Page 9 - bne_Tech_02_2020

Leaders
February 2020 www.intellinews.com I Page 9
The consolidation scenario is seen as likely for Russia, as the country's vast geography might hinder achieving the scale needed for sustainable and profitable growth without burning cash for consistent customer acquisition for all large players in the market.
Apart from Beru, the key challenges for AliExpress (most popular online store in Russia in terms of reach and user engagement) are maintaining cross-border GMV growth despite regulatory headwinds and developing Tmall platform into an independent, strong and profitable player.
"Wildberries. It is the largest domestic online retailer in terms of GMV, and we think it might operate around break-even," Sberbank CIB writes, reminding that "it disrupted distribution in Russia and brought fashion to remote parts of the country quickly and affordably."
Ozon is seen as consistently the most popular domestic online retailer, according to Sberbank's Ivanov consumer confidence survey, and is liked for its wide assortment, prices and quick delivery. The company expects to break even with cash flow level in 2022.