in Affiliate Marketing, Digital Marketing, eCommerce, Russia

Russian VS Foreign online retailers

Russian online retail sector experiences more and more pressure from the foreign competition. According to Data Insight reports in 2012 Russians ordered online 50% more often from abroad compared to 2011.

Some experts attribute such growth to an agreement reached between local Russian payment system Yandex.Money and Skrill payment processor, which enabled clients from Russia to pay in western online stores with locally issued plastic cards.

Russian online retail market enjoys such strong attention thanks to its fast growth pace together with stagnation and saturation of western retailer’s home markets. Fair to say, Russian retailers are not easy to compete with. E.g., (one of the major local multi-category retailers) claimed to conquer 80% of the market (and they might actually). Local companies are also “supported” by the government, which plans to introduce protective tariffs and other laws (e.g. prohibit foreign companies to process Russian citizen’s personal data on servers located outside the country).

This being said, Russia is a huge and interesting market to fight for. In a coming year we’ll see more competition happening.