New version 2015: http://www.slideshare.net/olegzhukov524/ecommerce-market-in-russia-2015 E-commerce market in Russia 2014: facts, figures, international comparison, trends & perspectives

1. E-Commerce Market in Russia 2014
June 2014 updated
Август 2014
September 2014

2. 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

3. 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

4. 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

5. Russian E-Commerce Market Overall

6. 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

7. 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

8. 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

9. Share of E-Commerce in Total Retail Sales
Source: Centre for Retail Research, Hermes NexTec Russia estimations

10. E-Commerce Audience in Russia

11. 145 600 000 people live in Russia
66 000 000 of them use the Internet daily
Source: FOM, TNS, government statistics

12. Internet Audience & Internet Penetration
Source: E-Commerce Europe, Centre for Retail Research, TNS, FOM

13. 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

14. Internet Users Shopping Online
Source: E-Commerce Europe, Centre for Retail Research, FOM, Hermes NexTec Russia estimations

15. 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

16. Average Annual Online Spend per E-Shopper
Source: E-Commerce Europe, Centre for Retail Research, FOM, VISA, Data Insight, Hermes NexTec Russia estimations

17. 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

18. Payment Methods of Online Shopping in Russia
Cash
Credit cards
Electronic money
Other
Source: FОМ, VISA, Hermes NexTec Russia estimations

19. E-Commerce Players in Russia

20. 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

21. TOP-10 Online Retailers in Russia
Physical goods only
Millions of $, 2013
Source: Kommersant, Hermes NexTec Russia estimations

22. 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

23. E-Commerce Trends & Perspectives in Russia

24. 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)

25. 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

26. 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

27. E-Commerce market Structure Changes
Domestic appliances & Electronics ↓, other ↑
Other
Sports
Groceries
Gifts
Luxury
New substantial segments: sports goods, groceries, gifts, luxury

28. #1 European Internet Audience
Russian Internet Audience will be #1 in Europe in 2 years
with high potential of further growth

29. New Purchasers: Growth Dynamics
Every year the army of Internet shoppers in Russia
becomes 25-30% larger

30. 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

31. 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

32. 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

33. 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

34. Contacts:
Oleg Zhukov
Head of Marketing
Hermes NexTec Russia
Oleg.Zhukov@hermesworld.com
www.hermesworld.com
Thank you!