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Russian vending market


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Russian market on Payment Systems for Vending Machines

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Russian vending market

  1. 1. Payment Systems for Vending Machines Russian Market Potential Viacheslav Makovich,
  2. 2. Russian Vending Trade Market • Retail market: 450 mlrd. Euros • Vending trade in Russia is still undeveloped, it forms 5% of nonstore trade and 0,2% of general retail market. • Top 5 players (Nestle, Uvenco, KommPass, Assorti, Siba Vending) forms more that 1/5 of Russian market. – Nonstore trade: 20 mlrd. Euros – Vending trade: 1 mlrd. Euro 22% 38% 40% Market structure Top 5 companies Middle size companies Small players (less than 15 machines) Sources: MinPromTorg, EVA, National Association of Automated Trade
  3. 3. Vending Market Potential • There are only 80 000 operating vending machines on Russian market, that is much less than in markets of EU and US. • According to NAAT number of operating vending machines Russian market will exceeds 400 000 units Number of inhabitants per 1 70 USA EU Number of operating vending machines 450000 400000 350000 300000 250000 200000 150000 100000 50000 Sources: Euromonitor, National Association of Automated Trade (NAAT) 1800 150 Russia vending machine 0 2013 2020F
  4. 4. Vending Market Structure • More than 80% of operating machines are hot drinks and snacks machines. The share of hot drinks machines are much more than on EU markets, experts predicts growth of snacks segment. • 2/3 of vending machines are in Moscow and St. Petersburg Types of machines Hot drinks vending machines Snacks vending machines Packaged drinks vending machines Others 62% 14% 20% 4% Sources: Euromonitor, Retail&Loyalty Magazine (#2 2013) 75% 25% Geography Moscow & Spb Other cities
  5. 5. Vending Market Size • Annual market size is 9 000 units. • Most of machines are imported. • EU producers are main players on coffee and snacks machines, producers from China – on entertainment machines, Russian producers focus on small segments of vending machines. Market Structure Import from EU 56% Produced in Russia 33% Import from other countries 11% Local Producers: Unicum, Razumnie Machini Import Producers: N&W Global Vending, Saeco, Sources: Discovery Research Group, Import statistics Damian, Bianchi Vending Group, Rheavendos, FAS Intarnational
  6. 6. Overview of Russian Payment Systems Market Necessary factors Current trends Core players Price range •Protocols EXECUTIVE or MDB/ICP •Easy to install and operate (even by person with low qualification) •Ability to give change and large capacity for change •Vandal safety •Cashless payments Sources: study of VM Consult •CoinCo •MEI Group •ICT (Gamemax) •LOTTE •CashCode •Coins systems: 100-180 Euro •Banknotes systems: 300- 400 Euro
  7. 7. Prospects of cashless systems Experts expects growth of demand on cashless payment systems due to the following factors: • Growth of cashless payments volumes • Low payment power of coins in Russia (it’s necessary to have large number of coins to make payment) • Low current volumes comparing with other countries Share of cashless cashless payment systems, % Germany 80 60 40 20 0 0 5 10 15 20 Volume of retail cashless payments in Russia, mlrd. Euro Sources: RBC 2008 2009 2010 2011 2012 Russia
  8. 8. If your company has a principle interest to development on Russian market, please contact us at and we will support you