why uk online retailers should be looking to russia
DESCRIPTION
Russia is a growing internet market that is set to be worth £20bn by 2014 but is still years behind the UK. Britain's online retailers could and should take advantage of this...TRANSCRIPT
Ecommerce and search engines in Russia
© Search Laboratory Ltd 2013. All rights reserved.
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Agenda
Who we are
Ecommerce in Russia
Yandex
Optimising for Yandex
The challenges
Ecommerce versus high street
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Who is Search Laboratory?
Global search marketing experts
150+ clients, 18 countries working in 35 Languages
“Science” NOT “Art” – ROI & profit focused
Ethical, transparent and sustainable approach
Smart software & smarter people
150 staff
Multi-channel & ecommerce specialists
Why Russia?
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Russia: A country online
57.81m internet users
80m by 2014
71% of the population online
23% access the web via a mobile device
Ecommerce not restricted to the big cities
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Russia: A country buying online
More than ¼ million ecommerce orders per day
Ecommerce market to be worth £19.3bn in 2014, rising to £$23.2bn in 2015
Foreign online purchases totalled $1bn in 2011
6% of internet users have already bought from foreign ecommerce sites
10 purchases per year
Just the tip of the iceberg…
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Who’s buying online and what?
Female 30 to 39 years oldAverage age of online consumer is 44 Households with incomes >RUB 30K per month more likely to buy onlineElectronics and books are the most popularFood is not a big ecommerce player Average purchase RUB 3,200
Sources: Morgan Stanley@searchlabs
Not just Google…
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@searchlabs
4th most popular search engine in the world
95m monthly users (+60m in Russia)
4.84bn searches per month
Most viewed entity in Russia
45% overall online advertising share
75% market share by 2020
@searchlabs
62%
26%
11%
YandexGoogleMail.ruRamblerBing
87% of online consumers research purchases on search engines
+80% compare prices
Yandex.Market is the starting point for 40% of commercial searches
Yandex.Market set to contribute over 10% of entire ecommerce sales in 2013
@searchlabs
Mail, Maps, Photos, Videos, Placard, Catalogue, Events, Work, Metrix & Taxi
Ranks websites using Citation Index
Indexes foreign websites for searches typed in English
Ethically-focused search engine
Warns users when a website contains doorways
Doesn’t allow pop-ups or floating ads
Protects users from viruses and phishing scams
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paid advertising
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@searchlabs
Direct.Yandex is the search engine’s advertising platform
Straightforward natural ad text: “Bike sale. Catalogue of bikes and accessories”
paid advertising
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Optimising for Yandex
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Localising Your Website
Products Business
Logic
Website
SEO
PPC
Display
Affiliates
Generate traffic
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Don’t use automated translation services
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How Russians search
In Russian
Brands (‘Sony’ or ‘Komatsu’) generally searched in their original language
Search plays a part in off-line purchases
@searchlabs
Cultural Nuances
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Localisation and SEO
On-going living process – NOT a one off exercise
Yandex likes…
Good grammar and well-written copy
Russian domains
Relevant links
Natural content
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Yandex dislikes…
Over-optimised websites
Paid links
Spam
Pop-up windows
‘Artificial’ attempts to optimise
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The challenges
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Trust
See and touch
Product quality (fakes)
Products never sent
Used items, when advertised as new
Returns and exchanges
Generations
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Delivery
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Courier service a popular alternative to the national mail
National mail have a reputation for being slow
Payment
Cash-on-delivery is the main method of paying
Credit / debit cards mistrusted
Money.Yandex or WebMoney
Data
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Who’s doing ecommerce well
Ozon ‘Russian Amazon’
Potential sales of $1bn by 2014
2,100 pick-up points in 130 cities
80% cash on delivery
Amazon and Ebay
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How Russians use the internet
@searchlabs
Social
34.5m visit at least one social platform monthlyAverage of 10.4 hours a month spent on social mediaVK.com is the most popularFacebook increasingly popularTwitter linked up with YandexThose succeeding in ecommerce have strong social presence
@searchlabs
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Ecommerce versus the high-street
Russian ecommerce set to grow to ~ $36bn by 2015
Just 4.5% of total offline retail sales… could rise to 7% by 2020
In the UK this is already around 10%!
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Summary
Russia is an internet giant that’s waking up
Yandex is the key to selling online in Russia
To sell online in Russia, you must understand how Russian’s search
Payment and trust are two major challenges to Russian ecommerce
Russian ecommerce is ~ 10 years behind the UK
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Get expert help - Whitepaper
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Contact Details