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Seeking to grow your
e-commerce business?
Look at Russia
June 2013
www.intersticeconsulting.com/russia/
Russia is by far the largest
country 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 (already
the largest Internet market)
• "Millioniki" -- 13 cities with populations > 1MM; 49 second-tier cities with populations > 300K
Moscow's economy is booming
Moscow is not an "emerging"
market in economic terms
Source: Brookings Institution [http://www.brookings.edu/
research/interactives/global-metro-monitor-3]
The foreign business invasion is
underway
Top names in luxury and fast
fashion are expanding in Russia
•Tiffany's new flagship store will open in Moscow’s GUM
department 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, Victoria's Secret
•Cosmopolitan's Russian print edition has its largest
circulation outside the USA
Internet and online marketing in
Russia ("RU-NET") is quite distinct
E-commerce in Russia =
PHENOMENAL GROWTH
Total e-commerce market size in 2012 was about $12BN BUT represents less than 2% of total retail sales and is growing much more
rapidly 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
Fashion is the most dynamic
sector in Russian e-commerce
•Major segments are electronics and
fashion
•Fashion goods are sold 80% COD
•Issues with payments, logistics, imports
•Cross-border : individual import
exemption EUR1000 / month
Local fashion e-commerce
players are well funded
For more news and analysis
about Russian e-commerce
http://intersticeconsulting.com/russia/e-commerce/

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Russia e commerce update june 2013

  • 1. Seeking to grow your e-commerce business? Look at Russia June 2013 www.intersticeconsulting.com/russia/
  • 2. Russia is by far the largest country 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 (already the largest Internet market) • "Millioniki" -- 13 cities with populations > 1MM; 49 second-tier cities with populations > 300K
  • 3. Moscow's economy is booming Moscow is not an "emerging" market in economic terms Source: Brookings Institution [http://www.brookings.edu/ research/interactives/global-metro-monitor-3]
  • 4. The foreign business invasion is underway
  • 5. Top names in luxury and fast fashion are expanding in Russia •Tiffany's new flagship store will open in Moscow’s GUM department 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, Victoria's Secret •Cosmopolitan's Russian print edition has its largest circulation outside the USA
  • 6. Internet and online marketing in Russia ("RU-NET") is quite distinct
  • 7. E-commerce in Russia = PHENOMENAL GROWTH Total e-commerce market size in 2012 was about $12BN BUT represents less than 2% of total retail sales and is growing much more rapidly 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. Fashion is the most dynamic sector in Russian e-commerce •Major segments are electronics and fashion •Fashion goods are sold 80% COD •Issues with payments, logistics, imports •Cross-border : individual import exemption EUR1000 / month
  • 10. For more news and analysis about Russian e-commerce http://intersticeconsulting.com/russia/e-commerce/