China, the new driving force of Russian e-commerce

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About East-West Digital News

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About East-West Digital News

The first business information and research agency dedicated to digital business and e-commerce in Eastern Europe

•  Russia: EWDN.COM •  Ukraine: UADN.NET

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E-commerce in Russia: The domestic scene

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Europe’s largest Internet market

•  67% of the population connected: Still much potential ahead

•  Further growth fuelled essentially by the regions (penetration rate around 60%)

•  Currently up to 80 million users in Russia* (+ 20 million Russian-speaking users outside Russia)

* Unique users monthly as of late 2015. EWDN estimate based on FOM data

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The domestic e-commerce market in 2014

in nominal terms from 2013

(+10-15% in real or USD terms)

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+30% including

$14.5bn (560bn rub.)

for physical goods

Total domestic market size: approx. $25bn

2020 FORECAST: $50 BILLION

Sources: Data Insight, EWDN

China-to-Russia cross-border sales

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Cross-border sales to Russia in 2013-2014

Source: EWDN & NAMO

Total Russian B2C cross-border

market:

Estimated share of fulfilled orders

from China

Around 40%

Around

70%

2013

Approximately

$1.5bn

Approximately

$2.5bn

2014 2013 2014

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40m packages 70m packages

2014: How AliExpress became #1 in Russia

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

How AliExpress overran eBay in Russia (traffic of both sites in million monthly users

from Sept. 2013 to Aug. 2014)

Source: Gemius

RUSSIAN AUDIENCE: #1 e-commerce site in Russia

PACKAGES TO RUSSIA: At least +60% in 1 year

•  May 2014: 120k packages per day

•  Late 2014: at least 160k packages per day

•  1m+ packages on peak days! Source: EWDN expert pool

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…ALIEXPRESS GROWTH CONTINUED IN 2015!

Top platforms for Chinese players in Russia (by traffic in July 2015)

B2C platform

Many Chinese retailers use US marketplaces Amazon and eBay to sell to Russian consumers.

B2C platform

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Online retailer (market entry in June 2015)

C2C platform

B2C platform

B2B platform

B2C platform B2C platform

B2C platform

B2C platform

Based on number of monthly visits from Russian audience in July 2015 – Source: Similar Web via A. Petrovsky (Price.ru / Rambler & Co)

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How we can help you: •  Market entry consulting •  Marketing and PR services

in Russia, China and other countries

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Let’s work together!

Adrien Henni, Chief editor East-West Digital News Please feel free to contact me at editor@ewdn.com

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