Page 14 - bne_Tech_01_2021

Fintech & E-commerce
January 2021 www.intellinews.com I Page 14
Russian cities) and Positronica, with an estimated price tag of $1bn.
According to Data Insight, Citilink’s 2019 GMV was RUB90.4bn ($1.2bn) – the second-largest after Wildberries, BCS Global Markets analysts remind on January 12. Sberbank's strategy is to become a Top-3 e-commerce player in Russia.
"The potential acquisition suits Sberbank’s strategy to become a strong e-commerce player, but may be a rather heavy investment, given total anticipated spending targeted as 4% of equity (RUB200bn) within 3 years," BCS GM analysts commented, seeing the news as neutral for now, and reiterating a Buy call
on Sberbank's shares.
Albania needs reforms for e-commerce to thrive, says World Bank
Albania needs to make critical reforms in
a range of areas, including online payments and logistics if the nascent e-commerce sector is to grow, said a World Bank analysis released on January 21.
Online markets grew during the coronavirus (COVID-19) pandemic, with 20% of local firms surveyed by the development bank having either started or increased online business activity during the crisis.
The Albanian e-commerce sector is small at present, with only 7% of Albanians purchasing products online against 14% throughout the Western Balkans region, according to the 2017 World Bank Findex survey.
Previous unconfirmed reports suggested that Sberbank is considering a partnership with M.Video-Eldorado online platform Goods.ru or possibly with M.Video itself. M.Video-Eldorado is Russia's largest electronics retailer.
In 2019 M.Video-Eldorado group was the third- largest e-commerce player last year (market share of 5%) behind Wildberries (12.4%) and just behind Citilink (5.3%).
Prior to reported negotiations with M.Video and Citilink, Sberbank's joint venture with Yandex. Market with Yandex internet major ended up in a bitter divorce. Sberbank's bid for Ozon, the e-commerce player, also fell through, and Ozon made a successful $1.2bn IPO instead.
“E-commerce can be an important asset for Albania. Online sales channels allow businesses to reach more customers, at home and abroad. Customers gain from greater convenience and more choice. Sectors enabling e-commerce can create new jobs, including in technology companies, logistics and online payments,” said the report.
For Albania specifically, e-commerce can link the small domestic economy with larger and more affluent markets abroad such as in EU countries, as well as connecting rural with urban areas.
However, it highlighted a broad range of areas where reforms are needed: logistics and customs; digital connectivity; online payments; private sector capabilities and skills and the e-commerce regulatory framework.