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Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
Cross-Border E-Commerce: Russian and International  Experience,  Opportunities & Threats
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Cross-Border E-Commerce: Russian and International Experience, Opportunities & Threats

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Cross-border e-commerce in Russia and across the globe.

Cross-border e-commerce in Russia and across the globe.

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  1. Cross-Border E-Commerce: Russian and International Experience, Opportunities & Threats October 2013
  2. Content • • • • • • • About Hermes – 3 slides Cross-border e-commerce in Russia: volume, dynamics – 5 slides Russia’s regions cross-border unique features – 3 slides Audience socio-demographic characteristics and customer opinion – 4 slides Global cross-border e-commerce – 3 slides Country cases – 4 slides Conclusions: cross-border e-commerce opportunities & threats – 4 slides
  3. About Hermes
  4. Hermes in European Delivery B2C Market (num. of parcels) Others Source: Statista
  5. Volume Comparison: Hermes vs. Russian Post
  6. Hermes NexTec – e-commerce projects development for clients: platform, logistics, payments, digital marketing, client support services, etc. • Hermes NexTec countries of operation: the EU, USA, China, Brazil, Russia. – Launching e-commerce projects for global brands in the Russian Internet. • The unique e-commerce experience of Otto Group & Hermes.
  7. Cross-Border E-Commerce in Russia
  8. Russia’s E-Commerce Market Volume (2012)
  9. Cross-Border E-Commerce Data Sources • Customer surveys • State institutions • Market players • Delivery companies • Experts
  10. Cross-Border E-Commerce Facts Mismatch orders per year orders per day orders per day of orders per year of orders per day parcels per year of orders per day Source: companies ‘ data, Russian Post, Federal Customs Service cross-border e-commerce market volume
  11. Data Mismatch Reasons • Mixture of B2C and B2B cross-border e-commerce markets • Joint purchases • Mail forwarding companies consolidate 5-10 orders in 1 parcel • Russian Post’s cross-border delivery market share steadily decreases, it means the less centralized statistics
  12. Growth Dynamics Experts forecast 30-50% of the cross-border B2C delivery market growth (in num. of parcels). China-Russia direction growth rate is expected to reach 100%. According to the financial projection the crossborder e-commerce market might be up by 6080% in 2013. At year-end 2012 a share of parcels coming in Russia from China in the total amount has risen from 8 up to 17% (Russian Post’s Data).
  13. Russia’s Regional Cross-Border E-Commerce Particularities
  14. Joint Purchases(JP) • • • 750 000 search queries about JP per month Internet interest in JP has risen 2.5 times within 2 years Typical cross-border JP in Russia: - A dozen of purchasers is united in one order by a private facilitator - Parcel weight – 15-20 kg - Delivery cost - $10-15 per 1kg - Dispatching point – China Source: Hermes NexTec, Yandex
  15. Cross-Border Showrooming Showrooming is still a phenomenon of big cities. The cross-border showrooming is especially popular for apparel & footwear, personal electronics. The product line stretching in offline retail ironically provokes showrooming. Client services and marketing to some part might help the offline retail.
  16. Cross-Border Purchases Re-Sale • • • • More than 100 000 private classified ads aiming to resell cross-border purchases appear in the Russian Internet monthly. The most popular reason for reselling is «It doesn’t fit». It’s easier to resell than to return or to change. Sometimes it’s a kind of business.
  17. Audience Socio-Demographic Characteristics & Customer Opinion
  18. Age of Cross-Border Purchasers • A considerable part of the cross-border audience – 25-34 yo. Source: Hermes NexTec Russia, websites statistics
  19. Gender of Cross-Border Purchasers Source: Hermes NexTec Russia, websites statistics
  20. Cross-Border Purchasers Opinion (about China’s e-shops) Source: Hermes NexTec Russia
  21. Cross-Border Purchases Opinion (about US’s and EU’s e-shops) Source: Hermes NexTec Russia
  22. Global Cross-Border E-commerce
  23. Cross-Border B2C E-Commerce 2013 World facts (2013): B2C e-commerce ≈ $1 298 bln B2C cross-border e-commerce ≈ $209 bln One expects the cross-border B2C ecommerce to triple by 2018. China will provide the greatest contribution in a growth rate. Source: eMarketer, Nielsen, Hermes NexTec Russia
  24. Most Popular Cross-Border B2C Products
  25. Leading Cross-Border B2C E-Commerce Markets Source: Hermes NexTec Russia, eMarketer, Nielsen, PayPal
  26. Country Cases
  27. China • • There are 18 mln of cross-border purchasers in China. The Chinese shoppers prefer to buy goods via the Internet in the US (84%), Hong Kong (58%), Japan (52%), the UK (43%), Australia (39%). • • The cross-border B2C e-commerce export is equal to $ 18.2 bln. 95% of cross-border e-commerce export qualify as B2B ($376 bln).
  28. China’s Cross-border E-commerce Inspiration • • • • China sees the huge development opportunities in the cross-border B2C e-commerce. Since 2012 China pursues an active policy of the cross-border retail stimulation. 5 industrial estates specialized in the cross-border ecommerce are already founded. A simplified procedure for the cross-border retail payments is also adopted.
  29. Canada • • • • 30% of the retail e-commerce account for cross-border. This share is expected to rise even further. 68% Canadian shoppers buy goods via the Internet from abroad. Prices in Canada are on average 30-40% higher. The cross-border retail skewness costs Canada $20 bln yearly, thereby the Canadian treasury receives $8-10 bln taxes less.
  30. The EU • • • • • • • In 2013 the cross-border online retail sales are expected to reach $47 bln. It amounts to 11% of total B2C e-commerce volume. 38% year-on-year growth rate. 1/2 European purchasers buy online. 1/3 online shoppers are the cross-border e-commerce market participants. 60% of cross-border order attempts within the bounds of the EU are not successful due to technical and legal reasons. Still there is no integrated e-commerce space in the EU. The European Commission has developed and finally approved The Common European Sales Law (CESL) being a uniform set of EU-wide rules for cross-border sales (September, 2013).
  31. Conclusions: Cross-Border E-Commerce Opportunities & Threats
  32. Cross-Border B2C E-Commerce for States • Price spread means cross-border ecommerce export growth (China) • Price spread means cross-border ecommerce import growth (Canada) • Economic benefits (China) • Economic losses (Canada) • Tax benefits (China) • Tax losses (Canada) • Legal regulation • Customs regulation • Infrastructure development
  33. Cross-Border B2C E-Commerce for Shoppers • Price reduction • Legal insecurity • Product mix extension • Customs duties & restrictions • Quality assurance • Red-tapery (delivery, return, exchange) • Service improvement • Quality fall-off
  34. Cross-Border B2C E-Commerce for Companies • New markets • Market share decline • Competitiveness growth • Competition growth • Margin growth • Margin decline • Lobbyism
  35. What Should the Russian Companies Do? • One shouldn’t be afraid of the cross-border ecommerce. It is essential to avoid threats and exploit opportunities. • The Russian companies can and should come into external markets, the cross-border ecommerce provides exiting opportunities for that. • One might produce consumer goods anywhere – in China or in Russia (as international companies do) and to come into the external markets with the Russian brands. • The Russian brands have a great potential in many countries. All one needs to do is to set up the process.
  36. Thank you! Contacts: Internet Marketing Manager Oleg Zhukov Oleg.Zhukov@hermes-europe.de Phone: +7 (495) 775-86-87 ext.1176

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