Trends in Russian eCommerce
According to a report produced by Data Insight in March 2012, the size of the Russian eCommerce market currently stands at 310 billion rubles ($9.6 billion, €7.4 billion). Physical goods account for 74% of this figure, amounting to 230 billion rubles, while tickets and digital goods account for the remaining 26%. In terms of growth, the market grew by 29% in 2011 and is expected to grow by at least 25% in 2012, meaning an annual market increase of 70-80 billion rubles. The number of online shoppers is increasing at an even faster rate, although newcomers continue to spend relatively little online.
Estimates show that 245,000 online orders for physical goods are handled every day on average, totalling 89 million annually. 125,000 of these orders (45 million annually) are made in Russia’s regions, while two thirds of all orders are made in national online stores. The Russian eCommerce market is fairly evenly distributed among the three main types of goods: 36% of the market is taken up by standardized, easily deliverable goods where competition is price based; 32% is held by goods that are more difficult to deliver and which are thus bought within regions; and 32% is taken up by largely non-standardized goods with maximum potential for orders originating in Moscow or abroad. Related to this, experts have also observed a shift in online stores’ approach to their logistics operations as small and medium-sized stores move away from handling their own deliveries to outsourcing them to a specialist company, while only some of the largest online players continue to develop their own logistics services. In the regions, the distribution of goods bought on the eCommerce market is as follows: 27% of purchases are for train or plane tickets; 17% for clothing and footwear; 14% for household appliances; 10% for portable electronics; 7% for computers and office equipment; 5% for books; 5% for goods for children; and 15% for other goods. The market breakdown by region sees Moscow and Moscow Region accounting for 45% of the total and St. Petersburg and the surrounding region accounting for 11%. The third largest region for eCommerce is Sverdlovsk Region at 4% of the total. Other regions in the Top 10 amount to 13% of the market in total, while those in positions 11-25 also combine to make up 13% of the market. The remaining regions account for 14%.
Following data on the development of the eCommerce market in the regions, it is clear that the leaders for online shoppers and activity are the remotest regions, including Sakhalin, Magadan, Kamchatka, Sakha and Yamal. The Urals follow with Sverdlovsk and Chelyabinsk Regions as well as Khanty-Mansi Okrug. There is also above-average interest in eCommerce in the south of Russia’s Far East, in Primorye and Khabarovsk Krai, and well as in several of Moscow’s surrounding regions such as Tver, Kaluga, Tula, Smolensk and Yaroslavl.