Seize the opportunity in the crisis: Russian E-Commerce Market
Russia is predicted to achieve a double digit rise in E-Commerce sales over the coming years, although its economic outlook is less positive. Despite the current economic instability in this region, several domestic and foreign E-Commerce companies, such as Ozon.ru and JD.com, are reported to have been achieving consistent growth in E-Commerce sales. (Business Wire, 2015)
A single spark in the dark
According to recent report from the Public Opinion Foundation (2014), 56% of the Russian population, which translate to 69 million people, are active on the Russian Internet platforms. What deserves more attention is that 56.5% of internet users are online daily.
In the past decade, there has been a dramatic increase in number of internet usage in Russia. Despite having a lower internet penetration rate than Europe as a whole, Russia owns the largest online market in Europe in terms of the number of active internet users.
The estimated size of the Russian e-commerce market, which includes the traffic tickets sales and excludes the sales of B2B and hotel bookings, is around US$16.5 billion. Though online retail sales make up only 2% of all Russian retail sales, online retail is seeing a growth of 25-30% year-over-year. (Anna Oshkalo, 2014)
A bright future arises from current turmoil
Compared to the entire economic turmoil across Russia, the E-Commerce market has not suffered. The market for physical goods in the domestic segment rose to 560 billion rubles in 2014, 35% greater than the previous year. (Data Insight, 2014) Although this growth rate was slower than the past years, it was still inspiring enough to stand out in the Russian retail market.
While the crisis in Russia has influenced several segments such as electronics and computer parts in the online market, it is predicted that there will still be a much more modest growth this year in the Russian online market as a whole. This strong growth is to be led by the giant players in this market, as per the announcement from Groupon Russia, Ozon and Ulmart. (E-Days, 2015)
For example, Ozon.ru stated an average of 40% growth in value in the first quarter of 2015, with some specific categories even exceeded 100%.
In the long-term prospects, experts in this industry are still confident of Russian e-commerce market. East-West Digital News also highlights that the e-commerce market could reach $50 billion in the following five years.
For more information on business opportunities in Russia, visit the Healy Consultants Group PLC website and read more about Russia. Alternatively, you can contact our experts directly by email at
- Business Wire, Research and Markets: Russia B2C E-Commerce Sales Forecasts: 2015 to 2018, http://www.businesswire.com/news/home/20150807005397/en/Research-Markets-Russia-B2C-E-Commerce-Sales-Forecasts#.VefDFtKqpBc [accessed on 03/09/2015]
- Anna Oshkalo, All you need to know about Russian e-commerce in 2014,http://www.russiansearchtips.com/2014/08/need-know-russian-e-commerce-2014/ [accessed on 03/09/2015]
- Anna Oshkalo, Russian E-commerce Turnover 25% Up in 2013, http://www.russiansearchtips.com/2014/05/russian-e-commerce-turnover-25-2013/ [accessed on 03/09/2015]
- Data Insight, http://www.datainsight.ru/ [accessed on 03/09/2015]
- E-Days, Amid crisis, key Russian e-commerce players claim continued growth, http://www.ewdn.com/2015/06/19/amid-crisis-key-e-commerce-players-claim-continued-growth/ [accessed on 03/09/2015]
- East-West Digital News, E-COMMERCE IN RUSSIA, http://www.ewdn.com/e-commerce/summary-part1.pdf [accessed on 03/09/2015]