Russia e commerce update june 2013

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Russia e commerce update june 2013

  1. 1. Seeking to grow youre-commerce business?Look at RussiaJune 2013www.intersticeconsulting.com/russia/
  2. 2. Russia is by far the largestcountry in the world• Population of 142MM, 80% urban, 9 time zones, 83 regions (states)• Should surpass Germany this year to become the largest consumer market in Europe (alreadythe largest Internet market)• "Millioniki" -- 13 cities with populations > 1MM; 49 second-tier cities with populations > 300K
  3. 3. Moscows economy is boomingMoscow is not an "emerging"market in economic termsSource: Brookings Institution [http://www.brookings.edu/research/interactives/global-metro-monitor-3]
  4. 4. The foreign business invasion isunderway
  5. 5. Top names in luxury and fastfashion are expanding in Russia•Tiffanys new flagship store will open in Moscow’s GUMdepartment store in Q1 2014, 2-storey 4000 sq ft•Louis Vuitton, Chanel, Prada, Jimmy Choo, Hermes,Burberry Berlutti, Kiton, Brioni, Christian Louboutin,etc.•Zara, H&M, Uniqlo, GAP, Victorias Secret•Cosmopolitans Russian print edition has its largestcirculation outside the USA
  6. 6. Internet and online marketing inRussia ("RU-NET") is quite distinct
  7. 7. E-commerce in Russia =PHENOMENAL GROWTHTotal e-commerce market size in 2012 was about $12BN BUT represents less than 2% of total retail sales and is growing much morerapidly than any North American or European markets (lower overall penetration, much greater growth potential)• eBay global emerging markets focus -- the effort is “incredibly well-funded” and plans to focus first on Russia; eBay had over$400MM in cross-border sales to Russia last year, with fashion being one of their core segments• Other international players with local operations: Groupon, Airbnb, Kayak, Booking.com, Google, Rocket Internet, Otto
  8. 8. Fashion is the most dynamicsector in Russian e-commerce•Major segments are electronics andfashion•Fashion goods are sold 80% COD•Issues with payments, logistics, imports•Cross-border : individual importexemption EUR1000 / month
  9. 9. Local fashion e-commerceplayers are well funded
  10. 10. For more news and analysisabout Russian e-commercehttp://intersticeconsulting.com/russia/e-commerce/

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