Europe’s largest Internet market• More than 60 million users in Russia*(+ 20 million Russian speaking users outside Russia)• Just half of the population connected: Still hugepotential ahead• Further growth fuelled essentially by the regions(penetration rate as low as 30% in certain areas)* Unique users monthly as of Spring 2012
18 million Key figures 2011 Russians shopped online in a 6-month period, or 14% of the population 18+ (or 7 million monthly) Total 89 of whichmarket $10.5bn was spent on size: (310bn rub.) $7.8bn physical million (230bn rub.) goods… …while cross–border orders of sales reached physical goods $ 700 m were made during the yearOnline retail (or 245,000 per day) accounted of the total Russian 2% of whichfor less than retail market… 45 million …but grew by at least in one year +25% (or 125,000 per day) SOURCES: came from the regions
Key trends 2012 The market is growing by at Logistics and delivery are still least 25% each year; some bottlenecks for e-commerce in1 major online retailers are 5 the regions; major retailers even seeing their sales overcome this by building their double or triple. own capacities. The regions still lag behind the Cash-on-delivery is the rule for physical goods and will remain2 capitals, but pioneering retailers now generate more 6 so for a long time, but merchants than half of their sales from the find ways to cope with the regions related issues. The lack of qualified HR appears Major offline retailers are now to be one of the most painful3 coming to e-commerce while 7 issues, hampering the entire online-offline concepts multiply. Internet industry. Cross-border sales have grown Investment activity is growing considerably over the last few fast, but exits are still years, but foreign e-merchants4 exceptions and are likely to 8 still have to pull down two major remain so at least in the short walls: customs clearance and term. delivery across Russia.
Study contents"E-Commerce in Russia" hasinstantly become theinternational reference inresearch in this industry.The study (316 pages, 10 chapters) includes:• Comprehensive and precise market data with midand long term trend analysis• Deep analysis and insights on the regional e-commerce scene• Full coverage of operational aspects, frommarketing to payment, fulfillment, HR and legalaspects, based on interviews with 80 industry playersand experts• An exclusive ranking of the top 40 Russian e-commerce properties• An analysis of investment related issues with acomplete review of publicly disclosed deals over thelast 2 years
Study contents• 10 chapters• 316 pages• 98 illustrations• 80 interviews• Version 1 issuedin July 2012
Participating expertsThe study is published byEast-West Digital News inpartnership with DataInsight and Moscow’sHigher School of The E-commerce Program of theEconomics. University of Telecommunications and Informatics of the Volga Region (Samara)Also participating are expertsfrom leading Russian andinternational consultancies,universities, media andspecialized providers