Internet in Russia

RussiaPopulation: 142.9 million

Centre26.9%

Volga20.9%

Urals8.5%

South and North Caucasus 16.3%

Siberia13.5%

Far East4.4%

North West 9.5%

Source: RIA Novosti, 2011

Internet Audience Growth

5Source: www.runet.ru

20042005

20052006

20062007

20072008

20082009

20092010

20102011

20112012

Winter 2012–2013

Fall2012

Summer

2012

Spring

2012

60

50

40

30

20

10

0

daily

weekly

monthly

Year-over-year growth dynamics of the monthly, weekly and daily internet audience (users over 12 years old), by year

Source: www.runet.ru

Global Internet Audience, millions

6

Russia is world’s 6th by number of internet users

China

USA

India

Japan

Brazil

RussiaGerman

y

Nigeria

UK

France

Yandex is the largest player on Russian internet market

8Source: www.runet.ru, September 2013

Mail.ru: 31 projects

Odnoklassniki.ru

Yandex.ru: 32 projects

Android.com, Blogspot (com+ru), Chromium.org, Feedburner.com, Google (ru+com), Panoramio.com, Sketchup.com, Youtube.com

Vk.com

Mediawiki.org, Wikibooks.org, Wikidata.org, Wikimedia.org, Wikimediafoundation.org, Wikinews.org, Wikipedia.org, Wikiquote.org, Wikisource.org, Wikiversity.org, Wikivoyage.org, Wiktionary.orgFacebook.com

Avito.ru

Anekdot.ru, Autonews.ru, Biztorg.ru, Cnews.ru, Finolymp.ru, Informer.ru, Ivd.ru, Kompaniyagoda.ru, Kupongid.ru, Kvotvet.ru, Loveplanet.ru (сайт), Narodnayamarka.ru, Qip.ru, Rbc.ru, Rbc.ua, Rbcdaily.ru, Readme.ru, Relax.ru, Salon.ru, Smotri.com (сайт), Tvidi.ru, Utro.ru, Vnegoroda.ruFotostrana.ru

27.5

25

24.1

18.6

16.7

4.4

4.1

3.3

2.9

2.8

Top Internet Sites in Russia

Yandex Audience

57 000 000 per month

9Source: TNS 2013, September

% of all online population in Russia

45 000 000

per week

27 800 000

per day

26.3 %43.4 %54.5 %

10

Jan. 08

Jan. 09

Jan. 10

Jan. 11

Jan. 12

Jan. 13

Jan. 14

Source: Yandex Metrica, TNS

Yandex beats Russia’s most popular TV channels by daily audience

E-commerce in Russia

Russia’s Online Retail Market

15 bln USD in 2013 year

27.4 million shoppers

More than 30% annual growth

12Source: Cushman&Wakefild, 2013

13Source: Morgan&Stanley

E-commerce Growth Rates

14Source: Comscore

Dynamics of the monthly visitor audience to Russia’s most popular e-commerce websites by month, thousands

15

Yandex.Market vs Cross-Border Retailers

Cross-border marketplaces are conquering the Russian audience

Average daily visitors in Russia: Cross-border vs Yandex.Market, % Daily orders from

Russia:

*According to AliExpress and Ebay** Yandex.Metricа, сonversions to purchase

AliExpress – 50 000*

Ebay – 30 000*

Yandex.Market – 50 000**

50.0 %

37.5 %

25.0 %

12.5 %

Yandex.Market

17

Yandex.Market is Russia’s leading system for choosing products, services or sellers and making purchases online

18

Yandex.Market Audience

Source: TNS 2013, September, Yandex Metrica

% of all online population in Russia

17 000 000

per month

7 200 000

per week

1 600 000 per day

1.5 %6.8 %16.3 %

19

Yandex.Market

Source: TNS 2013, September, Yandex Metrica

% all online sales in Russia

50 000 000 product offers in 2 000 categories in

Russia

13 %

4.0 %

3.0 %

2.0 %

1.0 %

20Source: Comscore

Conversion-to-Purchase Rateson Russia’s top 20 e-commerce sites

3.6 %

2.2 %

1.1 %

1.1 %

0.7 %

1.0%

21Source: Yandex Metrica

Yandex.Market Traffic Sources

1%

5%

5%

17%

18%

51%

22Source: TNS 2013

Brand AwarenessMost popular site for searching, purchasing or choosing goods online goods

26%20

%

22%14%

21%13%

14%

7%

5%2%

5%1%

4%1%

0%

7.5%

15%

22.5%

30%

Online Customers in Russia

Search Engines as Tools for Making a Purchase

24Source: Euromonitor, Morgan Stanley

87% of online customers in Russia use search engines to make a purchase decision

56% of them use Yandex

Cross-border shoppers 36%

25© GfK | August-September 2013

Online Shopping in Russia

In 2012, one in three online customers in Russia ordered a product or made a purchase abroad

Domestic shoppers 95%

25% 21

%

59%

67%

0%

17.5%

35.0%

52.5%

70.0%

26

Reasons for Сross-Border Shopping

A large proportion of online shoppers in Russia are aware of cross-border shopping opportunities

62%

20%

17%

11%

8%

6%

4%

3%

3%

5%

© GfK | August-September 2013

27© GfK | August-September 2013

Reasons Against Cross-Border Shopping

41.5%

18.0%

17.6%

15.8%

12.1%

11.5%

8.3%

7.4%

6.6%

3.4%

3.0%

1.4%

28

Customer Concerns about Cross-Border Shopping

© GfK | August-September 2013

% of all Russia’s online shoppers

38.8%

32.4%

32.0%

27.4%

22.4%

21.0%

17.3%

8.3%

5.2%

5.1%

0.3%

0.2%

0.2%

Why Yandex?

30

31© GfK | August-September 2013

65%

10%

25%

Would you like to browse foreign goods on Yandex.Market?

Yandex.Market for foreign sellers

Goal

To offer customers in Russia a fast, safe and easy way to choose products and make purchases online globally

33

Yandex Market page with foreign seller’s offers

34

Seller’s page on Yandex Market

35

Specification to start

36

Service demands from seller

• Site in Russian language• All offers with Russian titles and

Russian description• Customer support – answers via mail

in Russian• Interfaces for checkout and delivery in

Russian • Direct delivery to Russia• New goods only

Categories

• Fashion and Accessories • Children and Mother care• Sports• Household

Cooperation issues

• Fully free entrance for all offers• No limits for number of offers• Pay only for clicks• Raise your offer in the listing using

bidding system• Cost of click just from 0,1$

37

Thank you andWelcome!