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

9. Local fashion e-commerce
players are well funded

10. For more news and analysis
about Russian e-commerce
http://intersticeconsulting.com/russia/e-commerce/