2014: wikimart and the russian ecommerce highlights
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Wikimart front-end for type-in customers
2014: Wikimart and theRussian Ecommerce Highlights
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59.0 58.452.1 47.9 44.6 41.1
33.425.8 23.8 19.8
Mail.ru
Yandex
VK.com
Youtube.com
Odnoklassniki.ru
Wikipedia.org
Avito.ru
Facebook.com
LiveJournal.com
Russian internet audience: large and growing
Internet audience size by country, 2013 (m ppl)
Russian Internet market doubled its audience over the last 5 years …
…to become the largest Internet market in Europe…
…still retaining significant growth potential…
…which is likely to further benefit local players
Source: World Bank, EIU, press Source: World Bank
Internet penetration by country, 2013 Top 10 largest websites in the Russian Internet by UMV (m users)
- International players
- Local players
Source: World Bank, EIU, press Source: TNS, March 2014
94%88% 88% 85% 85% 82% 79%
70% 72% 71% 69%59%
Norw
ay UK
Ger
man
y
Switz
erla
nd
USA
Fran
ce
Japan
Spai
n
Pola
nd
Hun
gar
y
Ital
y
Rus
sia
267
10184
7152 56
4233 28
7 7 5
USA
Japan
Russ
ia
Ger
man
y
Fran
ce UK
Ital
y
Spai
n
Pola
nd
Hungar
y
Switze
rlan
d
Norw
ay
3
35 38 41
6170
7684
2%
25% 27% 29%
43%49% 53%
59%
2000 2007 2008 2009 2010 2011 2012 2013Internet audience (m ppl) Penetration (%)
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296.0
207.6
53.035.0 30.0 14.8 10.7 2.9
China US UK Germany France Russia Brazil India
66%54%
40% 39% 34% 31%21% 13%
34%46%
61% 61% 67% 69%79% 87%
China Germany UK Brazil France US India Russia
Top 5 players Other
6.6
9.1
11.7
14.8
2010 2011 2012 2013
Russian online retail: rapidly developing and ready for consolidation
One of the fastest growing markets worldwide…
…already one of the largest yet underdeveloped
in the global context…
…and underinvested compared to other emerging markets…
…with ample opportunity for consolidation
Source: RBC research
Source: Euromonitor
Online retail shoppers, m ppl Online retail market, US$bn
CAGR ‘10-’1
3: 38%
Source: Euromonitor, iResearch
CAGR ‘10-’13:
32%
Source: Euromonitor
Online retail market 2013, US$bn(1)
Source: Euromonitor
Online retail market concentration 2013, %
7.9%(2) 7.3% 10.4% 6.0% 5.5% 2.7% 3.1% 0.7% %,total retail
5.98.0
11.1
15.6
2010 2011 2012 2013
35%
16%
4%
India Brazil Russia
2.9 14.810.7 Online retail market, US$bn
Total investments in Top-3 players(3) as % of online retail market 2013
Notes: (1) Euromonitor except for China (iResearch); (2) As % of total consumption; (3)The following companies were used to calculate investments in Top-3 players in respective countries: Brazil – B2W, Netshoes, Dafiti; India – Flipkart, Myntra, Snapdeal; Russia – Ozon, Lamoda, KupiVIP
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73%69%
65%
Moscow St. Petersburg Cities(>1m)
81%
53%
44%
Moscow St. Petersburg Cities (>1m)
6.4
1.2
7.2
Moscow St. Petersburg Regions
47%
18%
Moscow Cities(>1m)
Cities(0.05-1m)
Russian regions: an immense growth opportunity
Russian regions already reached sufficient internet penetration...
…however majority of online retailers are not present there…
…restricting online shopping take-up in the regions…
…and representing an enormous growth opportunity
Source: RBC research
Source: RBC research
Source: Euromonitor, Rosstat, RBC research
Source: RBC research
Internet penetration (18+ population), May 2013 % of large online retailers present, September 2013
Online shopping penetration (% of internet users), June 2013 Online retail market 2013, US$bn
Online retail as % of total
5.2% 5.8% 1.8%
15-17%
(1)
Notes: (1) Including Moscow region
Total retail, US$bn
123 21 394
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Key online retail developments 2014 – 2017
1
2
3
4
5
New economic reality: wait-and-see for foreign investors, ruble devaluation, stagnation of real incomes
New customer: from Moscow to regions, ever more price-sensitive
New supply: away from distributors, direct supply from Asia and cross-border
New competitive game: from innovation and organic growth to alliances, M&A and operational efficiency
New players: from agile entrepreneurs to heavyweight financial investors
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Russian ecommerce 2017: what to expect?*
Electronics: $11bn
High-margin: $6bn
Cross-border: $3bn
1.
2.
3.
4.
5.
1.
2.
2006 - 09 2010 - 13 2014 - 17
Market Growth $1.2bn to $5bn (4x) $7bn to $15bn (2.2x) $18bn to $27bn (1.5x)
Stage Innovation Emergence of leaders Consolidation
Russian ecommerce leaders 2017: 65% of the market
*Assuming flat ruble/USD exchange rate
1.
2.
3.
4.
5.
Time Period