Page 21 - TURKRptJun22

bne June 2022 Companies & Markets I 21
Russia launches homespun Google Play alternative
bne IntelliNews
Russia has launched NashStore, its answer to Google Play. The platform is a response to western sanctions and the withdrawal of tech companies from the Russian market. NashStore currently offers 1,000 applications, compared with Apple’s 2mn and over 3mn on Google Play. “Nash” translates as “Our”.
The platform, which is available only on Android devices, also allows users to download the apps of businesses which have been sanctioned or have pulled out of Russia. The app of state-run banking giant Sberbank is included, as is online film streaming service Wink.
NashStore also allows users to download RuTube, the hastily designed Russian alternative to YouTube. RuTube was
hacked in May. As a result, the video-hosting service had its website taken down, and even the source of its code may have been undermined. The attack may have been conducted by international hacking group Anonymous.
By downloading RuTube on NashStore, Russian users can find a workaround for the long-term damage done to the site by the hackers.
However, NashStore is no match for the market-leading
tech companies it claims to rival. The platform – which 700 Russian companies collaborated to build – was supposed to be launched on May 9, Russia’s Victory Day. It is no surprise that the project is behind schedule, however.
Without the support of Google Play, on which the platform would first have to be installed, it is unlikely to enjoy much popularity. Users wanting to install NashStore must first search for its website and install the software, then register an account.
The Russian Ministry of Finance claims that NashStore is not receiving funding from the budget of the Russian Federation.
Russia’s Ozon 2021 results show growing orders
bne IntelliNews
Russian e-commerce major Ozon has published its results for the Financial Year 2021. With order numbers and revenue up, the figures indicate that the company is
set to continue gaining market share in 2022 in spite of the logistical difficulties posed by sanctions against Russia.
Ozon also announced that talks with bondholders are underway with the hope of re-structuring obligations.
The standout figures include 223.3mn orders in FY21, which represents a 202% year-on-year growth, and full-year gross merchandise value (GMV) of RUB448bn (around $6.7bn). GMV is the total value of orders processed through Ozon and revenue from services to buyers and sellers on the platform.
Ozon saw a surge in sales during the pandemic, with the proportion of orders outside Moscow increasing sharply. It has since been investing heavily in expanding infrastructure beyond the capital, including new fulfilment centres and delivery services. The company also began cross-border ventures with Belarus and Kazakhstan in 2021.
In the first half of the financial year 2021, Russia’s three biggest e-commerce players (AliExpress, Ozon and Wildberries) accounted for 34.3% of the market. Now there are signs that the market leaders are growing their share still further. Ozon’s annual order frequency is up 61% compared to 2020, and revenue in Q4 was up 76% y/y.
The total number of sellers using Ozon grew by 250% in FY2021, which the company attributed to the development of logistics and fulfilment centres as well as a growing variety of marketplace models.
Ozon’s strong growth figures for 2021 come as a rare piece of good news in tough market conditions.
Sanctions imposed on Russian business by western countries this year in response to the invasion of Ukraine have complicated imports to Russia and made financial transactions with overseas partners almost impossible.
www.bne.eu