e-commerce market in russia 2014

E-Commerce Market in Russia 2014

June 2014 updated

Август 2014

September 2014

Hermes Group Facts & Figures

Интернет-магазин уже есть, и было бы неплохо:

— Turnover of the Hermes Group в 2012

Hermes – is the only global service provider positioned

closed to customers and provides all services along the

supply chain

$2,64 bln

— Suppliers joined Hermes-OTTO International

supply chain and it keeps growing 2000

— Employees worldwide 11,1

thous.

— For Hermes Fulfilment due the

world’s largest automatic returns

warehouse in Haldensleben

The VDI

Innovation

Award

2013

— Parcels per year are processed by

Hermes in Europe

452mln

Sourcing &

Product

Transport

Logistics

Full Service

E-Commerce

Distribution

HNT’s Clients

Интернет-магазин уже есть, и было бы неплохо:

Hermes NexTec has been launching and managing e-

commerce projects for clients all across the globe since

2010.

USA

Brazil

EU

China

Russia

Content

E-Commerce Market

Trends & Perspectives

E-Commerce Players

E- Commerce Audience

Size ● Volume ● Dynamics ● Structure ● Share

Volume ● Dynamics ● Potential ● Geography ● Spendings ● Payments

Number ● Leaders ● Dynamics ● Concentration ● Share

Market ● Audience ● Players ● Trends & Perspectives

Russian E-Commerce Market Overall

Russia’s E-Commerce Market Size (2013)

Total Russian e-commerce market volume is $ 19 bln including:

$ 11 bln $ 5 bln

$ 3 bln

Source: E-Commerce Europe, Data Insight, Hermes NexTec Russia estimations

Russia's E-Commerce Domestic Market Growth

Total online sales + 28%

Physical goods + 25%

Virtual goods & services + 36%

Source: EWDN, Data Insight, Hermes Nextec Russia estimations

Russia’s E-Commerce Market Structure

Physical goods only %, 2013

Domestic appliances & electronics

Apparel, footwear,

accessories

Car parts

Household goods, furniture, DIY

Products for kids

Cosmetics & Perfume Other

Source: EWDN, FOM, Consumer Barometer, Hermes Nextec Russia estimations

Share of E-Commerce in Total Retail Sales

Source: Centre for Retail Research, Hermes NexTec Russia estimations

E-Commerce Audience in Russia

145 600 000 people live in Russia

66 000 000 of them use the Internet daily

Source: FOM, TNS, government statistics

Internet Audience & Internet Penetration

Source: E-Commerce Europe, Centre for Retail Research, TNS, FOM

Army of Online Shoppers

25 000 000 people make purchases online in Russia

or 20% of population 18 yo+

Source: FOM, Data Insight, government statistics, Hermes NexTec Russia estimation

Internet Users Shopping Online

Source: E-Commerce Europe, Centre for Retail Research, FOM, Hermes NexTec Russia estimations

E-Shoppers Geography by Regions

2,9

Southern R. (12%)

8,2

Central R. (33%)

5,0

Volga R.(20%)

3,1

Ural R. (9%)

2,3

North-Western R. (12%)

2,8

Siberia R. (11%)

0,7

Far East R. (3%)

Moscow – 5,4 (22%) Millions of people, 2013

Source: TNS, FOM, EWDN, Hermes NexTec Russia estimations

Average Annual Online Spend per E-Shopper

Source: E-Commerce Europe, Centre for Retail Research, FOM, VISA, Data Insight, Hermes NexTec Russia estimations

AOV of Online Purchase & Number of Purchases per Year

Source: E-Commerce Europe, Centre for Retail Research, FOM, VISA, Data Insight, Hermes NexTec Russia estimations

Payment Methods of Online Shopping in Russia

Cash Credit cards

Electronic money

Other

Source: FОМ, VISA, Hermes NexTec Russia estimations

E-Commerce Players in Russia

Number of E-Shops in Russia

There are about

50 000 e-shops

in Russia (2013) +20 % from 2012

95 % of them put all together have 10% of Russian

e-commerce market

Source: InSales, Data Insight, Hermes NexTec Russia estimations

TOP-10 Online Retailers in Russia

Physical goods only

Millions of $, 2013

Source: Kommersant, Hermes NexTec Russia estimations

The Leader’s Share in National E-Commerce Market

The market leader vs. the rest: Ulmart’s 7% of the market

Source: Internet Retailer, E-Commerce Europe, Centre for Retail Research, Hermes NexTec Russia estimations

E-Commerce Trends & Perspectives in Russia

E-Commerce Market Volume Perspectives

Domestic e-commerce market in Russia will double in 3 years

Growth rates will remain over 20% during next 7 years at least

Outstripping growth rate of cross-border online sales (+60% YoY)

Offline Retail Sales Go Online

The share of online sales in b2c retail market will reach 20% at least

Still it’s only 2,5% in Russia

Key E-Commerce Drivers in Russia

New Internet audience – new purchasers

Deeper online – new style of life. A custom to buy online

Convenient. Better price. Better choice

Online methods of payment. Easier to buy

No wide offline retail choice for many small towns in regions

E-Commerce market Structure Changes

Domestic appliances & Electronics ↓, other ↑

Other

Sports

Groceries

Gifts

Luxury

New substantial segments: sports goods, groceries, gifts, luxury

#1 European Internet Audience

Russian Internet Audience will be #1 in Europe in 2 years

with high potential of further growth

New Purchasers: Growth Dynamics

Every year the army of Internet shoppers in Russia

becomes 25-30% larger

Online Spend Trend

Average annual online spend per shopper in Russia is quite high

with 15% rate of growth

AOV of Internet purchase doesn’t grow though

Intensity of online purchasing grows up

Methods of Payments Evolution

Several years ago cash was a leader with 85%, now it’s 65%

Not very fast, but bank cards expand their influence

Other methods don’t and won’t play a significant role

Number of E-Shops

The number of e-shops growth rate will decrease

More difficult for new ones to compete –

better price, better conditions, loyalty

Market Consolidation

Market consolidation will continue

Amazon will finally enter the market

Local players are still attractive goals for M&A for

international online retailers

Contacts:

Oleg Zhukov

Head of Marketing

Hermes NexTec Russia

Oleg.Zhukov@hermesworld.com

www.hermesworld.com

Thank you!