This document summarizes e-commerce trends in Russia. It shows that online sales in Russia have grown substantially since 2001 and are projected to continue strong growth through 2020. The largest percentages of online purchases are for books, clothing, tickets, and electronics. Social networks like VKontakte and Odnoklassniki provide new marketing opportunities for companies. Scandinavian countries promote tourism to Russia through websites and social media presences.

1. E-commerce market,
Russian hot spot
Daria Ivanova, senior consultant, Finpro
St. Petersburg
April, 2012

2. Internet usage in Russia
160
140 Monthly usage
Weekly usage
120 Daily usage
100
80
60
40
20
0
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3. Online sales development
Picture: Online sales development in Russia 2001 – 2013, billion RUR, estimate
2010 2020
Germany 1000 billion EUR
32 80 billion EUR
Russia 5,8 billion EUR 60 billion EUR
900
800
700
600
500
400
300
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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4. Geographical distribution of Internet-users
TOTAL 52,9 mln users
Central Region 28% & 15,2 ml.
Volga region, 19% and 9,9 ml.
South region 14% and 7,7 ml.
Siberia 13% and 6,8 ml.
North-West, 12% & 6,5 ml.
Urals 9% and 4,5 ml.
Far East 5% and 2,3 ml.
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5. 29/04/2012
0%
5%
15 %
20 %
25 %
30 %
35 %
10 %
books
29 %
23 %
wear, footwear 18 %
tickets (flights, trains)
17 %
electronics
© Finpro
home appliances
15 %
15 %
gifts
13 %
software
12 %
audio, video discs
Product groups / % of online deals
children goods
10 %
7%
foods
5

6. Purchase volumes / per single purchase on average
Product groups Share of end Average Average spending
clients spending , RUR , EUR*
Traditional books 28,90% 1 600 40
Clothes and footwear 23,20% 4 400 110
Travel tickets 18,40% 11 700 292,5
Portable electronics (mp3 players, phones, cameras etc.) 16,80% 8 200 205
Small home technique 15,40% 4 800 120
Presents 14,80% 2 200 55
Software 12,80% 3 000 75
Audio / Video on CD / DVD 12,30% 2 500 62,5
Computers & Office technique 9,90% 10 400 260
Drugs & Lances 8,80% 2 600 65
Electronic books 8,00% 2 800 70
Concert & Theater tickets 7,80% 2 700 67,5
Large home techniques 7,00% 17 300 432,5
Sport goods 6,00% 4 700 117,5
PC games 5,70% 1 600 40
Home video & audio 5,60% 15 700 392,5
Audio & Video content 5,40% 2 100 52,5
Average exchange rate for 2010: 1 EUR = 40 RUR
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7. Finnish Internet-shop opened in Russia
www.dermosil.ru www.dermoshop.fi
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8. Social networks In Russia
• Vkontakte.ru – over 100 000 000 accounts;
• Odnoklassniki.ru – over 45 000 000 accounts;
• MySpace – over 40 000 000 accounts;
• Facebook (facebook.com) – over 30 00 000 Russian accounts (in
total 750 million accounts);
• Live Journal – 2 443 667 Russian accounts
• Twitter (twitter.com) – over 350 000 Russian accounts (in total
over 200 million)
New opportunities for
Marketing & Sales
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9. VKONTAKTE
106 941 400 accounts on 26.10.2011
Marketing opportunities
•Banner advertising which
can be targeted precisely to
certain target groups
•Brand communities • VKontakte is the largest social network in Runet, the third popular
site in the Ukraine and Kazakhstan, the fourth in Belarus. The
•Flash applications for sales website initially positioned itself as a social network of students and
graduates of Russian higher educational institutions, later it started to
and advertising call itself “modern and fast method of communication”.
• In February 2011 daily audience of social network exceeded 23
•Social media marketing million people.
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10. Marketing in social networks
Different companies have different opinion
on the importance of social media marketing
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11. Future trends (world)
Easy & quick shopping More options to increase reliability
Easy delivery & payments Small offline sellers move to Internet
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12. E-commerce in travel
segment

13. Why e-commerce in travel
50 % 45 % 8.0
45 % 6.9
7.0
40 %
35 % 6.0
30 % 5.0
25 % 4.0 3.2
20 %
3.0
15 %
7% 2.0
10 %
5% 1.0
0% 0.0
USA and UK Russia 2011 2015
Share of on-line market in travel E-commerce travel in Russia, bln euro
• According to the Amargo, rate of growth of on-line travel are 35-40%
• Share of self-organized tour to Finland has reached 45-55% in St.
Petersburg
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14. St. Petersburg citizen
1
3 3
7
6 Never been in Finland
Less than once per year
Once per year
2-3 times per year
13
4-5 times per year
Almost once a month
67 Several times per month
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15. Information sources
70
60
- There is not surprise that Internet
is the most popular source of
50 information for target audience
(the research was made among
40
Internet users)
- However “words of mouth”
remains the essential source of
30 information in Russia. Opinions of
friends and relatives are always
20
important for Russian customers
10
0
May 2009, % November 2009, % May 2010, 5
Internet Words of mouth
Tour companies' reccomendations Guides
Magazines and journals TV-programs
Date 15 © Finpro

16. Main players activities: countries
 All Scandinavian countries have their WEB presents in Russian languages:
 Denmark http://www.visitdenmark.ru
 Sweden http://www.visitsweden.com/shveciya/
 Norway http://www.visitnorway.com/ru
 Content of these sites are very similar:
 country, its culture, events (festivals, celebration etc),
 hotel choice and booking, transportation,
 regional overview of the country, place to go
(museums, restaurants, clubs), nature,
 video materials about country.
 However, there are certain differences. For example Norway promotes country
via followed digital media:
 http://www.facebook.com/visitnorway.ru about 500 users in the club
 http://twitter.com/visitnorway_ru about 100 users in the club
 http://blogs.mail.ru/mail/visitnorway/
 http://vkontakte.ru/club14063861 about 350 users in the club
 Sweden has its own community: www.communityofsweden.com
 Denmark has its own community as well: www.okeandruzey.ru/Denmark+1.html
Date 16 © Finpro

17. http://blogs.mail.ru/mail/visitnorway
Role in travelling Information about country, travel tips, place to go. Movies
and articles about country
Key Topics Stories about Norway
Popularity Friends:378
Readers:458
Subscribers:517
Facilitator of the site Created in 15.06.2009 by
Norway tourist board
Advertising www.visitnorway.ru promotion
Activities to increase stickiness Competitions for users
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18. http://twitter.com/visitnorway_ru
Role in Country’s video. Materials about country
travelling
Key Topics Video, pictures, stories about countries
Popularity 102 of users in the group
Facilitator of Norway tourist board
the site
Advertising www.visitnorway.ru promotion
Date 18 © Finpro

19. http://www.facebook.com/visitnorway.ru
Role in Official tourist portal about Norway
travelling
Key Topics Link to video, pictures, stories about courtiers, mini-forum
Popularity 500 users in the group
Profile of the No data. Facilitator of the site Norway tourist board
users
Advertising www.visitnorway.ru promotion
Date 19 © Finpro

20. Example of social media sales process
Creation of group/ topic devoting
to “place, activity”
Basis information upload, link to the
participants web-pages
Initiate of the discussion, feedback
collection
Question in the framework of basis
information – Finpro answer
Question outside of F.A.Q. – Finpro will
contact company representative and
answer later
Follow up workshop will be conducted once
in 3-4 months
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21. • Thank you for your attention
• Daria.ivanova@finpro.fi
• +7 921 405 88 03
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