Conquering regions

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Кейс о покорении регионов: проблемы, вызовы и возможности новых рынков

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Conquering regions

  1. 1. Conquering the regions Boris Lepinskikh, CEO E96.ru 2014 June 4, e-Days e-commerce conference
  2. 2. About us: local touch, global ambitions 2014 June 4, e-Days e-commerce conference 2007 - company foundation 2013 - net revenue 4,6 B rubles (+65% Y/Y) 2013 - we operate in 19 regions (delivering in 1003 places with our own logistics) 2013 - raising round А from IQ One Holdings for expansion and business development 2014 - 400 000 SKU (+100% Y/Y) 2013 MAU - 1 MM (+75% Y/Y) 2011 - start conquering regions 2014 - Top-15 most effective online stores (Forbes Russia)
  3. 3. Evolution of regional markets 2014 June 4, e-Days e-commerce conference 2007 2007-2011 2011-2013 Federal competition • Market consolidation, competition goes federal;! • Strengthening players from regions;! • Paradox: extremely strong competition on emerging markets. • Strong regional competition;! • Price competition;! • First M&A;! • Moscow companies starts shipping to regions. • First local startups;! • Offline retail entry e- commerce only for branding;! • High margins. GrowthVacuum
  4. 4. The structure of regional markets 100 000 — 800 000: 23,3 MM / 70% / +13% 100 000: 31,2 MM / 51% / +10% 31,2 MM 51% +10% High level cities
 (Ekaterinburg, Rostov-on-Don, Perm) Emerging cities (1m population)
 (Omsk, Krasnoyarsk, Samara, Saratov) 2014 June 4, e-Days e-commerce conference
  5. 5. 2014 June 4, e-Days e-commerce conference Markets go on growthing at different speeds 
 (infrastructure, broadband penetration, depots & logistics) Distrust consumers; Strong competition in price and service; Problems X-company M.Video Eldorado Less sources of external traffic 
 (High level cities - 75-90%, 
 Emerging cities - not more than 60%); Logistics, logistics, logistics again
 («final mile», pick-up point , outsourcing).
  6. 6. 2014 June 4, e-Days e-commerce conference Market opportunity New users live outside two capitals Source; TheRunet Moscow St.Petersburg Villages Big Cities
 (1MM) 500K-1MM 100K-500K <100K Number of runet users will jump to 70 MM by 2014 = new internet-customers; Engaging traditional buyers to online buyers. New geographic markets;
  7. 7. %$ 0 200 400 600 800 t 2011 2012 2013 2014 2015 2014 June 4, e-Days e-commerce conference Market opportunity Ekaterinburg Krasnoyarsk Tyumen Rate of growth N%-share high level market = 5N%-share
 emerging market X m investment at high level market = Х/2 m investment at emerging 5N%-share at emerging market easy than N%- share at high level market
  8. 8. Boris Lepinskikh, CEO e96 boris@e96.ru slideshare.net/Lepinskikh/ @BorisLepinskikh

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