Russian electric dealers focus on the market potential in remote areas to provide sales of goods services

The development of electronic commerce in Russia is rapid, but the supporting infrastructure is not satisfactory. In 2013, Russia's use of online shopping was increased from 28% in 2012 to 43%, with significant growth and continued momentum in the future. In addition, the proportion of people in Russia who are worried about net-shopping security is only 22%, far below the global level of 43%, online shopping security is mainly to buy online fraud, goods not board, pay security, for this reason, Russia's local electricity dealers or China's Russian electricity dealers are constantly introducing new measures to enhance the confidence of Russian online shopping, reduce the risk of online shopping.

Hugo Net learned from the March 21 report of the Moscow Times that Martijn Peeters, the head of the CPA firm, said that E-commerce companies are offering unprecedented ways to sell all kinds of goods and services to those regions, in order to accommodate residents in remote parts of Russia.

The volume of transactions reached through television shopping channels in these areas is high, and Internet companies are aware of the potential. "Offline retailers in these areas are immature, so it's a great opportunity for us, as well as other e-commerce companies," said Nils Chresti, general manager and chief financial officer of the online fashion retailer Lamoda. ”

According to the World Bank, in 2012, the internet penetration rate in Russia is still relatively low, only about 53%, but the same as e-commerce, showing an upward trend. Vitaly Zhigulin, an online supplier Executive Director (Akit), points out that the number of Russian internet shoppers in 2013 was 4 million, up 13% from 2012. "The growth rate in these areas is 50% per cent, far above the city centre," he said. "In addition, the number of Internet users in the southern, northern Caucasus and Siberia grew fastest last year." Vitaly Zhigulin added: "In 2013, Russian internet sales rose 30% to $17 billion trillion and are expected to grow at the same rate in the next five years." This is mainly due to the spread of mobile internet and Internet in small towns. ”

The operators in these areas need to be aware that consumers here are fundamentally different from Moscow and St. Petersburg. Many of the consumers here are new internet users who don't trust online shopping. It is understood that Russia's consumers rely heavily on cash payments, last year 69% of online shopping selected cash transactions, 14% of the choice of credit cards. Consumers in these areas may not even have a single credit card.

Peeters pointed out that the service levels in these areas are also very low, consumers have been accustomed to lengthy delivery time, often need to wait a few weeks to receive the goods. "If consumers in these areas receive deliveries through the Russian postal service, they have to go to the post office to pick up the goods, which may take 4 weeks," he said. "But if a company can provide a higher level of service, it will quickly gain market share." Because of this, Russian e-commerce companies, such as ozon.ru, Ulmart and Lamoda, have had to find ways to solve the local infrastructure and high courier costs.

Chresti said the development of infrastructure in these regions is "one of Russia's major challenges" and Lamoda is committed to expanding the next day delivery services in these areas. It is understood that the company's logistics operation services cover more than 25 cities throughout Russia and Kazakhstan. The Lamoda Company's sales of 40% from Moscow and 60% from other parts of Russia are why they are so concerned about the Russian market.

Hugo Net learned that recently, PwC, the accounting firm, through more than 1000 Russian electricity dealers surveyed, forecast 2018 Russian E-commerce turnover will be from the current account of 3% of the share of retail trade growth to 12% of 2018. Russian shopping habits are moving from offline trading to online trading. At the same time, with the development of mobile Internet, it is believed that the future of mobile phone trade fairs in Russia is higher than the PC side. To this end, both China's Russian power and Sino-Russian logistics, is an opportunity for development.

It is understood that the Russians pay more than the quality of the product, they love to buy cheaper but more quality products. Because of this, the proportion of Russians who buy shoes, clothing, electronics and cosmetics directly from producers continues to climb. In addition to maintaining the original price advantage, China's Russian goods need a little change in the Russian concept of buying, quality and price double fists, and further expand the share of Chinese goods in the Russian market, improve business opportunities.

In terms of logistics requirements, the Russian people's demand for goods is increasing, and after-sales service is also required to increase. If China wants to solve the last 100 meters of the Russian market, it must seek the cooperation of experienced logistics service providers. Xru is a good example of the postal and courier services it has launched to meet the needs of different electrical dealers. The Postal Service can help you if you ask for a low price. For goods to arrive fast and other additional services, such as delivery of goods to pay, you can choose courier services.