global ecommerce summit-2015: russia ecommerce

CEOBoris Lepinskikh

russiane-commerce

marketoverview

E96.RUThe Global E-commerce Summit, 2015

The results of 2014: growth

$10,6 BSource: Data Insighte, Russian e-commerce. Annual Report 2014

size of the market

excluding cross-border trade

The Global E-commerce Summit, 2015


The

shar

e of

e-c

omm

erce

in th

e re

tail

sec

tor o

f the

cou

ntry

(201

3), %

Growth rate 2012-2016 (CAGR),%

5

Russian e-commerce

to grow has the potential

times



billio

n ru

b

0

150

300

450

600

2010 2011 2012 2013 2014

marketcontinuesto ascend

35%+Source; Data Insighte, Russian e-commerce. Annual Report 2014The Global E-commerce Summit, 2015

The results of 2014: audience

Source: Public Opinion Foundation, 2014

user

, milli

on p

eopl

e

2005Fall

2006Fall

2007Fall

2008Fall

2009Fall

2010Fall

2011Fall

2012Fall

2013Fall

2014Fall

the annual growth of the number of users, % (18+)

penetration, %


audience and Internet penetration in russia


Source:TNS Web Index, 2015The Global E-commerce Summit, 2015

dynamics of internet penetration (Monthly Reach,%)

MoscowSaint PetersburgRussia

37%+growthcustomers

Source: Data Insighte, Russian e-commerce. Annual Report 2014Y/Y




25,4 Mthe numbersof customersin the age18-64 years

Source: Data Insighte, Russian e-commerce. Annual Report 2014

old




7,7 number ofpurchasesper customerper year



New users live outside Moscow

Source: TheRunet

Moscow

St.Petersburg

Villages

Big Cities(1MM)

500K-1MM

100K-500K

<100K



runet will reach 80m users by 2015

New geographic markets

Engaging traditional buyers to online buyers

Source: PricewaterhouseCoopersThe Global E-commerce Summit, 2015


price

deliverytrust

stock

Usabilityrussia5keycriteria

forchoosingonlinestorein

Source: PricewaterhouseCoopers


pricedelivery

trust

stockUsability


5 UK

keycriteria

forchoosingonlinestorein

195 M of orders

cross-border

delivered,including

The results of 2014: cross-border

The Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014


115%+ Growthof cross-border

tradeThe Global E-commerce Summit, 2015 Source: Data Insighte, Russian e-commerce. Annual Report 2014

$1,6 bshareof cross-bordershopping



the number

fromeorders

abroad

47,7MThe results of 2014: cross-border


72%from China



The shareof orders


share of the total online-market

share of cross-border sales in the category

share of domestic orders

сlothing for adults

electronics white goods & household goods

The results of 2014: top categories

children's productscomputers, laptops & accessories

Source: Data Insighte, Russian e-commerce. Annual Report 2014The Global E-commerce Summit, 2015

top-5 product categoriesrussia e-commerce market

2007 2007-2011 2011-2015Federal competition

• Market consolidation;• Strengthening players from regions;

• Strong regional competition;

• Price competition;• First M&A;• Moscow companies starts shipping to regions.

• First local startups;

• Offline retail entry e-commerce only for branding;

• High margins.

GrowthVacuum


Features: regional markets

roadmap regional markets

Features: marketing


targeting really important

12

Russia has 10 cities withpopulations over 1M people

the distance betweenthe end of more than2000 kilometers

Features: logistics


barсelona-tallin3317km

Features: logistics

Features: logistics large in size

no advanced 3PL-operatorslogistics extremely expensiveOnly one operator with national coverage - state postal service

practically everybody company has to build its own logistics


3226kmown logistics network of E96

Features: localization


localization really important

Source: Levada-Center, 2014

only 11% of russiansare more or lessspeak englishIn 2014 Aliexpress hit the top-10 most popular websites in Russia

Features: localization


localization really importantInternational retail sales now represent 63% of total sales with international revenues jumping 47% year-on-year in the company's fourth quarter. It comes after Asos launched a site in Russia on 1 May 2013.

«EssentialRetail.com

Features: marketing


local not globalLocal services number one in Russia

VK.comyandex.ru VSfacebooK.com

google.comyandex.market

google merchantyandex.money pay pal

Features: marketing


cream skimming

acquisition

Fast growing Russian stores focus on new customers

Features: payment

The share of prepaid orders

The share of orders paid cards

preferredis mostCash ondelivery

payment


method

Features: behavioral characteristics


up to 20%of the orders are made by phone.Each order online store need to be confirmed by phone.

About us: local touch, global ambitions

2007 - company foundation

2013 - net revenue 4,6 B rubles (+65% Y/Y)

2013 - raising round А from IQ One Holdings for expansion and business development

2014 - 200 000 SKU

2013 MAU - 1 MM (+75% Y/Y)

2011 - start conquering regions

2014 - Top-15 most effective online stores (Forbes Russia)


Boris Lepinskikh, CEO e96

[email protected]

slideshare.net/Lepinskikh/@BorisLepinskikh

global ecommerce summit-2015: russia ecommerce

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