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Russian online retail worth $13.4 billion in 2013

0 25 April 2014

Russia's ecommerce boom shows no signs of slowing, according to a report put together by InSales, an online storefront creator. According to their data, Russian online retail was worth $13.4 billion in 2013, a 34% increase on 2012. InSales predict that this growth will continue, taking total e-commerce annual revenue to more than $28 billion by 2016. 

 

The report also broke down Russian online retail into sectors. The electronics and household appliances sector generates more than a fifth of total revenue. In second place is clothes and shoes, while Russians also clearly like to buy computers and laptops online. Interestingly, while online fashion retailers such as Lamoda and KupiVIP have raised huge funding rounds from international investors, retailers specialising in electronics, household appliances, computers and laptops have attracted much less interest. This may, however, be about to change as Ulmart, Russia's leading online retailer by revenue, is looking to raise a big round

In 2013 the two biggest sectors - electronics/household appliances and fashion - grew at about the same rate as online retail as a whole (33% and 34% respectively). The fastest growing sector from the top-5 was car parts, which increased revenue by 43%. Other fast growing sectors were pet products (95%), medicine (63%), sports and the outdoors (42%) and building materials (40%). 

Russian e-commerce is still Moscow-centred, with 40% of revenue generated in the capital. St Petersburg brings in another 9%, but this means that more than 50% of Russian online retail spending now comes from outside the two biggest cities. This suggests that in spite of logistical difficulties online retail is catching on in Russia's regions. Having said that, with more than 90% of Russia's population living outside of Moscow and St Petersburg, there is still plenty of room for growth. 

Just 40 retailers, each selling more than 1000 items every day, bring in more than 25% of total revenue. You can see Forbes' list of the top-20 here. Interestingly, no foreign retailers have made much headway in Russia, and the market remains dominated by local players. Another feature of the Russian market is the lack of a dominant player, like Amazon in the UK. 

Despite this growth, e-commerce in Russia is much less developed than in other parts of the developed world. To compare, online retail spending in the UK in 2013 is estimated at over $150 billion. Room for growth then... 

Source: InSales

Top image via Shutterstock

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