Internet Retailing in Russia

PROSPECTS

Internet retailing continues to demonstrate double-digit value growth

In 2018, internet retailing continued to see rapid growth in current value terms. The main reason continued to be the growth of internet users amongst the population.

Cross-border trade demonstrates confident growth

Russian consumers continued to search for price offers abroad; thus, foreign e-commerce posted higher growth than domestic e-commerce in 2018. Nevertheless, foreign e-commerce continued to account for a slightly lower share than domestic e-commerce, with the leading Chinese online stores accounting for more than half of foreign e-commerce sales.

Store-based retailers are active in internet retailing

Another strong driver of the development of internet retailing continued to be activity by modern grocery retailers and non-grocery specialists in terms of developing internet sales channels. The creation of omnichannel business models was inevitable amongst the majority of players in 2018.

COMPETITIVE LANDSCAPE

Alibaba Group Holding posts rapid growth in Russia

The undoubted leader in internet retailing, AliExpress, operated by Alibaba Group Holding, managed to post growth above the overall channel in value terms in Russia in 2018. The popularity of this online store amongst Russians continued to grow, accounting for 20 million active users, who regularly make at least one transaction during the year, according to Alibaba Group Holding’s official data.

Alibaba has ambitious growth plans

Despite its rapid growth, Alibaba Group Holding has announced ambitious plans in Russia: the creation of a joint venture based on AliExpress Russia together with Mail.ru Group, Megafon and the Russian Direct Investment Fund.

The joint venture between Sberbank and Yandex

Another strong player which recently appeared was the joint venture between Sberbank and Yandex. In April 2018, the deal, priced at RUB60.

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