Why UK online retailers should be looking to Russia

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Russia is a growing internet market that is set to be worth £20bn by 2014 but is still years behind the UK. Britain's online retailers could and should take advantage of this...

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Why UK online retailers should be looking to Russia

  1. 1. Ecommerce and search engines in Russia © Search Laboratory Ltd 2013. All rights reserved. Leeds Tel: +44 113 350 4362 London Tel: +44 207 147 9980
  2. 2. Agenda Who we are Ecommerce in Russia Yandex Optimising for Yandex The challenges Ecommerce versus high street @searchlabs
  3. 3. Who is Search Laboratory? Global search marketing experts 150+ clients, 18 countries working in 35 Languages “Science” NOT “Art” – ROI & profit focused Ethical, transparent and sustainable approach Smart software & smarter people 150 staff Multi-channel & ecommerce specialists
  4. 4. Why Russia? @searchlabs
  5. 5. Russia: A country online 57.81m internet users 80m by 2014 71% of the population online 23% access the web via a mobile device Ecommerce not restricted to the big cities @searchlabs
  6. 6. Russia: A country buying online More than ¼ million ecommerce orders per day Ecommerce market to be worth £19.3bn in 2014, rising to £$23.2bn in 2015 Foreign online purchases totalled $1bn in 2011 6% of internet users have already bought from foreign ecommerce sites 10 purchases per year Just the tip of the iceberg… @searchlabs
  7. 7. Who‟s buying online and what? Female 30 to 39 years old Average age of online consumer is 44 Households with incomes >RUB 30K per month more likely to buy online Electronics and books are the most popular Food is not a big ecommerce player Average purchase RUB 3,200 Sources: Morgan Stanley @searchlabs
  8. 8. Not just Google… @searchlabs
  9. 9. @searchlabs
  10. 10. 4th most popular search engine in the world 95m monthly users (+60m in Russia) 4.84bn searches per month Most viewed entity in Russia 45% overall online advertising share 75% market share by 2020 @searchlabs 62% 26% 11% Yandex Google Mail.ru Rambler Bing
  11. 11. 87% of online consumers research purchases on search engines +80% compare prices Yandex.Market is the starting point for 40% of commercial searches Yandex.Market set to contribute over 10% of entire ecommerce sales in 2013 @searchlabs
  12. 12. Mail, Maps, Photos, Videos, Placard, Catalogue, Events, Work, Metrix & Taxi Ranks websites using Citation Index Indexes foreign websites for searches typed in English Ethically-focused search engine Warns users when a website contains doorways Doesn‟t allow pop-ups or floating ads Protects users from viruses and phishing scams @searchlabs
  13. 13. paid advertising @searchlabs
  14. 14. @searchlabs
  15. 15. Direct.Yandex is the search engine‟s advertising platform Straightforward natural ad text: “Bike sale. Catalogue of bikes and accessories” paid advertising @searchlabs
  16. 16. Optimising for Yandex @searchlabs
  17. 17. Localising Your Website Products Business Logic Website SEO PPC Display Affiliates Email Generate traffic @searchlabs
  18. 18. Don‟t use automated translation services @searchlabs
  19. 19. @searchlabs
  20. 20. How Russians search In Russian Brands („Sony‟ or „Komatsu‟) generally searched in their original language Search plays a part in off-line purchases @searchlabs
  21. 21. Cultural Nuances @searchlabs
  22. 22. Localisation and SEO On-going living process – NOT a one off exercise
  23. 23. Yandex likes… Good grammar and well-written copy Russian domains Relevant links Natural content @searchlabs
  24. 24. Yandex dislikes… Over-optimised websites Paid links Spam Pop-up windows „Artificial‟ attempts to optimise @searchlabs
  25. 25. The challenges @searchlabs
  26. 26. Trust See and touch Product quality (fakes) Products never sent Used items, when advertised as new Returns and exchanges Generations @searchlabs
  27. 27. Delivery @searchlabs Courier service a popular alternative to the national mail National mail have a reputation for being slow
  28. 28. Payment Cash-on-delivery is the main method of paying Credit / debit cards mistrusted Money.Yandex or WebMoney Data @searchlabs
  29. 29. Who‟s doing ecommerce well Ozon „Russian Amazon‟ Potential sales of $1bn by 2014 2,100 pick-up points in 130 cities 80% cash on delivery Amazon and Ebay @searchlabs
  30. 30. How Russians use the internet @searchlabs
  31. 31. Social 34.5m visit at least one social platform monthly Average of 10.4 hours a month spent on social media VK.com is the most popular Facebook increasingly popular Twitter linked up with Yandex Those succeeding in ecommerce have strong social presence @searchlabs
  32. 32. @searchlabs
  33. 33. Ecommerce versus the high-street Russian ecommerce set to grow to ~ $36bn by 2015 Just 4.5% of total offline retail sales… could rise to 7% by 2020 In the UK this is already around 10%! @searchlabs
  34. 34. Summary Russia is an internet giant that‟s waking up Yandex is the key to selling online in Russia To sell online in Russia, you must understand how Russian‟s search Payment and trust are two major challenges to Russian ecommerce Russian ecommerce is ~ 10 years behind the UK @searchlabs
  35. 35. Get expert help - Whitepaper @searchlabs
  36. 36. Whitepaper @searchlabs
  37. 37. Contact Details

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