in partnership with

RUSSIA 2020
Ecommerce Country Report
RXRRU20RP

Country: RUSSIA
Capital: Moscow, 55° 45’ N, 37° 37’ E

NORTHWESTERN FAR EASTERN

CENTRAL
URALS
VOLGA
SIBERIAN
SOUTHERN

€499 I December 2020 www.retailx.net

 RESEARCH AND ANALYSIS FOR
THE RETAIL PROFESSIONAL
COUNTRY-LEVEL MARKET ANALYSIS
RetailX Country and Regional Reports provide an
overview of the state of ecommerce in more than
20 countries and regions across the world. These
reports offer an authoritative, comprehensive and
accessible view of the economic breakdown and
ecommerce trends in each territory.

RETAIL AND BRAND PERFORMANCE RANKING

Our Retail and Brand Performance Ranking
research presents an independent and unbiased
review of the performance of the continent’s best
ecommerce and multichannel retailers.

RETAILX SECTOR ANALYST REPORT

SECTOR INSIGHT AND ANALYSIS RETAILX SECTOR ANALYST REPORT LUXURY 2019
FAST FASHION INTRODUCTION
In 2017, Chinese consumers accounted for around a third of the personal luxury goods sector, Welcome to the RetailX sector analyst
representing approximately four times the value of the total domestic luxury market in China.
INTRODUCTION reports, where we combine RetailX’s
The global market for personal luxury goods is forecast to grow to €290bn by 2020. four years of in-depth company
Fast Fashion has cemented its status as the driving force within the fashion industry. performance research with analysis of
Welcome to the RetailX Sector Analyst Between 2008 and 2017, the personal luxury goods market grew from €167bn to €262bn (5.1%
The sector emerged in the late 1990s when runway creations were quickly copied and Reports, where we combine RetailX’s the sector dynamics.
CAGR, 2008-2017), pushed by these Chinese customers. Yet in July 2018, fewer than 60% of

Combining in-depth company performance research

introduced to consumers at a much cheaper price – a development enabled by cheaper four years of in-depth company per-
luxury websites offered a Chinese language version. Our reports provide the strategic and
Far Eastern supply chains. Coupled with increased internet penetration from the early formance research with analysis of the commercial context in which the best
2000s, the legacy ‘two-season-fashion’ model (AW/SS – Autumn/Winter, Spring/Summer) sector dynamics. retailers and brands perform in their
turned into ‘evergreen fashion on steroids’. The luxury sector has been relatively slow to adapt to digital when compared to other retail
Our reports outline the strategic and market sectors.
sectors. In this report, we review the digital-first startups, along with established brands, that
So entrenched has the Fast Fashion approach become that even luxury and higher-end commercial context in which the best
are now embracing digital. We have two reports each year: The first
fashion brands have developed monthly product “drops” (high-profile limited releases retailers and brands perform in their is our Analyst Report, focusing upon
market sectors. the current performance and sector
of products) as a marketing hook, rather than their more sedate biannual seasons.
SHARELINES: dynamics. The second is our Strategic
Fashion retailers increasingly include a limited range of Fast Fashion products within their Report, which looks through a strategic
Chinese consumers spend one in every three dollars spent on personal luxury goods globally
overall mix fast items and seasonal continuity. This is a marketing necessity to entice Let us know of sectors you would like to planning lens at the 2-5 year outlook –
customers to visit stores or websites, even if those products are sold at break-even or a see us cover: research@retailx.net Europe accounts for 33% of the global personal luxury market, yet only 19% of total luxury showing glimpses of the future in the

with analysis of sector dynamics, our Sector Reports

loss. This is not to be confused with retailers that have made Fast Fashion a profitable sales are attributed to Europeans! current practice of the best.
business approach at scale. The full schedule of 2019 Sector
The pre-owned segment is a growing aspect of the luxury market
Reports can be seen at retailx.net/
SHARELINES Pureplay luxury retailers’ share of all online luxury sales has declined to around 25% reports

The advent of social media has dispersed and democratised celebrity Let us know of sectors you’d like to see
us cover – research@retailx.net
Consumer concerns about sustainability do not appear to have slowed the
market’s growth
The Japanese automotive industry’s Just In Time (JIT) manufacturing method OUR ANALYST
influenced Fast Fashion TL;DR
THOMAS ANDERSSON
Zara is a frontrunner in the Fast Fashion industry The internet abbrebviation ‘TL;DR’ means ‘Too Long; Didn’t Read’. In that spirit, here are some

enable retailers to gain a better understanding of the

From luxury to value brands, Fast Fashion has permeated the industry consideration points from this report: Thomas is a retail sector analyst with
Fast Fashion’s growth was aided by several market drivers, while its continued
over a decade of experience starting and
growth is challenged by a mix of inhibitors • The luxury sector grew 5.1% CAGR (Compound • Luxury brand owners have exploited their
divesting a multichannel retail business.
Annual Growth Rate) between 2008 and 2017 financial power (Richmond’s acquisition of He is a grants evaluator for Vinnova, a
Swedish R&D government agency.
TL;DR (€167bn to €262bn) YNAP) and flexed IP (24sevres.com - LVMH)
thomas@retailx.net.
The internet abbreviation ‘TL;DR’ means ‘Too Long; Didn’t Read’. In that spirit, here • The personal luxury goods market is predicted • We profile the luxury groups (the Multibrands)
are some consideration points from this report:
to grow to €290bn by 2020 MARTIN SHAW
•
THOMAS ANDERSSON and provide dashboards for their trading fascias
Fast Fashion’s growth has been due to them to meet customer demand. thomas@retailx.net HEAD OF RESEARCH,
• Chinese consumers have become a major force

current state of key industry segments.

market drivers, including Just In Time Inditex’s produced a limited volume
manufacturing process, globalisation, of different lines to create a high
low-cost supply chains, rising Internet throughput of different garments.
penetration, increasing household Inditex’s interpretation – Fast Fashion –
disposable income, historically low revolutionised the fashion industry
• Online
interest rates, and the near-shoring of shopping’s growth in the
supply chains
2000s, low-cost manufacturing and
Thomas is a retail sector analyst
with more than a decade of
experience starting and divesting a multichannel
retail business. He is a grants evaluator for
Vinnova, a Swedish R&D government agency.
MARTIN SHAW
martin@retailx.net
• Our 23 companies offer four languages each RETAILX
and now account for one in every three luxury
on average, with English, French, German Martin devises the scope and methods
purchases globally. While the emergence of of RetailX’s research.
and Chinese the most frequent
the online channel has increased the reach martin@retailx.net.
• Our semantic analysis shows the growing use
and growth prospects of luxury brands, it
CEO: Ian Jindal

• sustainability
Martin devises the scope and of digital retail terms in the listed companies’
Market inhibitors include concerns about near-shoring combined to make Fast methods of RetailX’s research. has also increased costs HEAD OF RESEARCH: Martin Shaw
and labour conditions, Fashion mainstream Annual Reports, 2008 to 2017 SENIOR ANALYST: Thomas Andersson
• While Chinese luxury consumers have driven
• have
CEO: Ian Jindal
and supply chain exposure to political Sustainability and labour concerns Head of Research: Martin Shaw COMMERCIAL DIRECTOR: Andy James
uncertainty on free trade and tariffs growth in the sector, it is prone to volatility • The circular economy – second-hand or
not to date had a major impact Senior Analyst: Thomas Andersson DESIGN: Marzena Zychowicz

• around
Benetton and Inditex adopted JIT
the same time but interpreted
the processes differently. Benetton
produced large volumes of a narrow
set of SKUs in raw form and dyed
on Fast Fashion retailers, nor overall
customer demand. However, Fast
Fashion retailers now sell ‘sustainable
collections’ to cater to this growing
consumer preference.
Editors: Chloe Rigby, Jonathan Wright
Commercial Director: Andy James
based on domestic and international events ‘recommerce’ – is a new opportunity in ADDRESS: RetailX, 123 Cannon Street, London,
EC4N 5AU
Design: Marzena Zychowicz (a Chinese government crackdown on graft; luxury, covering items from luxury cars to
Address: RetailX, 123 Cannon Street
© 2019 RetailX Limited
London, EC4N 5AU the cooling of US-Sino trade relations) vintage watches
© 2019 RetailX Limited

RXS03: Published in London, © 2019 RetailX Limited. www.retailx.net Page 1 of 24

RXS004: Published in London, © 2019 RetailX Limited, www.retailx.net Page 1 of 29

NEWS AND INSIGHT

Stay informed on the fast-moving ecommerce
sector with the latest news, insight and analysis
from our expert team of writers.

Access all of our analysis, reports and the latest news at

internetretailing.net edelivery.net retailx.net

 CONTENTS

INTRODUCTION CONTENTS
Market context: ecommerce in Russia 4
Market overview 6
Partner perspective: Asendia 9
Digital overview 10
Ecommerce overview 12
Welcome to the Russia Ecommerce Country The Russian consumer 14
Report for 2020, the latest in our series of Online shops 16
reports analysing key ecommerce markets Coronavirus tracker 17
around the world. End matter and references 18
It offers a concise yet comprehensive picture Conclusion19
of a developing market where there are huge
opportunities, yet potential difficulties too.
At a geopolitical level, the annexation of Crimea has strained
international relations, while condemnation of this action from
the UK and EU has soured the rhetoric towards European
businesses. There are currently economic sanctions in place, yet
FIGURES
these are specific and targeted. In the UK, the Department of
Country profile/Age structure/Population 6
International Trade stresses that legitimate business relations are
Russia’s GDP/GDP growth  7
unaffected. Furthermore, Russia ranks 28th in the World Bank
Internet usage/Device usage for online 10
‘Doing Business’ rankings [see page 7], which is higher than
Social media usage/Internet Inclusivity Index 11
India, China and Brazil.
Russia’s B2C market 12
In addition, the Russian market is of particular interest because
B2C ecommerce sales as percentage of GDP 12
Russian consumers value international brands, often preferring
Average online spending per e-shopper/Payment method preference 12
them to domestic brands. There are huge opportunities for those
Share of online population shopping online 12
retailers and brands that can connect with Russia’s growing
Share of e-wallet users paying for goods and services online 13
middle class. This is not to understate the difficulties of doing
Factors influencing ecommerce market growth 13
business in the country but with appropriate planning and
Most online purchased category 13
partnerships, there is a path for commerce.
Ecommerce delivery methods 13
We hope that this report’s up-to-date, factual and commercial
Internet users by age 14
information will help in the growth of commerce. Over the
Decisive factors for customers making a purchase 14
coming months, we will augment our findings with specific
Attitudes towards online shopping 14
webinars and case studies. As we turn to research for the 2021
Problems faced by customers using Russian post delivery 15
report, please do share your feedback and suggest areas for
Shopping enthusiasm among Russian consumers, 2019 15
further investigation and analysis.
Pick-up point delivery issues/Courier delivery issues 15
Ian Jindal, CEO, RetailX Parcel pick-up services 15
Main factors affecting the choice of logistic provider 16
Overall satisfaction of online stores with logistic company services 16
Most frequent issues with logistics companies 16
Change in ecommerce purchase frequency because of Covid 17
Share of Russians who discovered new online stores  17
Loyalty to stores discovered during self-isolation 17

© 2020 retailx.net, distributed by InternetRetailing.net December 2020 3

 MARKET CONTEXT
RUSSIA: READY FOR
AN ECOMMERCE
REVOLUTION
Still a vast land of extreme wealth and also extreme
poverty, it’s the rise of a large and young middle class
that is changing society in Russia. Having grown up with
the internet, these are the shoppers who are impatiently
waiting for the country’s creaking infrastructure to catch up
Russia has a rich and fascinating history marked out by numerous
economic upheavals that would have broken lesser nations.
While rarely thought of as a pioneer in global trade and more
typically viewed as being insular and mysterious, Russia’s very
founding by the Russ Vikings more than a 1,000 years ago was
all because of trade.
The landmass that is modern-day Russia is criss-crossed by
rivers, which formed a far-reaching watery highway between
Scandinavia and the Middle and Far East. A turn-off from the Silk
Road brought goods from all over the world to the frozen North.
Yet much of this open and trade-led heritage was lost over the
centuries due to Russia’s volatile history. Pre-revolution, it was
a vast, although relatively poor, country with a huge divide in
wealth. Post-revolution and post-WW2, it emerged as a global
superpower, with an economy to match.
However, in 1990, Communist collapsed and the economy
contracted by 45% – an almost unprecedented amount and one
that should have seen the country ruined beyond recovery. To
put it in context, the cost of the coronavirus pandemic is expected
to see a global economic contraction of 3.5%.
Yet Russia has spent the past three decades rebuilding its
economy and has, in recent years, returned to being one of the
richest and most powerful countries in the world. As of 2019,
its GDP stood at some $1.68tn, according to the International
Monetary Fund (IMF), making it the 11th largest economy in
the world.
Much of the country’s new-found wealth has come from oil
and gas, of which is has enormous reserves that were largely
untapped by the former Communist regime. Much of this wealth
has ended up in the hands of a select few – Russia boasts
some 70 officially listed billionaires – while around 13% of the
4 December 2020
population of 144m live in poverty.
Among those not in these two extremes, there is a growing
middle class emerging in Russia and, despite the population set
to decline between now and 2050 –when it is projected to dip
to 135m – these newly minted, aspirational spenders are driving
exciting ecommerce growth across Russia.
DIGITAL REVOLUTION
When you consider that Russia only started modernising its
collapsed economy around the time the internet was taking off
in the West, its uptake of the technology has been impressive. By
2019, the former Soviet Union had 83% of its population using
the internet, while projections for the end of 2020 put it as high
as 85%. This would put the country on a par with the US, UK
and other advanced digital economies.
Three quarters (76%) of these web users currently use desktop,
according to Statcounter data, with just 23% using smartphones.
However, with a population that is increasingly aged 25 to 54
and with increasing smartphone usage a certainty across almost
all countries, this proportion is likely to shift considerably in
the coming years. As has been found globally, the pandemic’s
impact of forcing more consumers to shop online is likely to drive
increased mobile use in Russia as much as it is elsewhere – with
convenience being the key driver.
ECOMMERCE REVOLUTION
This increasing reach of the web across a burgeoning young,
increasingly affluent Russian middle class has seen the country’s
business to consumer (B2C) ecommerce market grow around
20% every year since 2016. That figure is expected to be 26%
for 2020, which would mean B2C revenues of $33.20bn –
2.17% of the country’s GDP.
46% of the population is expected to have shopped online
in 2020, a figure that’s grown steadily from 21% in 2015. The
coronavirus pandemic has, as it has everywhere, spurred
ecommerce growth in 2020, with average spend per online
shopper hitting $494.70 this year after bumping along at
around $420 since 2015.
To put this in context, the average US online shopper spends
around $2,773. So while the Russian ecommerce market is on
the up, it still has a long way to go before it hits the levels seen
in the most mature online markets.
This new-found impetus for online shopping is likely to
continue in Russia, just as it will elsewhere in the world, as more
© 2020 retailx.net, distributed by InternetRetailing.net

Copyright © Boris Stroujko/Shutterstock
While the wealth of a few oligarchs is flaunted in a shiny new vision of Moscow, it’s the growth of a large middle class that is driving ecommerce
shoppers become aware of the benefits of online commerce.
According to data, 11% of growth in 2020 has been driven
by pandemic-based self-isolation. Looking ahead to 2021,
increased frequency of purchasing and a switch to distanced
working and education are going to continue this habit. An
expected 11% rise in new ecommerce customers will also drive
driving this.
Like most other ecommerce markets, Russian consumers are
increasingly buying clothing, consumer electronics and health,
beauty and body care products online. Food and drink, however,
is also starting to see a rise in popularity, with 21% of shoppers in
2020 grocery shopping online and 16% of consumers planning
to increase their online grocery purchasing in the coming years.
POSTAL REVOLUTION
68% of Russian consumers want free delivery from online stores
in addition to sales and discounts, while 48% want fast delivery.
However, a reliance on the Russian postal service is one of the
© 2020 retailx.net, distributed by InternetRetailing.net
MARKET CONTEXT
biggest hurdles that Russian ecommerce expansion faces.
Inconvenient working hours, lack of delivery notifications, lost
packages and rude staff are all cited by Russian shoppers as
problems they regularly face when looking to interact with the
postal system. Similar issues are also noted by shoppers, albeit
in smaller numbers, around courier services.
Delivery, it seems, is very much the weakest link in the
development of the Russian ecommerce market right now.
Perhaps more than any other factor, it’s one that marks out the
market as one that still has a long way to go to reach maturity.
Yet widespread internet availability and a willingness to
use it are both there. While the infrastructure and mindset to
deliver, both physically and metaphorically, perhaps lack the
Russ Viking’s dedication to open trade, there is a clear demand
and expectation for Russia to be less like its Communist market
of old and more like the rest of the world. n
December 2020 5
 MARKET OVERVIEW

MARKET OVERVIEW AREA OF RUSSIA:

17,075,000 KM2

CAPITAL:
AGE STRUCTURE OF RUSSIA’S MOSCOW
TOTAL POPULATION
CURRENCY:
RUBLE (RUB)

14.66% OFFICIAL LANGUAGE:

RUSSIAN
14.51%
2020 NATIONALITY:
65+ RUSSIAN
55-64
GOVERNMENT:
25-54 FEDERAL SEMI-PRESIDENTIAL
44.21%
9.41%
15-24 CONSTITUTIONAL REPUBLIC
0-14
STANDARD VAT:
17.21% SOURCE: INDEXMUNDI.COM
20%

RUSSIA’S TOTAL POPULATION, IN MILLIONS, 2015-2050 (F)

146
144.49 144.37
0.10% -0.07%
144.09 143.34
-1.23%
141.13
145.39 145.13
POPULATION AND PERCENTAGE CHANGE

-1.54%
0.71% -0.18%
142
144.34 144.47
0.17% -0.01%
139.03
-1.49%
137.29
-1.25%
138
135.82
-1.07%

134
2015 2017 2019 2025 (F) 2030 (F) 2035 (F) 2040 (F) 2045 (F) 2050 (F)
2016 2018 2020 (F)

SOURCE: WORLDOMETERS

6 December 2020 © 2020 retailx.net, distributed by InternetRetailing.net

 MARKET OVERVIEW

RUSSIA’S GDP, IN TN RUB, 2015-2020 (F) GDP GROWTH, RUB, 2016-2020 (F)

115.09 6.3%
108.32
102.19
6.0%
92.05
83.10 86.01
11.0%

7.0%

3.5%

2015 2016 2017 2018 2019 2020 (F) 2016 2017 2018 2019 2020 (F)

RUSSIA’S GDP, IN $TN USD, 2015-2020 (F) GDP GROWTH, USD, 2016-2020 (F)

$1.68 3.3%
$1.63
$1.56 $1.53 4.2%
$1.49
$1.34 16.2%

-9.0%

-10.1%

2015 2016 2017 2018 2019 2020 (F) 2016 2017 2018 2019 2020 (F)

SOURCE: QUANDL, INTERNATIONAL MONETARY FUND

INDICES DEFINITION GLOBAL RANK

LOGISTICS PERFORMANCE
LPI measures performance along the logistics supply chain within a country 75 out of 160
INDEX (LPI)

EASE OF DOING BUSINESS INDEX A high Ease of Doing Business ranking means the regulatory environment is more conducive to the
28 out of 190
starting and operation of a local firm

E-GOVERNMENT The E-government Development Index measures the willingness and capacity of national administrations
36 out of 193
DEVELOPMENT INDEX to use information and communication technologies in order to deliver public services

SOURCE: WORLDBANK, UNITED NATIONS KEY: Top quartile Second quartile Third quartile Bottom quartile

© 2020 retailx.net, distributed by InternetRetailing.net December 2020 7

Customs Report by
Ecommerce Foundation and Asendia

Everything you need

to know about customs
IN PARTNERSHIP WITH

Q&A:
CHAIGNEAU BENOIT
PARTNERSHIP MANAGER,
ASENDIA
With 17 years of experience
in the domestic and international
mail and parcel industry, Benoit has skills in various
areas, mainly as a strategic account manager and
sales manager. He joined Asendia in 2013 and
currently develops strategic partnerships with postal
operators worldwide as partnership manager at
Asendia Headquarters
What are the main characteristics you see in Russia
concerning ecommerce market size?
Russian consumers started shopping online quite late compared
to other EU markets. This was for various reasons that includes
a general lack of trust and a preference for payment in cash
rather than online payments.
In recent years, things have changed and the volume of
the Russian ecommerce market has been constantly growing.
It reached 1,620 trillion rubles (US$24.9bn) in 2019, which
represents a 25% growth from 2018. The volume of orders
reached 425m parcels (+41% over 2018), with a decreasing
average order value.
What do Russian shoppers buy from online stores?
Russian consumers are looking for low value goods that
come mainly from China, which represent the bulk of items
purchased abroad, although only 53% of the cross-border
revenue.
The search for a larger choice of brands and higher quality
goods are also reasons for Russians to shop online from stores
located abroad. Clothing, footwear and accessories are the
“Russian shoppers’ favourite
delivery option to the post office.
This is a service that retailers
should have in mind when
choosing a logistics provider”
© 2020 RetailX and Global Retail Research BV
PARTNER PERSPECTIVE
best sellers when shopping on foreign ecommerce sites.
Ecommerce adoption is highest among urban consumers,
with 92% of residents in the capital city, Moscow, buying
online, compared to 84% in rural areas. However, the share
of rural consumers shopping online is increasing quickly and is
already up from 73% in 2012.
It’s no surprise that the Covid-19 pandemic has accelerated
the trend and that during 2020, shopping online has become
part of daily life for many.
What are the main expectations of shopping online?
For 70% of Russian consumers shopping online, the three
priorities are low prices, fast delivery and a good selection.
Delivery is essential for online retailers. 74% of consumers
believe that getting the product as fast as possible is central to
the delivery experience.
Russia is among top three countries where residents want
the products to be delivered in a specific time slot (12%) or in
a few hours (33%).
At Asendia, we have worked closely with our partner to
answer the shoppers’ expectations in terms of fast delivery
and make their experience seamless.
What are the most common delivery types you see in
Russia? How will this trend change in the future?
Russian shoppers’ favourite delivery option is to the post office.
This is a service that retailers should have in mind when choosing
a logistics provider to address this market. PUDO (Pickup drop
off) points are therefore a key success factor when selling online
in Russia.
Asendia is one of the world’s leaders in international
ecommerce and mail. Combining the expertise of its founding
companies, La Poste and Swiss Post, Asendia brings together
a wealth of international and local know-how
www.asendia.com
December 2020 9
 DIGITAL OVERVIEW

DIGITAL OVERVIEW

INTERNET USAGE IN RUSSIA, 2015-2020 (F)

100

75
PERCENTAGE OF POPULATION

83% 85%
81%
70% 73% 76%
50

25

0
2015 2016 2017 2018 2019 2020 (F)

SOURCE: WORLDBANK

DEVICE USAGE FOR ONLINE

DESKTOP
76%

SMARTPHONE
23%

TABLET
1%
SOURCE: STATCOUNTER

10 December 2020 © 2020 RetailX and Global Retail Research BV

 DIGITAL OVERVIEW

SOCIAL MEDIA USAGE IN RUSSIA

PINTEREST VKONTAKTE
TWITTER 21% 26%
8%

Vkontakte (VK) is a Russian online social media

INSTAGRAM and networking service available in more than
85 languages. The majority of its users are in
5% the Commonwealth of Independent States (CIS),

YOUTUBE
making it one of the most popular social
networking sites in Russia, Belarus, Kazakhstan,

16% FACEBOOK Estonia, Kyrgyzstan, Moldova and Latvia. The

platform has several features, including public
23% and private messaging, public pages, events,
image sharing and games.
According to SimilarWeb, VK is the 14th most
visited website in the world.
SOURCE: STATCOUNTER

INTERNET INCLUSIVITY INDEX

The overall Internet Inclusivity Ranking is based on how a country scores in the following categories (defined below):
availability, affordability, relevance and readiness. Collating the category rankings in the right-hand column gives
a country’s overall Internet Inclusivity Ranking. Russia is ranked 26th in the Index.

INDICES DEFINITION GLOBAL RANK

AVAILABILITY Quality and breadth of available infrastructure required for access and levels of internet usage 41 out of 100

AFFORDABILITY Cost of access relative to income and the level of competition in the internet marketplace 12 out of 100

RELEVANCE Existence and extent of local language content and relevant content 17 out of 100

READINESS Capacity to access the internet, including skills, cultural acceptance and supporting policy 59 out of 160

OVERALL INTERNET INCLUSIVE INDEX Benchmark based on internet availability, affordability, relevance and the readiness of people to use it 26 out of 100

KEY: Good Poor

SOURCE: THE ECONOMIST INTELLIGENCE UNIT

© 2020 RetailX and Global Retail Research BV December 2020 11

 ECOMMERCE OVERVIEW

ECOMMERCE OVERVIEW
RUSSIA’S B2C, IN LCU TN, B2C, CONVERTED TO $BN USD, B2C ECOMMERCE
2015-2020 (F) 2015-2020 (F) SALES AS
PERCENTAGE OF GDP
47.1% 25.9%
2.50 33.20 YEAR E-GDP
27.4%
2015 0.85%
30.8% 26.36
14.1%
1.70 29.0% 2016 1.05%
21.5% 20.69
18.9% 10.1% 18.14 2017 1.16%
1.30
26.8%
1.07 14.06
0.90 12.77 2018 1.27%
0.71
2019 1.57%

2020 (F) 2.17%

2015 2016 2017 2018 2019 2020 (F) 2015 2016 2017 2018 2019 2020 (F)

SOURCE: QUANDL, IMF,

SOURCE: STATISTA, DATA INSIGHT RETAILX ANALYSIS

AVERAGE ONLINE SPENDING PER PAYMENT METHOD SHARE OF THE ONLINE

E-SHOPPER, $ USD PREFERENCE, 2019 POPULATION SHOPPING ONLINE
494.70 2015 21%
BY CARD
445.44 57%
422.06 418.52
2016 25%
389.63 387.18
PAYPAL, YANDEX.MONEY
37%
2017 30%

BANK MOBILE APP

36% 2018 37%

ONLINE BANKING 2019 41%

29%

SMS 2020 (F) 46%

2015 2016 2017 2018 2019 2020 (F) 25%

SOURCE: RETAILX ANALYSIS SOURCE: DATA INSIGHT, PAYPAL SOURCE: EUROSTAT, RETAILX ANALYSIS

12 December 2020 © 2020 RetailX and Global Retail Research BV

 ECOMMERCE OVERVIEW

SHARE OF E-WALLET USERS PAYING FOR GOODS FACTORS INFLUENCING ECOMMERCE

AND SERVICES ONLINE, BY PRODUCT MARKET GROWTH
ONLINE SHOPPING 34.1% n 2020 n 2021-2024

MOBILE SERVICE PROVIDERS 32.3% INCREASED FREQUENCY 10%

MONEY TRANSFERS FROM OF PURCHASES 39%
20.4%
RUSSIA AND ABROAD
PUBLIC TRANSPORT CARDS 17.7% 7%
SWITCH TO DISTANCE
UTILITIES AND HOUSING WORK/EDUCATION 17%
16.9%
SERVICES
CINEMA AND CONCERT TICKETS 16.9%
6%
INCREASED
FOOD DELIVERY 16.5% E-GROCERY SALES 16%

ONLINE GAMES 15.8%

4%
NEW CUSTOMERS
TAXI 15.2% 11%

TRAFFIC FINES AND TAXES 12.8%

PURCHASES DURING 11%
LOAN REPAYMENTS 12.3% SELF-ISOLATION 2%

HOTEL BOOKING 9.0%

SOURCE: STATISTA, DATA INSIGHT (RU), MINISTRY OF ECONOMIC
SOURCE: STATISTA, MEDIASCOPE, YANDEX MONEY DEVELOPMENT OF THE RUSSIAN FEDERATION

MOST ONLINE PURCHASED CATEGORY, 2020 ECOMMERCE DELIVERY METHODS,

2016 – 2019
CLOTHING 43%
CONSUMER ELECTRONICS (TV, n 2016 n 2018 n 2019
41%
SMARTPHONES, ETC)
COSMETICS AND BODY CARE 35% 54%
ONLINE STORE’S 40%
DRUGSTORE HEALTH PRODUCTS 31% OWN CAPACITIES
49%
HOUSEHOLD APPLIANCES 29%

SHOES 29% 26%

RUSSIAN POST
26%
TOYS AND BABY PRODUCTS 24%
20%
BAGS & ACCESSORIES 22%
BOOKS, MOVIES, MUSIC AND 5%
21%
GAMES (EXCLUDING DOWNLOADS)
POSTAMATS 17%
FOOD AND DRINK 21%
18%
STATIONERY AND HOBBY SUPPLIES 18%

DIY, GARDEN AND PET PRODUCTS 16% 16%

COURIER DELIVERY 17%
SPORTS AND OUTDOOR PRODUCTS 15%
11%
SOURCE: STATISTA, STATISTA GLOBAL CONSUMER SURVEY
QUESTION: WHICH OF THESE ITEMS HAVE YOU BOUGHT ONLINE IN THE PAST 12 MONTHS? SOURCE: STATISTA, DATA INSIGHT (RU)

© 2020 RetailX and Global Retail Research BV December 2020 13

 THE RUSSIAN CONSUMER

THE RUSSIAN CONSUMER

INTERNET USERS DECISIVE FACTORS FOR CUSTOMERS MAKING
BY AGE AN ONLINE PURCHASE, 2020
n VERY IMPORTANT n MORE OR LESS IMPORTANT
69%
55-64 SALES AND DISCOUNTS 26%
15.9%
68%
FREE DELIVERY 27%
45-54 62%
18.9% CONVENIENT PAYMENT METHODS 29%
61%
GOOD SELECTION OF PRODUCTS ON THE WEBSITE/IN THE APP 33%
35-44 54%
FAST AND CONVENIENT PAYMENT 37%
26.5%
48%
FAST DELIVERY 43%
48%
PRODUCT REVIEWS SORTED BY RELEVANCE 41%
25-34 47%
HIGH QUALITY PRODUCT IMAGES/IMAGE GALLERY 41%
27.1%
27%
EASY-TO-USE MOBILE APP 46%
25%
RECOMMENDATIONS BASED ON MY PURCHASE HISTORY 50%
24%
18-24 PRODUCT VIDEOS 51%
11.5% 22%
WEBSITE IS OPTOMISED FOR MY MOBILE DEVICE 47%

SOURCE: STATISTA, CRITEO

SOURCE: STATISTA QUESTION: HOW IMPORTANT ARE THE FOLLOWING FACTORS TO YOU WHEN MAKING A DECISION TO MAKE A PURCHASE
ON THE RETAILER’S OR BRAND’S WEB PAGE?

ATTITUDES TOWARDS ONLINE SHOPPING, 2020

WHEN I PLAN A MAJOR PURCHASE, I ALWAYS DO SOME RESEARCH ON THE INTERNET FIRST 68%

CUSTOMER REVIEWS ON THE INTERNET ARE VERY HELPFUL 67%

I PREFER TO USE MY SMARTPHONE OR TABLET TO RESEARCH 37%
PRODUCTS AND TO MAKE MAJOR NEW PURCHASES
I WANT TO SEE AN ITEM BEFORE I BUY IT 34%
I USUALLY MANAGE HABITUAL / RECURRENT ORDERS 23%
DIRECTLY VIA MY SMARTPHONE OR TABLET
WHEN I BUY AN ITEM, I WANT TO HOLD IT IN MY HAND THE SAME DAY 20%

I MISS THE SHOPPING EXPERIENCE WHEN I SHOP ONLINE 17%

WHEN I ORDER AN ITEM, I PREFER EXPRESS SHIPPING 14%

SOMETIMES I DELIBERATELY ORDER MORE ITEMS THAN I WANT TO KEEP 7%

SOURCE: STATISTA, STATISTA GLOBAL CONSUMER SURVEY

QUESTION: WHICH OF THESE STATEMENTS ABOUT ONLINE SHOPPING DO YOU AGREE WITH?

14 December 2020 © 2020 RetailX and Global Retail Research BV

 THE RUSSIAN CONSUMER

SHOPPING ENTHUSIASM AMONG

PROBLEMS FACED BY CUSTOMERS USING RUSSIAN CONSUMERS, 2019
RUSSIAN POST DELIVERY, 2019
YES, I ENJOY TRADITIONAL SHOPPING AND
QUEUE 26%
CAN GO TO A STORE EVEN IF I DO NOT NEED 30%
ANYTHING IN PARTICULAR TO BUY

YES, I ENJOY TRADITIONAL SHOPPING, BUT

OTHER 23% I GO TO A STORE ONLY IF I NEED 44%
SOMETHING IN PARTICULAR TO BUY
INCONVENIENT WORKING HOURS 15% NO, I DO NOT ENJOY TRADITIONAL SHOPPING
BUT I WILL GO TO A STORE IF I NEED 24%
TO BUY SOMETHING
DID NOT RECEIVE DELIVERY NOTIFICATION 10%
NO, I DO NOT ENJOY TRADITIONAL SHOPPING
AND I WOULD PREFER TO BUY GOODS ONLINE, 2%
INCONVENIENT LOCATION 9% OR ASK MY FRIENDS TO BUY THEM FOR ME

DIFFICULT TO ANSWER 9% SOURCE: STATISTA, DELOITTE

POST OFFICE LOST MY PACKAGE 5%

IMPOLITE STAFF 3%
CUSTOMER SURVEY ON COURIER
DELIVERY ISSUES, 2019
SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML
DIFFICULT TO ANSWER 10%

CUSTOMERS SURVEY ON PICK-UP COURIER DID NOT CALL BEFORE DELIVERY 9%

POINT DELIVERY ISSUES, 2019 COURIER COULD NOT FIND THE ADDRESS 6%

INCONVENIENT LOCATION 16% DIFFICULTIES WITH PAYMENT 6%

IMPOLITE SERVICE 5%
INCONVENIENT WORKING HOURS 15%
WRONG GOODS WERE DELIVERED 4%
GOODS WERE DAMAGED 12%
SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML

LONG QUEUES 10%

DID NOT RECEIEVE NOTIFICATION 8% CUSTOMERS SURVEY ON PARCEL

PICK-UP AUTOMAT SERVICES, 2019
DIFFICULT TO ANSWER 8%
THE FACILITY WAS CLOSED 3%

IMPOLITE STAFF 4% DID NOT RECEIVE DELIVERY NOTIFICATION 6%

PICK-UP POINT WAS CLOSED GOODS WERE DAMAGED 9%

2%
DURING INDICATED WORKING TIME
TECHNICAL PROBLEMS WITH PACKSTATION 10%
CASHIER DID NOT HAVE THE CHANGE 1%
DIFFICULT TO ANSWER 24%
SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML
SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO; ATLAS, DPD, BOXBERRY, IML

© 2020 RetailX and Global Retail Research BV December 2020 15

 ONLINE SHOPS

ONLINE SHOPS OVERALL SATISFACTION OF ONLINE STORES

WITH LOGISTIC COMPANY SERVICES, 2019
195

MAIN FACTORS AFFECTING THE CHOICE OF

NUMBER OF RESPONSES
LOGISTIC PROVIDER BY RUSSIAN ONLINE
SHOPS, 2019 83
109

COST OF LOGISTIC SERVICE 69%

GEOGRAPHY OF DELIVERIES 57%

ABSOLUTELY SATISFIED RATHER SATISFIED AVERAGE

CASH ON DELIVERY 33%

NUMBER OF RESPONSES

TRANSPARENT PRICING 32% 40

18
LOGISTIC PARTNER’S CLEARLY
REGULATED WORK PROCESS 23% RATHER UNSATISFIED ABSOLUTELY UNSATISFIED

SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML
SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML

MOST FREQUENT ISSUES OF ONLINE STORES

WITH LOGISTIC COMPANIES, 2019
19 19 17 11 9
NUMBER OF RESPONSES

8 8

COMMUNICATION PROBLEMS WITH BAD COURIER SERVICE UNCLEAR PRICING FREQUENT DAMAGE OR BAD COMMUNICATION DIFFICULTIES WITH
PROBLEMS PERSONAL ACCOUNT AND UNRELIABLE LOSS OF GOODS WITH CUSTOMERS MONEY TRANSFERS
TIMEFRAME

7 7
NUMBER OF RESPONSES

6 6 5
4

TOO LONG DELIVERY RESPONSIBILITY PROBLEMS WITH IT POORLY ORGANISED HIGH PRICES SLOW PROCESSES
DISCLAIMER SYSTEM INTEGRATION SYSTEM OF ORDER AND BUREAUCRACIES
COLLECTION

SOURCE: STATISTA, DATA INSIGHT (RU), ARVATO, ATLAS, DPD, BOXBERRY, IML

16 December 2020 © 2020 RetailX and Global Retail Research BV

 CORONAVIRUS

CORONAVIRUS SHARE OF RUSSIANS WHO DISCOVERED

NEW ONLINE STORES DURING THE SELF-
ISOLATION PERIOD, 2020
CHANGE IN ECOMMERCE PURCHASE FREQUENCY
DUE TO THE CORONAVIRUS OUTBREAK, 2020
FOOD STORES/ONLINE
SUPERMARKETS
39%
LESS FREQUENTLY MORE
19% FREQUENTLY
27%

ONLINE VERSIONS OF THE

PHYSICAL STORES WHERE
I USUALLY BUY GOODS
38%

I RARELY OR NEVER NO CHANGE

DO THIS ACTIVITY 40%
14%

SOURCE: STATISTA, IPSOS

CHANGE TO PURCHASE PRODUCTS ONLINE NORMALLY BOUGHT IN-STORE DUE TO COVID-19, 15 MARCH 2020
STORES OFFERING VARIOUS
CATEGORIES OF GOODS
30%
RUSSIANS’ LOYALTY TO THOSE E-STORES
DISCOVERED DURING SELF-ISOLATION,
BY AGE GROUP, 2020
GENERATION Z 92%

BRANDS SELLING THEIR GOODS

DIRECTLY TO CONSUMERS
MILLENNIALS 91% 27%

GENERATION X 90%

BOOMERS AND SILENTS 80%

SMALL RETAILERS THAT
I DID NOT KNOW BEFORE
21%
TOTAL 89%

SOURCE: STATISTA, CRITEO, ADINDEX

QUESTION: WHAT IS THE PROBABILITY THAT YOU WILL CONTINUE TO BUY IN ONE OF THE ONLINE STORES SOURCE: STATISTA, CRITEO, ADINDEX
YOU DISCOVERED DURING THE SELF-ISOLATION?

© 2020 RetailX and Global Retail Research BV December 2020 17

 END MATTER & REFERENCE
RUSSIA REPORT DATA SOURCES
To supplement our own research in our analysis for the Russia 2020 Ecommerce Country Report,
we drew on these sources. While each one is referenced next to the chart or graphic they are
used in, for transparency, here are all the links:
MARKET OVERVIEW
AGE STRUCTURE: www.indexmundi.com/russia/age_structure.html
GDP: www.quandl.com/data/ODA/RUS_NGDP-Russia-GDP-at-Current-Prices-
LCU-Billions
POPULATION: www.worldometers.info/world-population/russia-population/
LOGISTICS PERFORMANCE INDEX: https://lpi.worldbank.org/
EASE OF DOING BUSINESS INDEX: www.doingbusiness.org/en/rankings
E-GOVERNMENT DEVELOPMENT INDEX: www.un.org/development/desa/
publications/publication/2020-united-nations-e-government-survey
DIGITAL OVERVIEW
DEVICE USAGE FOR ONLINE: https://gs.statcounter.com/platform-market-share/
desktop-mobile-tablet/russian-federation
SOCIAL MEDIA USAGE:
https://gs.statcounter.com/social-media-stats/all/russian-federation
INCLUSIVE INTERNET INDEX: https://theinclusiveinternet.eiu.com/
ECOMMERCE OVERVIEW
B2C: http://datainsight.ru/sites/default/files/DI_Ecommerce%202018.pdf
PAYMENT METHOD PREFERENCE:
http://datainsight.ru/sites/default/files/PayPalDataInsight%20study_2018.pdf
FACTORS INFLUENCING ECOMMERCE MARKET GROWTH: www.statista.com/
statistics/1140748/russia-key-factors-of-e-commerce-market-growth/
SHARE OF E-WALLET USERS:
www.statista.com/statistics/1072645/goods-and-services-paid-with-e-wallets-
russia/
MOST PURCHASED ONLINE CATEGORY:
www.statista.com/forecasts/1002822/online-purchases-by-category-in-russia
ECOMMERCE DELIVERY METHODS:
www.statista.com/statistics/1013002/russian-e-commerce-delivery-methods/
18 December 2020
RUSSIAN CONSUMER
INTERNET USERS BY AGE:
www.statista.com/outlook/243/149/ecommerce/russia#market-
globalRevenue
DECISIVE FACTORS FOR CUSTOMERS TO MAKE AN ONLINE PURCHASE www.statista.com/
statistics/1128553/russians-on-motivating-factors-to-shop-online/
ATTITUDES TOWARDS ONLINE SHOPPING: www.statista.com/forecasts/1002824/
attitudes-towards-online-shopping-in-russia
SHOPPING ENTHUSIASM AMONG RUSSIAN CONSUMERS:
www.statista.com/statistics/1059560/shopping-enthusiasm-in-russia/
PROBLEMS FACED BY CUSTOMERS USING RUSSIAN POST DELIVERY: www.statista.com/
statistics/1131344/russia-customer-satisfaction-with-russian-post/
CUSTOMER SURVEY ON COURIER DELIVERY ISSUES: www.statista.com/
statistics/1131368/survey-on-courier-delivery-inconveniences-in-russia/
CUSTOMERS SURVEY ON PICK-UP POINT DELIVERY ISSUES:
www.statista.com/statistics/1131373/issues-with-pickup-point-delivery-in-russia/
CUSTOMERS SURVEY ON PARCEL PICK-UP AUTOMAT SERVICES www.statista.com/
statistics/1131375/customers-on-parcel-automat-delivery-issues-in-russia/
ONLINE SHOPS
LEADING FACTORS AFFECTING THE CHOICE OF LOGISTIC PROVIDER BY RUSSIAN ONLINE
SHOPS: www.statista.com/statistics/1131302/prevailing-factors-when-choosing-
a-logistic-provider-russia/
OVERALL SATISFACTION OF ONLINE STORES WITH LOGISTIC COMPANY SERVICES: www.
statista.com/statistics/1131388/russia-e-shops-satisfaction-with-logistic-services/
MOST FREQUENT ISSUES OF ONLINE STORES WITH LOGISTIC COMPANIES:
www.statista.com/statistics/1131323/challenges-of-e-commerce-logistics-in-
russia/
CORONAVIRUS
ECOMMERCE PURCHASE FREQUENCY CHANGE DUE TO THE CORONAVIRUS OUTBREAK:
www.statista.com/statistics/1105597/coronavirus-e-commerce-usage-
frequency-change-by-country-worldwide/
SHARE OF RUSSIANS WHO DISCOVERED NEW ONLINE STORES DURING SELF-ISOLATION:
www.statista.com/statistics/1126849/e-store-types-discovered-during-self-
isolation-russia/
RUSSIANS’ LOYALTY TO E-STORES DISCOVERED DURING SELF-ISOLATION 2020: www.
statista.com/statistics/1126869/loyalty-to-e-stores-discovered-in-self-isolation-by-
age-russia/
© 2020 RetailX and Global Retail Research BV
 CONCLUSION

THANKS
RESEARCH
Chief Researcher: Sara Lone
For questions about our research and to send feedback, please email
Sara: research@retailx.net
Research Analyst: Ludovica Quaglieri
Head of Research: Martin Shaw
At a time when the pandemic has had such a profound and CEO, RetailX: Ian Jindal
negative impact on business, the call of Russia’s affluent middle
EDITORIAL
class is music to the ears of retailers and brands. As vaccines are Managing Editor: Jonathan Wright
rolled out, and people begin and travel and mingle again, here Production Editor: Cam Winstanley
is a country that offers huge opportunities for growth. Writer: Paul Skeldon
Looking ahead, we would suggest that ecommerce-capable DESIGN
businesses with a strong presence within Europe are the ones Design: Nick Moyle
best placed to reach Russian consumers. They will find a market MARKETING
where doing business is possible so long as retailers and brands Marketing and Circulation: Addison Southam
conduct appropriate research, adapt to local conditions and marketing@retailx.net
develop partnerships. SALES
Commercial Director: Andy James
andy@retailx.net
Group Creative Solutions Director: Marvin Roberts
marvin@retailx.net

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the best sources available to us at any given time. Opinions reflect
judgment at the time and are subject to change.

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