Press Release (ePRNews.com) - ROME,ITALY - Mar 15, 2017 - The e-commerce market in Russia exceeds 26 billion dollars according to the latest EWDN 2017 data of the “Russian E-Commerce Report” as reported by the Online Marketing Manager, Giulio Gargiullo, engaged in business with Russia for over 15 years. With the aid of an infographic that he commissioned, Gargiullo also showed an overview of the opportunities related to E-Commerce and digital marketing in Russia. Gargiullo anticipated new digital marketing trends in Russia at the SMXL Milan international conference held recently.
As the EWDN “Russian E-Commerce Report” indicates, the ecommerce market in Russia has reached 26 billion dollars, thus exceeding over 20% on an annual basis. The turnover is divided into 16 billion dollars for physical goods and 10 billion dollars for online travel.
“The Russian Federation is the market with the largest number of users in Europe. There are 165 million native Russian speakers around the world, while there are 275 million people worldwide who can speak Russian”
Cross-border sales have sustained the highest growth, with a value of +26% for 80% of parcels and small packages, and over 4 billion dollars just for physical goods according to the “Russian Post and Industry Association NAMO”.
The growth of this segment was led largely by Chinese companies such as Alibaba’s B2C marketplace, Aliexpress.ru, but also by well-known Western players such as Amazon, Asos, Next and Yoox.
Giulio Gargiullo continues, “it is a unique market, full of opportunities, with a large interest in making foreign purchases, in luxury and in high quality. The luxury sector in Russia deserves special attention with a reboot in progress as evidenced by ‘Luxury in … Russia: The Comeback’ by ContactLab and Exan BNP Paribas.”
Gargiullo specifies, “many players in the luxury sector have not yet grasped the opportunity to have a suitable online presence in the Russian online market or do not have an online presence at all.”
“It is a market with its own language, its own culture and its own very strong identity. It is important to understand the Russian mindset, to work hard on localization of online businesses and marketing, respecting the local culture and the individual regions.” Further explains Gargiullo.
Gargiullo continues, “to develop online businesses in Russia, Yandex is the leading Russian search engine, which is the main gateway to enter the Russian market for e-commerce or any online business. Yandex is not only the leading search engine (57.6% of the search market share and 72% of the search advertising market), but also consists of many services used by Russians every day, including Yandex Market dedicated to e-commerce. Even the world of social networks is dominated by one local player, Vkontakte, which is the social network most used by Russians.”
Gargiullo notes that, “for any online marketing activity in Russia, the language spoken in Russia is essential. Moreover, it is also spoken in many countries of the former Soviet Republics, and in Europe, Israel and North America. The Russian Federation is the market with the largest number of users in Europe. There are 165 million native Russian speakers around the world, while there are 275 million people worldwide who can speak Russian.”
Regarding future prospects, Giulio Gargiullo concludes, “online commerce in Russia will continue to grow thanks to the expansion of internet penetration, particularly from mobile devices, even in the most remote areas. This will also be encouraged by the increasing use of electronic payment methods, improvements in logistics and decreasing ongoing shipping costs. Evidence of the above can even be found in warehouse property prices, which at the end of 2016 fell to less than 60% of the prices recorded at the beginning of the crisis.”
About Giulio Gargiullo:
Giulio Gargiullo is the Online Marketing Manager that for many years has worked between Italy and Russia and at an international level with companies and other leading facilities linked to different sectors in the domain of luxury. Giulio Gargiullo fluently speaks Italian, Russian and English and is involved in bringing new customers and business opportunities to companies worldwide through advanced business activities and digital marketing. He is also responsible for building privileged relations between business partners.
Download Infographic: about Russian online market: http://www.giuliogargiullo.com/DigitalMarketingInRussiaENG.pdf
Giulio Gargiullo Online Marketing Manager