Page 19 - bne_Tech_05_2019

Fintech & E-commerce
May 2019 www.intellinews.com I Page 19
Russia’s steel major Severstal to boost online sales
Ben Aris in Berlin
Russian steel major Severstal plans to consider- ably increase the share of its internet sales in Russia and CIS to 60% of total by 2023, Vedomosti daily reported citing the head of company’s e-commerce unit Victor Romanovsky.
After only three years from the launch, in 2018 Severstal doubled its online sales in the region to about 2.5mn tonnes or about 30% of total sales. The company now plans to double that again by 2030.
Online sales are focused on b2b distribution to SMEs, but Severstal plans to adjust its online sales system for large clients as well. Costs on
IT and digitization soared four-fold in the last four years to about 7% of total capex, and will continue
to increase by 20-25% annually, the company estimates.
In 2019 total capex is planned at $1.4bn, with $98mn to be spent on digital projects, Vedomosti esti- mates, eventually reaching about $200mn annually.
Analysts surveyed by the daily welcome higher digitization in the segment, reminding that 77% of steel consumption accounts for the construc- tion sector, which would also benefit from lower costs and greater transparency.
Other metals majors such as NLMK, MMK, OMK, ChtPz, and TMK pipemaker also operate online trading platforms and sales solutions.
Russia’s Yandex said to plan cashback card with Alfa and Tinkoff banks
Russia’s internet major Yandex is planning to issue cashback credit card co-branded with Alfa Bank and Tinkoff Bank, Kommersant daily reported citing unnamed sources close to the company.
Reportedly, Yandex plans to launch across-the- board loyalty programme Yandex.Plus proposing cashbacks to users of its services in partnership with Alfa Bank, Tinkoff Bank, Master Card, and possibly other banks in the future. The banks would benefit from Yandex customer base.
The monthly cashbacks would range from 1-10% on money spent on Yandex services, including anchor services such as Yandex.Taxi, Yandex.Food, Yandex.Beru marketplace, and others.
Analysts and market participants surveyed by Kommersant confirmed that cashback was an effective strategy to build loyalty. On the other hand, Russian consumers are used to cashbacks and Yandex.Plus proposal so far does not seem to suggest anything extraordinary and is seen as unlikely to seriously boost audience conversion.