110M internet
users @80%
penetration
Russia – online retail market overview
Online retail (of total) <2% Online retail (USD) 10B
(Marketplaces share 1,6%)
Population 140 M Internet users 75M
Internet penetration 55%
Total retail (USD) 632,5B
Key market figures (2011)
Market potential 2015
Credit card penetration 30%Cash on Delivery 80%
Source: Goskomstat, Data Insight, Expert opinions, РБК.research, etc.
20B e-commerce
market@2,2%
of total retail
Perspective 300% increase of non-cash payments, big players develop their own logistic and delivery services.
Russia – online retail categories & playersTop players by category 2010-2011AVG monthly turnover by segment
Source: Source: inSales, Data Insight, Expert opinions, Internal research service of AMEG.
Competitors Category GAV 2010 GAV 2011 Visitors MarginalityOzon.ru Books 120 000 000 155 000 000 9 400 000
Books - 40%
Bolero.ru Books 33 333 333 170 000 40%Otto + Quelle Clothes, etc 90 000 000 130 000 000 10 200 000
>70%
KupiVIP.ru Clothes, etc 80 000 000 160 000 000 8 600 00035-50%
notik.ru Computers 36 666 667 510 000 5%Groupon.ru Coupons 2 333 333 96 000 000 19 000 000 50-100%Kupikupon.ru Coupons 450 000 30 000 000 11 000 000 50-100%Biglion.ru Coupons 38 400 000 29 000 000 50-100%
Holodilnik.ru Electronics 100 000 000 185 000 000 1 200 000 12%Uti-note.ru Electronics 40 000 000 125 000 000 350 000
3-5%
Utkonos.ru Foods 333 333 333 980 000 >16%Top-shop.ru Market 30 000 000 36 000 000 1 400 000
>50%
Dostavka.ru Market 26 666 667 40 000 000 940 000 10-20%Wikimart.ru Marketplace 11 157 143 43 333 333 3 000 000 6%Molotok.ru Marketplace 81 462 407 105 000 000 4 900 000 3%
Ele
ctro
nics
Com
pute
rs
Clo
thes
Fur
nitu
re
Chi
ld
Mob
ile
Foo
d
Aut
opar
ts
Russia – eCommerce BCG matrix
0.00% 0.50% 1.00% 1.50% 2.00%0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
MolotokWikimartUtinetOtto + QuelleBoutiqueOzon
Market Share
Gro
wth
stars
dogs cash cows
problem childrens
Russia – B2C market entry options
1. Mobile devices market growth• Implement verticals for electronic devices according to dealextreme.com
model• 30% margin in drop-shipping model
2. Shoes, clothes and accessories• Serve on-line shops • All required business processes in place to offer turnkey solutions to offline
companies • One of the options to set up partnership with exclusive distributor of clothes
3. Own logistic and delivery• Invite to our marketplace sellers from: China, Turkey, US, Poland• Implement our own Delivery Service and provide guarantee for delivery • Find major logistics partner for consolidation of shipments and delivery
Russia
Note: Online web presence of traditional offline retailers are not included in this analysis
B vertical
general
C
Consumer Electronics
Media & Books
Fashion & Lifestyle
e-tailers
marketplaces
Shopping club
Fashion & Lifestyle
Shopping Clubs
Media & BooksConsumer Electronics
General e-tailer
Marketplace
Price Comparison
Daily Deals
Competitors GAV 2010Holodilnik.ru 100 000 000
Uti-note.ru 40 000 000
notik.ru 36 666 667
Sotmarket.ru 34 952 000
Citilink.ru 30 000 000
technopark.ru 30 000 000
Ulmart.ru 26 666 667
003.ru 23 333 333
Competitors GAV 2010Top-shop.ru 30 000 000
Vasko.ru 30 000 000
Dostavka.ru 26 666 667
Techhome.ru 16 004 000
Competitors GAV 2010Ozon.ru 120 000 000
Pleer.ru 60 000 000
Competitors GAV 2010Otto + Quelle 90 000 000
Wildberries.ru 43 333 333
Boutique.ru 40 000 000
Laredoute.ru 40 000 000
Sapato.ru 6 812 000
Competitors GAV 2010KupiVIP.ru 80 000 000
club-sale.ru 26 666 667
Competitors GAV 2011Groupon.ru 96 000 000
Kupikupon.ru 30 000 000
Biglion.ru 38 400 000
Competitors GAV 2011Molotok.ru 105 000 000
Wikimart.ru 43 333 333
Competitors GAV 2011Yande .Market only CPC
model
Price.ru only CPC model