Page 17 - bne_Tech_03_2020

Fintech & E-commerce
March 2020 www.intellinews.com I Page 17
Russian Dixy retailer to launch online sales with Ozon
Russian retailer Dixy Group will launch online sales on the platform of e-commerce major Ozon, Vedomosti daily reported citing unnamed representatives of the companies.
As reported by bne IntelliNews, in 2019 Dixy Group has merged with liquor store chains Bristol and Red & White, under the umbrella of Cyprus- registered DBKR Mega Retail Group Limited,
to form the third biggest retailer in Russia.
In 2019 the total top line of the group amounted
to RUB800bn, with 2,659 retail points as of end of last year, out of which 2,508 were proximity stores, 111 supermarkets, and 40 hypermarkets.
In the meantime Ozon enjoyed rapid growth in 2019, and will likely repeat that in 2020, having its valuation boosted recently. It is the third largest online retailer
Valuation of Sistema’s e-commerce asset Ozon boosted to $1.8bn
The valuation of e-commerce platform Ozon.ru has been boosted from $1.1bn to $1.8bn by the analysts of VTB Capital in a special note that analyses the asset of Russian multi-industry investment conglomerate AFK Sistema.
As profiled by bne IntelliNews, Ozon is one of Russia’s big-four online retailers and is battling it out in the e-commerce market, which is growing in double digits and seen as prime
for consolidation.
of food and groceries after Utkonos and Perekrestok- online (marketplace of the Perekrestok format of Russia's largest X5 Retail Group).
Dixy will reportedly expands its assortment on Ozon's platform to several thousand units, and the orders will be available for express delivery, and at the drop-off points. The partnership would make Dixy assortment available in 6,500 Russian cities.
It has recently been reported that Ozon will give up most of its in-house delivery services. At the same time Ozon boosted its automated pick-up terminal chain Ozon Box and claimed it to be the largest in the country. However, the latest financial report of Wildberries, Russia's largest e-commerce player, showed that 90% of its shoppers chose home delivery over picking up goods in the drop-off/pick-up points.
VTB Capital notes that Ozon enjoyed rapid growth in 2019, and will likely repeat that in 2020. The company recorded 87% y/y Gross Merchandise Volume growth in 10M9, far ahead of the market growth of 25%. VTBC estimates that Ozon.ru gained 1.7pp in market share; however, the market remains extremely fragmented, with Ozon.ru’s share at only 5%.
The online marketplace is expected to continue to grow in 2020 driven by assortment expansion