Russians buy half of their consumer goods online

Russians buy half of their consumer goods online
Russians buy half of the consumer goods online
By bne IntelliNews December 12, 2018

Russians buy half of all their consumer goods online, RIA Novosti reported on December 12 citing a study by Romir holding. The share of the online purchases jumped by 32% y/y in 2018, with the frequency up by 21%.

Russian digital commerce is booming on the growing consumer base. Recent studies showed that online shopping has become a habit, and internet penetration is high, even among the older population.

The study shows that over 50% of Russian consumers shop on their smartphones. 81% of food deliveries are done on smartphones. In the food category the growth of online shopping was 40%, in the non-food segment 31%, in the apparel segment 13.2%.

As bne IntelliNews recently reported nine out of ten Russians have bought at least one item online in the last decade and e-commerce is starting to take off.

The range of goods that Russians buy online has expanded. Online customers have purchased clothing (52%), beauty and personal care items (35%), event tickets (32%), electronics (32%), books, music, and news media (32%), mobile devices (31%) and take-out food or meal kits (30%), according to global market research company Nielsen.

And sales in the niches are also exploding. Private user-to-user (C2C) sales on Russian messengers and social networks reached RUB591bn ($9bn) through March 2018, with an average receipt of RUB1,500, Vedomosti said on November 23 citing data from Yandex.Kassa and Data Insight.

All of the big retailers are currently developing online strategies and the market leaders such as Yandex and Russian state-owned banking giant Sberbank are in the process of building Yandex.Market that is designed to become a platform for online sales.

According to a Morgan Stanley report released last month, the Russian e-commerce market for physical goods will grow to $31bn by 2020 and may reach $52bn by 2023 – up from around $18bn (1,040bn rubles) in 2017, reports East-West Digital News (EWDN).