Page 13 - bne_Tech_02_2021

Fintech & E-commerce
February 2021 www.intellinews.com I Page 13
switched to eBooks, from mail to eMail, and from gold to eGold," said Beniamin Mincu, one of the founders and CEO of the company.
"This growth comes amid significant increase that we have seen on the one hand at the macro level and the interest expressed by institutional investors and retail investors from all over the world in blockchain technology and the progress that is taking place in this industry. On the other
Russian children's goods retailer Detsky Mir faces rivalry with Wildberries online major
Russia's largest e-commerce company Wildberries released its online turnover in the children’s goods category for 2020, showing a 70% year-on-year increase to RUB71bn ($0.95bn).
To compare, Russia's leading traditional children's goods retailer Detsky Mir raised online turnover 2.4x last year to RUB34.8bn, while the channel accounted for 24% of the company’s total sales.
As reported by bne IntelliNews, the turnover of Russia’s top online retailer Wildberries rocketed by 96% in 2020 to 437.2bn ($6bn).
Wildberries "maintained its leadership of the online channel in the children’s goods category and became the second largest player overall, with a market share of 13%," VTB Capital (VTBC) commented on February 5.
"E-commerce sales represent the most dynamic channel and Detsky schedules a medium-term target of 45% of the total (we forecast it increasing with a CAGR of 25% in 2021-2025)," VTBC notes.
hand, we have launched the network, we are live, and we currently have probably the most advanced and most efficient blockchain network in the world, so we are very excited. We probably have over 100 partners trying to integrate the network or build directly on Elrond. Moreover, we will launch an application that is highly anticipated, an application called Maiar. All this puts us on a path that will be at least remarkable in the next period," Mincu said recently, explaining his company's success.
Overall, in 2020 online turnover stood at 19% of the total children’s goods market and the pandemic-related limitations provided unseen tailwinds (share at 16% in 2019).
In the meantime, Desky Mir controls close to 30% of the total segment in 2020 and sees limited offline competition, as the next player is Dochki- Synochki with about 4% market share.
"The key rivalry is now switching to online, where the main players are Wildberries and Ozon," VTBC argues, considering the current competitive landscape to be rational but requiring a proactive approach and efficient execution from Detsky Mir.
Last month analysts at Sova Capital upgraded the call on retailer's shares to Buy, while admitting that recent changes in the shareholder structure add some uncertainty. But the analysts do not think this should dent Detsky Mir’s otherwise compelling investment case, built on a new business vertical and some of the best dividends in the Russian retail universe.