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bne December 2018 New Europe in Numbers I 59
Nine out of ten Russians have bought at least one item online in the last decade
near main transport stops (such as central metro stations).
One barrier to the growth of online retail in Russia is a lack of trust among con- sumers that online retailers will protect their personal information. Only 38% of respondents answered that they com- pletely agree with the statement “I am certain that information on online sell- ers’ websites is protected and secure.” In comparison, 54% of respondents located in European Union countries answered that they completely agree.
The growth of online sales in the FMCG segment
Russians are buying fast-moving con- sumer goods more frequently online. For example, instant coffee sales grew by 27% in the 3rd quarter of 2018 whereas offline sales did not grow from the previous quarter. A similar dynamic is observed with other popular cat- egories: chocolate sales grew by 51%
in comparison to 8% offline, shampoo — 90% compared to 3% offline. And energy drinks experienced record online growth over that same quarter: 108%
in comparison with just 4% growth in offline sales.
Consumers pay premium prices for FMCG items online. Sometimes the dif- ference in price is several times over. For example, the energy drinks that experi- enced such an explosive growth in online sales in the third quarter of 2018 sell for 3.5 times the price online that they do offline. Shampoo can sell for 9 times as much. The exception to this rule is water, which sells online for 1/6th the price that it does in retail stores.
EWDN in Moscow
According to research conducted by
the global market research company Nielsen, 90% of Russians have made at least one online purchase in the last ten years as a result of a growing consumer trust in online stores, East-West Digital News (EWDN) reports.
The range of goods that Russians buy online has expanded. The majority of on- line customers have purchased clothing (52%), beauty and personal care items (35%), event tickets (32%), electronics (32%), books, music, and news media (32%), mobile devices (31%) and take-out food or meal kits (30%).
Among fast-moving consumer goods (FMCG) that do not fall into the beauty/ personal care category, children’s goods top the list (19%), pet supplies (13%) and home cleaning supplies (9%).
For some categories, Russians buy online with more frequency than offline. For example, 73% were more likely to purchase video games online and 65% — travel-related items.
However, there are still certain catego- ries of goods that Russian consumers prefer to buy offline. These include packaged foods, wine and spirits, and fresh produce (only 3-4% of those sur- veyed had purchased items from these categories online).
Percent of Russians that have purchased items from the following categoris online at least once
Drivers and Barriers to the growth
of e-commerce
The main driver of e-commerce growth in Russia is consumers’ desire for convenience items and time-saving mechanisms. Retailers that are able
to communicate efficiently, offer flexible delivery options, and expand their prod- uct offerings are in the best position to broaden their online audience.
Even if we return to the aforementioned product categories that people rarely pur- chase online, most people surveyed would be willing to go online for them if the time-savings or product selection made doing so worthwhile. For example, 59% of those surveyed said that they would buy perishable groceries online if retailers of- fered items that met their specific dietary needs. It’s also important for retailers to reassure consumers that any products ordered online will be delivered fresh.
Delivery options make a big difference
Russian consumers appreciate having several delivery options. Many prefer the “order online, pick up in store” option, with 9% of respondents stating that they use it all the time and 55% saying that they would try that option. This is comparable to the figures for “home delivery”, which 8% use all the time and 58% say they would try. Ad- ditionally, 78% of respondents said that they would order more frequently online if a retailer had pickup points located
Volume of sales online. Russia's e-commerce sales are growing ten-times faster than traditional retail
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