Page 144 - RusRPTJul23

During the first quarter of the year, Russia's e-commerce market experienced a 13.6% year-on-year growth, reaching 1.3 trillion rubles, of which the domestic market accounted for 1.29 trillion rubles. Cross-border purchases saw a decline, comprising only 2.9% of total e-commerce compared to 5.5% in the previous year. However, online sales in January to April grew by 17% year-on-year, amounting to 1.8 trillion rubles, according to AKIT.
Wildberries and Ozon, as the key players in Russia's e-commerce market, both demonstrated robust growth in their gross merchandise value (GMV) during the first quarter of the year. Wildberries, the market leader, achieved a remarkable doubling of its GMV compared to the previous year, while Ozon's GMV increased by 71%. These results signify the strong performance of both platforms in meeting customer demands.
Wildberries reported a GMV of 577.2 billion rubles during January to March, with the number of orders on the platform surging by 118% to 618.1 million. The company also highlighted its expansion into neighboring countries such as Belarus, Kazakhstan, and Kyrgyzstan, further solidifying its regional presence.
Ozon experienced a 71% year-on-year increase in GMV, reaching 303 billion rubles, accompanied by a 93% rise in the number of orders to 179.3 million. The marketplace's active buyer base grew by 29% to 37 million. Notably, Ozon achieved a total revenue of 93.3 billion rubles, resulting in a profit of 10.7 billion rubles, a significant improvement from the net loss of 19.1 billion rubles in the previous year. The company attributed this success to the extinguishment of financial liabilities and strong revenue growth.
Looking ahead, Ozon plans to expand its operations to Kyrgyzstan and enter the Armenian market later in 2023. The company revised its GMV growth guidance for 2023 to at least 70%, reflecting its positive outlook and ambitious expansion plans.
Analysts have expressed optimism about the future prospects of both Wildberries and Ozon. Sinara Bank's senior analyst, Konstantin Belov, considers the 63% growth projection for Ozon's GMV as conservative, suggesting that the marketplace has the potential to exceed expectations.
The impressive performance of Wildberries and Ozon in the first quarter highlights the dynamic nature of Russia's e-commerce market. As these platforms continue to expand and innovate, the sector's growth potential remains significant, creating opportunities for further success and development within the industry.
144 RUSSIA Country Report July 2023 www.intellinews.com