E-commerce market, Russian hot spot Daria Ivanova, senior consultant, Finpro St. Petersburg April, 2012
Jan 12, 2015
E-commerce market,Russian hot spot
Daria Ivanova, senior consultant, Finpro St. PetersburgApril, 2012
10/04/2023 2© Finpro
Internet usage in Russia
Sprin
g 20
03
Sprin
g 20
04
Sprin
g 20
05
Sprin
g 20
06
Sprin
g 20
07
Sprin
g 20
08
Sprin
g 20
09
Sprin
g 20
10
Summ
er 2
010
Autum
n 20
10
Win
ter 2
010-
2011
Sprin
g 20
110
20
40
60
80
100
120
140
160
Monthly usageWeekly usageDaily usage
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Online sales development
Picture: Online sales development in Russia 2001 – 2013, billion RUR, estimate
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
100
200
300
400
500
600
700
800
900
2010 2020
Germany 32 billion EUR 80 billion EUR
Russia 5,8 billion EUR 60 billion EUR
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Geographical distribution of Internet-users
TOTAL 52,9 mln users
North-West, 12% & 6,5 ml.
Urals 9% and 4,5 ml.
Far East 5% and 2,3 ml.
Central Region 28% & 15,2
ml.
Volga region, 19% and 9,9
ml.
South region 14% and 7,7
ml.
Siberia 13% and 6,8 ml.
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Product groups / % of online deals
book
s
wear,
footw
ear
tick
ets
(fl
igh
ts,
tra..
.
ele
ctr
on
ics
hom
e a
pp
lian
ces
gif
ts
soft
ware
au
dio
, vid
eo d
iscs
ch
ild
ren
good
s
food
s
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %29 %
23 %
18 %17 %
15 % 15 %13 %
12 %10 %
7 %
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Purchase volumes / per single purchase on average
Product groups Share of end clients
Average spending ,
RUR
Average spending ,
EUR*Traditional books 28,90% 1 600 40
Clothes and footwear 23,20% 4 400 110Travel tickets 18,40% 11 700 292,5
Portable electronics (mp3 players, phones, cameras etc.)
16,80% 8 200205
Small home technique 15,40% 4 800 120Presents 14,80% 2 200 55
Software 12,80% 3 000 75Audio / Video on CD / DVD 12,30% 2 500 62,5
Computers & Office technique 9,90% 10 400 260Drugs & Lances 8,80% 2 600 65Electronic books 8,00% 2 800 70
Concert & Theater tickets 7,80% 2 700 67,5Large home techniques 7,00% 17 300 432,5
Sport goods 6,00% 4 700 117,5PC games 5,70% 1 600 40
Home video & audio 5,60% 15 700 392,5Audio & Video content 5,40% 2 100 52,5
Average exchange rate for 2010: 1 EUR = 40 RUR
10/04/2023 7© Finpro
Finnish Internet-shop opened in Russia
www.dermosil.ru www.dermoshop.fi
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Social networks In Russia
• Vkontakte.ru – over 100 000 000 accounts;• Odnoklassniki.ru – over 45 000 000 accounts;• MySpace – over 40 000 000 accounts;• Facebook (facebook.com) – over 30 00 000 Russian
accounts (in total 750 million accounts);• Live Journal – 2 443 667 Russian accounts• Twitter (twitter.com) – over 350 000 Russian
accounts (in total over 200 million)
New opportunities for Marketing & Sales
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VKONTAKTE
• VKontakte is the largest social network in Runet, the third popular site in the Ukraine and Kazakhstan, the fourth in Belarus. The website initially positioned itself as a social network of students and graduates of Russian higher educational institutions, later it started to call itself “modern and fast method of communication”.
• In February 2011 daily audience of social network exceeded 23 million people.
106 941 400 accounts on 26.10.2011
Marketing
opportunities
•Banner advertising
which can be
targeted precisely to
certain target
groups
•Brand communities
•Flash applications
for sales and
advertising
•Social media
marketing
10/04/2023 10© Finpro
Marketing in social networks
Different companies have different opinion on the importance of social media marketing
10/04/2023 11© Finpro
Future trends (world)
Easy & quick shopping More options to increase reliability
Easy delivery & payments Small offline sellers move to Internet
E-commerce in travel segment
10/04/2023 13© Finpro
Why e-commerce in travel
USA and UK Russia0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
45 %
50 %45 %
7 %
Share of on-line market in travel
2011 20150.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
3.2
6.9
E-commerce travel in Russia, bln euro
• According to the Amargo, rate of growth of on-line travel are 35-40%• Share of self-organized tour to Finland has reached 45-55% in St.
Petersburg
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St. Petersburg citizen
67
13
6
73 3
1
Never been in Finland Less than once per yearOnce per year2-3 times per year4-5 times per yearAlmost once a monthSeveral times per month
Information sources
Date © Finpro 15
May 2009, % November 2009, % May 2010, 50
10
20
30
40
50
60
70
Internet Words of mouth
Tour companies' reccomendations Guides
Magazines and journals TV-programs
- There is not surprise that Internet is the most popular source of information for target audience (the research was made among Internet users)
- However “words of mouth” remains the essential source of information in Russia. Opinions of friends and relatives are always important for Russian customers
Main players activities: countries
All Scandinavian countries have their WEB presents in Russian languages: Denmark http://www.visitdenmark.ru Sweden http://www.visitsweden.com/shveciya/ Norway http://www.visitnorway.com/ru
Content of these sites are very similar: country, its culture, events (festivals, celebration etc), hotel choice and booking, transportation, regional overview of the country, place to go (museums, restaurants, clubs),
nature, video materials about country.
However, there are certain differences. For example Norway promotes country via followed digital media: http://www.facebook.com/visitnorway.ru about 500 users in the club http://twitter.com/visitnorway_ru about 100 users in the club http://blogs.mail.ru/mail/visitnorway/ http://vkontakte.ru/club14063861 about 350 users in the club
Sweden has its own community: www.communityofsweden.com Denmark has its own community as well: www.okeandruzey.ru/Denmark+1.html
Date © Finpro 16
http://blogs.mail.ru/mail/visitnorway
Date © Finpro 17
Role in travelling Information about country, travel tips, place to go. Movies and articles about country
Key Topics Stories about Norway
Popularity Friends:378Readers:458Subscribers:517
Facilitator of the site Created in 15.06.2009 byNorway tourist board
Advertising www.visitnorway.ru promotion
Activities to increase stickiness Competitions for users
http://twitter.com/visitnorway_ru
Date © Finpro 18
Role in travelling
Country’s video. Materials about country
Key Topics Video, pictures, stories about countries
Popularity 102 of users in the group
Facilitator of the site
Norway tourist board
Advertising www.visitnorway.ru promotion
http://www.facebook.com/visitnorway.ru
Date © Finpro 19
Role in travelling
Official tourist portal about Norway
Key Topics Link to video, pictures, stories about courtiers, mini-forum
Popularity 500 users in the group
Profile of the users
No data. Facilitator of the site Norway tourist board
Advertising www.visitnorway.ru promotion
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Example of social media sales process
Creation of group/ topic devoting to “place, activity”
Basis information upload, link to the participants web-pages
Initiate of the discussion, feedback collection
Question in the framework of basis information – Finpro answer
Question outside of F.A.Q. – Finpro will contact company representative and
answer later
Follow up workshop will be conducted once in 3-4 months