Data Insight Fedor VirinEDAYS June 05

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Russian E-commerce
in the middle of 2015
Data Insight
EDAYS June 05

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Market volume

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E-commerce audience
Number of online shoppers* 25 mln
(1/3 of Internet audience)
* Online shoppers – those who made in last 12 months at least 1 purchase of physical
goods in Russian or foreign online store
26%
7%
43%
24%
Russian population, 18-64
∑ 97 mln
online shoppers
has experience of online
shopping in the past
has no experience of
online shopping
don't use Internet

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Number of online orders
25,4 mln of online shoppers
х
7,7 online orders a year per shopper (in average)
=
195 mln of online orders
made by Russians in 2014
(148 mln – domestic, 47 млн. – crossborder)
NB! One order may include multiple orders

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AOV and market volume
195 mln orders
х
average order value
3300 rubles (~$85 by 2014 rate)
=
645 bln rubles of online sales*
* Estimate doesn’t include (a) food delivery, (b) airplane and train tickets, (c) digital
goods, (d) C2C, MLM and group shopping, (e) purchases for corporate consumption or

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Market dynamics

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Market tripled in 4 years
Online B2C sales of physical goods by Russian online stores
180
235
315
415
560
0
100
200
300
400
500
600
2010 2011 2012 2013 2014
Domestic online sales, bn rubles

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Growth rates year by year
0%
10%
20%
30%
40%
0
100
200
300
400
500
600
2010 2011 2012 2013 2014
Market size, bn rub Nominal growth
Inflation growth Real growth

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2014 results: number interpretation
Nominal growth: +35% (best result since 2010)
Thought ~1/2 of this growth came from inflation-defined
increase of ruble AOV (dollar AOV declined)
Number of orders grew only 18% (worse result since
measurement began)
Without consumer panic in the end of 2014 the growth
would be only +9% by orders and +17% by rubles

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2015: first 5 months
January and February – still high sales, as prices for goods
imported before ruble depreciation were still attractive
Every next month growth rates become lower – with May
2015 2% below May 2014 by number of orders
Beneficiaries of 2014 December rush – retailers of
electronics – shows dynamics below other segments
Meanwhile, all ecommerce segments feel better
than offline retail

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Disappearing growth
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014 - Q12014 - Q22014 - Q32014 - Q42015 - Q12015 - Q2
Online sales
growth y-o-y
(N of orders, domestic
segment only)

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Insights about
online shoppers

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Large research project
We conducted complex research of online shopping and
shoppers in Russia – to build ‘data matrix’ on different
aspects of the market
Joint project by:
research agency Data Insight
CMS-platform InSales
Payment service provider PayU
The research is based on the program of
customers surveys

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Methodology of the research
928 Internet users
(18-64 yo)
Share of online shoppers
Profile of online shoppers
Frequency of online purchases
E-commerce experience in years
3472 онлайн-
покупателя (18-64)
Details on last and previous
purchases
Choice criteria
Expectations
etc.
offline
survey
online
survey
Representative data on
consumer behavior.
More than 400 variables.
Sample error ±1.7%
October –
November
of 2014

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How consumers choose

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Why bought online, and not offline
48%
33%
31%
25%
25%
21%
16%
11%
9%
9%
6%
3%
online price was lower than in regular stores
it's easier and more convenient to choose and compare goods online
it's convenient to look online for place with best price
more convenient to order online than to go to regular store
convenient to buy right with delivery to home
there is no such goods in regular stores of my city/town
there are more information online about goods
no time/opportunity to go to regular stores
don’t know where it's possible to buy this product offline
don’t like to visit shops
used to oder almost everything online
other
Key: price, convenience, convenience …

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Purchase models
30%
10%
58%
other
2% hadn't knew in advance what will buy,
and choose the product while visiting
online stores
bought some other items in addition
to product, that had decided to buy in
advance
had knew in advance what will buy
40% of online orders are fully or partially spontaneous
or at least not “predetermined”
Which statement is the most accurate for your recent online
purchase?

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Choice of place to buy
44%
4%
25%
27%
knew in advance where will buy
hadn’t plan the purchase - retailer
recommend/offer the product
knew in advance few retailers to choose
between
hadn't knew where to buy - looked for
place with best conditions
The place of purchase is “predetermined” for half of
orders
area of
competition
loyal
purchase

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Scenario A: loyal purchases
49%
25%
12%
10%
7%
7%
2%
3%
2%
When you made your most recent online purchase, why
you came to this specific online store?
made purchases in this online store before
recommended by relatives or friends
well-known retailer name
read online about special offer from the retailer
clicked on the ad
responded to the offer received via e-mail or SMS
responded to offline ads
other
don’t remember, hard to say
% of those, who answered that knew in
advance where to buy or that the retailer
offered itself the purchase

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Scenario B: choice between retailers
47%
15%
14%
13%
13%
9%
6%
5%
5%
5%
2%
How you choose the online store, where you made your most recent
purchase?
via online search
compared prices and conditions in few online stores (they knew before)
by recommendation of relatives or friends
choose the place where made purchase before
via Yandex.Market
on base of reviews available online
choose the shop that is well known
via other (beside Yandex.Market) comparison sites
on base of online ad or email promotion
on base of ads in search results
on base of offline ads
% of those, who answered that choose
between few or many online stores

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What is good online store?
39%
37%
32%
28%
26%
quality products descriptions
availability of product reviews
availability of detailed and clear info on delivery conditions
availability of different payment options
convenient structure of products catalogue
Among listed, what is the most important for online store?
What is necessary to form your opinion that this is convenient
website and good online store? (top 5 answers)

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Delivery and payments

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28%
41%
20%
2%
6%
1%
36%
26% 24%
2%
7%
1%
courierdelivery
RussianPost
collectionpointof
onlinestore
collectionpointof
logisticcompany
in-storepickup
postterminals
all orders
domestic orders
Delivery methods

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52%
6%
25%
10%
8%
How the recent purchase was paid
cash on delivery
card on delivery
online payment by card
online payment via e-money system
other / hard to say
Payment methods

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52%
6%
25%
10%
7%
66%
8%
14%
6% 6%
cashondelivery
cardondelivery
onlinepaymentbycard
onlinepaymentsviae-
moneysystem
other
all orders domestic orders
Payment methods
Estimate of online payments share highly
depends on inclusion/exclusion of
cross-border sales into statistics

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84%
5%
4%
4%
0,3%
2%
1%
only desktop / laptop
only tablet
only smartphone
both smartphone and desktop/laptop
both smartphone and tablet
both tablet and desktop/laptop
all three devices
mCommerce is coming
Mobile devices are
used (at least at some
stage) in every sixth
online order of
physical goods
*материальных
товаров
Which devices did you use while choosing product and seller and making the
order itself?

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First agency in Russia, that is fully focused
on research and consultancy in digital economy
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a@datainsight.ru +7 495 5405906
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