Display opportunities – promote shipping times/security/top brands Over 8 million page views on display units
  19. 19. 19 Media Landscape Online digital platforms
  20. 20. 20 Media Landscape PR Key Bloggers • Miroslava Duma (owner, Buro) • Vlasta Gurieva (Sophiegoesaround) • Alexandra Rukovskaya (shopper) • Anastasia Maltseva (shopper) • Laura Djaga (Vogue social editor) • Live Journal blogging network • Buro 247 • Sophiegoesaround
  21. 21. 21 Marketing Case Study: KupiVip
  22. 22. 22 The Russian retail landscape Key players: Domestic and Cross-border Market Leaders Cross-border 1. 30% 2. 28% 3. 18% 4. 15% 5. 5% 1. 2. 3. 4. 5. 6. Rutaobao.com 7. Ebaytoday.ru 8. Bay.ru 9. Asos.com 10. DX.com 11. Tinydeal.com 12. Mango.com 13. Yoox.com 14. Dealply.com 15. Victoriassecret.com
  23. 23. 23
  24. 24. 24 • One of the first online retailers to emerge in Russia, launched in 2008 • Launched as a member only Russian e-shopping club with daily flash sales • 5 years later – 8.5 million members, $200 million net revenue with the aim of being a billion – dollar company by 2017 • Opened up Russian consumers to the world of online shopping About KupiVip
  25. 25. 25 KupiVip: Marketing Strategy Brand awareness and direct response Brand awareness Strong PR presence across Russia Brand partnerships Sponsorships Strategic alliances Display campaigns TV advertising Social Media Direct response Extensive SEM presence Yandex and Google Mail.ru Email acquisition – focus on consumer data Loyalty/Promotion driven
  26. 26. 26 KupiVip: Social Media Brand presence on domestic and international sites • Largest following on VK.COM • Targeted ads across VK • Content replicated across networks
  27. 27. 27 KupiVip: Partnerships Moscow Fashion Week sponsorship Cross platform magazine collaborations
  28. 28. 28 KupiVip: Partnerships Mnogo.ru – Russia’s first bonus program Loyalty scheme powered by Russia’s coherent bank
  29. 29. 29 Marketing Case Study: Asos
  30. 30. 30
  31. 31. 31 • Improve conversion rate with Russian paid search programs with translated landing pages • Educate the consumer on safety of shopping via (credit card payments) • Delivery times and security • Delivery costs • How to shop online • How To Order - Russia ASOS
  32. 32. 32 ASOS: Marketing Strategy Building brand awareness
  33. 33. 33 ASOS: Search Strategy Building brand awareness
  34. 34. 34 ASOS: Marketing Strategy Focus on local sites
  35. 35. 35 Summary of Recommendations 4 Quick Wins: Building your brand in Russia 1. Develop a paid search strategy on both Google and Yandex 2. Translate landing pages to optimize conversion rates 3. Focus on brand awareness through local media players 4. Build a social strategy that includes local social media players
  36. 36. borderfree.com

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