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bne July 2021 Companies & Markets I 17
bne:Tech
Russian e-commerce recorded one of
the world’s highest growth rates in 2020
Adrien Henni in Moscow for East West Digital News
Specialised research agency Data Insight has just released the international version of its Russian e-commerce report for 2020. Domestic sales of physical goods amounted to RUB2.7 trillion (some $37bn at the average exchange rate of the year), up 58% from 2019 – placing Russia among the world’s fastest-growing e-commerce markets, reports East-West Digital News (EWDN).
Several segments recorded explosive growth as the pandemic drove millions of consumers to online shopping, accelerating pre-existing market expansion.
The most spectacular example is e-grocery, with sales volumes reaching RUB13bn ($180mn), up 250% from 2019. Illustrating this trend, market leader X5 Retail Group posted a 347% GMV jump, becoming Russia’s largest digital company in food retail.
Data Insight also ranks Russian e-commerce sites by sales volume, number of orders and average order value. The 2020 ranking identifies the following leaders:
Wildberries.ru maintained its leadership in 2020 as its sales revenues reached RUB413bn ($5.7bn), nearly doubling year
“The most spectacular example is e-grocery, with sales volumes reaching RUB13bn ($180mn), up 250% from 2019”
on year. However, the company posted a net profit of only RUB2.11bn ($29.1mn), half that in 2019. Meanwhile, the company launched sales in Poland, Slovakia, Ukraine and Israel – prior to Western Europe and the USA in early 2021.
With a whopping 144% y/y revenue growth, Ozon.ru ranked second in 2020. It was #7 in 2017, #4 in 2018 and #3 in
Russian e-commerce had domestic sales in physical goods of $37bn, up 58% y/y.
2019. Last year was extremely favourable to Ozon on the financial front, too: after a $150mn pre-IPO funding round in March, the company made a triumphant debut on the NASDAQ in November, raising more than $1.2bn instead of the expected $500mn.
“Wildberries.ru maintained its leadership in 2020 as its sales revenues reached RUB413bn ($5.7bn), nearly doubling year-on-year”
Selling electronic appliances and a variety of other products, Citilink.ru fell from second place in 2019 to third in 2020, with a relatively modest 47% y/y growth. The Merlion group, which owns the site, has engaged in talks with Sber for a potential acquisition.
Online fashion leader Lamoda – a property of Global Fashion Group – held the seventh place among Russian e-commerce sites. It underperformed the market with a mere 32% sales growth y/y.
Meanwhile, the performance of Western omnichannel retailers Ikea and Leroy Merlin is striking. According to Data Insight’s analysts, the Swedish DIY giant generated almost $566mn in online sales revenues last year (up 175% from 2019), while its French competitor made around $524mn (up 217%).
Amazon is absent from this ranking. The US giant’s sales to Russian consumers are modest, based only on a cross- border offer.
This article first appeared in East-West Digital News (EWDN), a bne IntelliNews partner publication.
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