SYNOPSIS
Provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of the latest best practice in online retail site design- Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time, and the key drivers of this market in the futureSUMMARY
Why was the report written?
“Consumer Attitudes and Online Retail Development in Russia” is the result of Canadean’s extensive market research covering the online retail industry in Russia. It provides the magnitude, growth, share, and dynamics of the online retail market in Russia, and is an essential tool for companies active across Russia’s online retail value chain and for new companies considering entry into the Russian online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to the Russian online retail environment. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon, whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller companies, the report provides insights and ideas about how best to approach growing online sales for your business.
What is the current market landscape and what is changing?
While the online shopping markets in Moscow and St. Petersburg are strong, key to the future of online shopping attitudes and behaviors in Russia are the developing cities of the country’s Southern and Eastern regions, which have rapidly growing populations, whilst infrastructure investment is bringing down the price of broadband connections.
What are the key drivers behind recent market changes?
Population growth in urban areas, increasingly affordable internet connections and growing computer literacy, will combine to make Russia one of the most valuable e-commerce opportunities in the world; however, security issues with online payments and the complex logistics of delivering goods across such a vast country may stunt the growth of online markets.
What makes this report unique and essential to read?
Consumers have been reacting to the effects of the global recession, including the following recovery period, on their discretionary spending, and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns, including how changes in consumer behavior have affected the online retail sector for different product categories.
SCOPE
Understand consumer behavior and the online trends in Russia.
Understand which products will be the major winners and losers in the coming years.
Learn from best practice approaches outlined in the case studies of leading online retailers.
Improve market and strategic planning using highly granular, forward-looking market data. Detailed category coverage is provided, covering 25 products across eight product groups that include: Apparel, Accessories, Luggage and Leather Goods, Books, News and Stationery, Electricals and Electronics, Food and Grocery, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment.
Assess the impact of the economic recession and recovery on market growth.
REASONS TO BUY
While online retail sales in Russia will grow much faster than sales in traditional retailers, growth patterns across both channels mirror each other. Annual growth rates declined rapidly during 2007–2009 as the Russian economy was hit by the global financial crisis. The Russian economy recovered in 2010, after which, growth rates will increase in both traditional and online retail to 2016.
Growing internet penetration in the regions outside of Moscow and St. Petersburg will be the key driver of future growth in the number of internet users. Penetration rates in most of Russia’s regions lag far behind those in Moscow and St. Petersburg as a lack of infrastructure investment means high connection costs; however new investment is driving these costs down, resulting in a rise in penetration rates.
Approximately one-fifth of mobile phones in Russia in 2011 were smartphones, and this relatively low penetration will limit the potential for mobile commerce (m-commerce). Unlike in Western Europe, Russian mobile operators tend not to subsidize the cost of handsets, which means that consumers have to purchase smartphones at full price; making them too expensive for many.
The sheer size of Russia, coupled with an unreliable postal service, has created logistical difficulties for many online retailers. To get around this, leading retailers such as Ozon have launched their own courier services, and operate pick-up points around the country.
Online retailers are targeting key regional cities, whose populations are growing rapidly and are benefiting from extensive infrastructure investment, which is driving down connection costs and increasing connection speeds. However, the novelty of online shopping means that many consumers use the internet to look for products that are difficult to find locally, as opposed to in Moscow and St. Petersburg, where online retailers compete directly with local retailers on the basis of price, range, and service.
List Of Content
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 This report provides 2011 actual sales; while forecasts are provided for 2012 – 2016
1.2.2 Changes to terms used in the Canadean taxonomy
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The triangulated market sizing method
1.3.3 Industry surveys in the creation of retail market data
1.3.4 Quality control and standardized processes
2 Consumer Insight: Online Shopping Attitudes and Behaviors
2.1 Overview of the Russian Online Shopping Environment
2.1.1 Internet penetration is increasing rapidly
2.1.2 The number of fixed broadband connections is low, but growing
2.1.3 Russia has a high number of mobile phone subscriptions
2.2 Consumer Attitudes and Behavior
2.2.1 Online sales growth will continue to increase rapidly
2.2.2 Online retail accounts for a low share of total retail sales in Russia
2.2.3 Online retailers are targeting developing cities for growth
2.2.4 Online sales of Music, Video and Entertainment Software will grow quickly
2.2.5 Cash-on-delivery is a popular payment method
2.2.6 Poor postal service discourages consumers from shopping online
2.2.7 Mobile commerce’s potential is limited by the low use of smartphones
2.2.8 Few Russians use their smartphones for shopping
2.2.9 Russians are active users of social media
3 Online Channel Dynamics
3.1 The Online Channel’s Share of Total Retail Sales
3.1.1 Russian online vs. offline channel forecasts
3.1.2 Online penetration: global and regional comparisons
3.2 Channel Dynamics
3.2.1 Russian retail channel dynamics – future performance
3.2.2 Channel group share development
3.2.3 Individual channel performance
3.3 Category Dynamics
3.3.1 Online vs. offline retail sales comparison by category group, 2011
3.3.2 Online retail market dynamics by category
3.3.3 Online retail sales share by category group
3.3.4 Food and Grocery categories: market size and forecasts
3.3.5 Electrical and Electronics categories: market size and forecasts
3.3.6 Music, Video and Entertainment Software categories: market size and forecasts
3.3.7 Apparel, Accessories, Luggage and Leather Goods group categories: size and forecasts
3.3.8 Books, News and Stationery categories: market size and forecasts
3.3.9 Sports and Leisure Equipment categories: market size and forecasts
3.3.10 Furniture and Floor Coverings categories: market size and forecasts
3.3.11 Home and Garden Products categories: market size and forecasts
4 Case Studies: Leading Online Retailers in Russia
4.1 Retailer 1: Utkonos
4.1.1 Business description
4.1.2 Site experience
4.2 Retailer 2: Ozon
4.2.1 Business description
4.2.2 Site experience
4.3 Other Innovative Retailers in Russia
4.3.1 KupiVIP
4.3.2 Holodilnik
4.3.3 M.Video
5 Appendix
5.1 About Canadean
5.2 Disclaimer
List Of Table
Table 1: Russia Exchange Rate RUB–US$ (Annual Average), 2006–2011
Table 2: Canadean Retail Channel Definitions
Table 3: Canadean Retail Category Definitions
Table 4: Changes to Canadean Taxonomy
Table 5: Canadean Retail Country Coverage
Table 6: Total Internet Users and Penetration, 2006–2011
Table 7: Total Broadband Internet Subscribers and Penetration, 2006–2011
Table 8: Total Mobile Phone Subscribers and Penetration, 2006–2011
Table 9: Russian Online vs. Offline Retail Sales and Forecast (RUB billion),2006–2016
Table 10: Russian Online vs. Offline Retail Sales and Forecast (US$ billion),2006–2016
Table 11: Russian Online vs. Offline Retail Sales and Forecast (% Share), 2006–2016
Table 12: Russian Online Sales vs. Global Average
Table 13: Russian Online Sales vs. Central and Eastern Europe
Table 14: Russian Overall Retail Segmentation (RUB billion) by Channel Group, 2006–2016
Table 15: Russian Overall Retail Segmentation (RUB billion) by Channel Group, 2006–2016
Table 16: Russian Overall Retail Segmentation (US$ billion) by Channel Group, 2006–2016
Table 17: Russian Overall Retail Segmentation (%) by Channel Group, 2006–2016
Table 18: Russian Channel Retail Sales and Forecast (RUB billion) by Channel, 2006–2016
Table 19: Russian Channel Retail Sales and Forecast (US$ billion) by Channel, 2006–2016
Table 20: Russian Channel Retail Sales and Forecast (RUB billion) by Channel, 2006–2016
Table 21: Russian Channel Retail Sales (US$ million), Online vs. Offline, 2011
Table 22: Russian Online Retailers Market Dynamics by Category Group, 2006–2016
Table 23: Russian Online Retail Sales and Forecast (RUB billion) by Category Group, 2006–2016
Table 24: Russian Online Retail Sales and Forecast (US$ million) by Category Group, 2006–2016
Table 25: Russian Total and Online Retail Sales in Food and Grocery Categories (RUB billion), 2006–2016
Table 26: Russian Total and Online Retail Sales in Food and Grocery Categories (US$ million), 2006–2016
Table 27: Russian Total and Online Retail Sales in Electrical and Electronics Categories (RUB billion), 2006–2016
Table 28: Russian Total and Online Retail Sales in Electrical and Electronics Categories (US$ million), 2006–2016
Table 29: Russian Total and Online Retail Sales in Music, Video and Entertainment Software Categories (RUB million), 2006–2016
Table 30: Russian Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ million),2006–2016
Table 31: Russian Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (RUB billion), 2006–2016
Table 32: Russian Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Goods Categories (US$ million), 2006–2016
Table 33: Russian Total and Online Retail Sales in Books, News and Stationery Categories (RUB billion), 2006–2016
Table 34: Russian Total and Online Retail Sales in Books, News and Stationery Categories (US$ million), 2006–2016
Table 35: Russian Total and Online Retail Sales in Sports and Leisure Equipment Categories (RUB billion), 2006–2016
Table 36: Russian Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million), 2006–2016
Table 37: Russian Total and Online Retail Sales in Furniture and Floor Coverings Categories (RUB billion), 2006–2016
Table 38: Russian Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million), 2006–2016
Table 39: Russian Total and Online Retail Sales in Home and Garden Products Categories (RUB billion), 2006–2016
Table 40: Russian Total and Online Retail Sales in Home and Garden Products Categories (US$ million), 2006–2016
List Of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users and Penetration, 2006–2011
Figure 3: Total Fixed Broadband Internet Subscribers and Penetration, 2006–2011
Figure 4: Total Mobile Users and Penetration, 2006–2011
Figure 5: Russia Online Retail Growth vs. Total Retail Growth (%), 2007–2016
Figure 6: Online Retail Sales as a Percentage of Total Retail Sales in Select Central and Eastern European Countries (%), 2011
Figure 7: Online retailers will find key opportunities in developing regional cities
Figure 8: Russian Retail Sales by Category, Online vs. Offline (%), 2011 and 2016
Figure 9: Few Russians are interested in using their smartphones for m-commerce
Figure 10: Key Social Media Networks in Russia
Figure 11: Russian Online and Offline Retail Sales and Forecast (RUB billion), 2006–2016
Figure 12: Russian Online Sales vs. Global Average (% of Total Retail)
Figure 13: Russia Online Sales vs. Central and Eastern European Countries Average (% of Total Retail)
Figure 14: Russian Overall Retail Market Dynamics by Channel Group, 2006–2016
Figure 15: Russian Retail Sales and Forecast (RUB billion) by Channel Group, 2006–2016
Figure 16: Russian Retail Sales by Category, Online vs. Offline (%), 2011
Figure 17: Russian Online Retailers Market Dynamics by Category Group, 2006–2016
Figure 18: Russian Online Retail Sales and Forecast (US$ million) by Category Group, 2006–2016
Figure 19: Utkonos – Product Category Page
Figure 20: Utkonos – Product Page
Figure 21: Utkonos – Mobile Apps
Figure 22: Ozon – Homepage
Figure 23: Ozon – Category Page
Figure 24: Ozon – Product View
Figure 25: KupiVup – Home Page
Figure 26: Holodilnik – Product filter
Figure 27: M.Video – Overstock
