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Russiane-commerce trends 2017
FLYING LYNX Oy
Provides sales channels for international companies
Russiane-commerce |Numbers
• Russianpopulation 143,7million
• Internet-penetration59%
• Totalamountofonlineshoppingin 2016:16,3billion USD
• Russiannationale-commerce 12billion USD
• Cross-bordere-commerce4,3billion USD
• Over30milliononlineshoppers
• 195million ordersannually
• Averageprice foranorderappr.65USD
• Littlemorethan 40%ofordersweremadebymobiledevices
KEYRUSSIANINTERNETTRENDS
Internetpenetration|Regional distribution
http://www.ewdn.com/e-commerce/insights.pdf
Internetbehaviour |Usergroups
http://www.ewdn.com/e-commerce/insights.pdf
Internetbehaviour|Purchase motivations
Internetbehaviour|Majortrends
• Theorganic trafficofthe onlineshopsisclearlythe major channelfor
the purchasingcustomers
• Theuseofmobiledevicesisincreasing.Mostlyanonlinepurchaseis
madeonacomputer,afterfirstvisitingtheshoponamobiledevice
• Discountsandcompetitivepricearethemostsignificantfactors
promotingsales
• Generatingtrusttowardstheonlineshop,authenticityoftheproduct,
paymentmethodsanddeliveriesareveryimportant
RUSSIANONLINEMARKETS
E-commerce inRussia|Situation
• Despite the economic situation the online sales in Russia is increasing.
Growth 2015-2016 14% (USD)
• Reasons for growth:
•
•
•
•
The prices have gone up in ground floor shops
Weakened supply in ground floor shops
Generalisation of the Internet use and improvement of the internet penetration
Development of services (payment, deliveries)
• Market has been dominated by Russian online shops, no specific
market leader. The biggest Russian online shops are Ozon,
Wildberries, Ulmart and KupiVIP
Russianeconomy |Purchasing power ofruble
andprice ofoil
- ThepurchasebehaviouroftheRussian
consumers haschangedduetothepoor
economicsituationofRussiaandweakexchange
rateofruble
- Consumption,alsoone-commerce,isfocused
moreonproductsthatareneededineveryday
lives
- Russians alsotravellessabroadandspend
morefundsonactivitiesinhomeland
Foreign onlineshops inRussia |Situation
• Marketshareofforeign onlineshopsinRussiais 36%oftotalsales
• Growthofforeigntrade in2015-2016was26%(USD)
• Chineseonlineshopsdominatethe market
• Chineseshareof cross-bordersalesin2016was80%
• SalesoftheChineseonlineshopsisgrowing strongly
• SecondplaceisobtainedbyAmericanonlineshops
• Europeanshaveclearlyamarginalposition.Themarketsharehas
decreasedsince2014duetotheweakenedruble
Russiane-commerce market
http://www.ewdn.com/e-commerce/insights.pdf
Consumption behaviour|Most popular product groups by seller country
PAYMENTANDLOGISTICS
Payment methods|Distribution
Payment |Russianspecial features
• Nearly 70% of online shopping is paid by ”cash-on-delivery”
• Electric prepayment is most common in cross-border sales
• Inactive payment methods are the essential barrier for sales
• Problem is the Russian banks' rate agreements outside Russia
• Solution is using Russian payment method partners on e-commerce
Deliveries|Refunds
• Delivery costs are a major part in the trade price for the consumer
• Russian national deliveries are cheap (free), fast and reliable
• Chinese offer cost-free deliveries with long delivery times
• Delivery costs are based on volume
• When regarding refunds, Russian Consumer Protection Act is favouring
online trader's "side"
• No automatic right for returns
• Returns are often with consumers own expense
• The products that are unfit are often sold to friends or on local C2C platforms
Cross-border e-commerce |Deliveries
SUMMARY
Russiane-commerce |Challenges andstrengths
forFinland
• Market, competition
• Language: specifications and products presented in Russian
• Trust: 40 000 online shops on the market, only a part of them are operational
• Finns have a good reputation but we are "out of sight"
• Marketing
• Finns should take marketing seriously
• Visibility: building visibility in many channels
• Marketing method: reaching target groups
• Sales processes
• Localised payment methods available, making payments is easy to build
• Finland has the best infrastructure, cooperation network and location
• Customer service in Finland is easy to organise, we have plenty of know-how in
Russia
AREYOUINTERESTEDINRUSSIAN
E-COMMERCE?
CONTACTUS!
MarkoKangaskolkka,CEOFlying LynxOy
Email:[email protected]
Tel:+358 405317595