eCommerce in Russia

Is Russia still open for business? Well, as I write this sitting in a Coffee shop in Moscow the answer is certainly yes.

The Local Market:
Russia is massive, huge, unimaginably big and it would be idiotic to believe that Moscow is the only place in Russia that exists, however, it is the epicentre of business and where the majority of western (& Russian) businesses start.

eCommerce Landscape
eCommerce is growing rapidly as websites, distribution (always notorious in Russia*) and trust in brands improves. Local companies like La Moda (who started in Moscow & on a massive growth curve), have set up their own distribution hubs in key cities all over Russia, offering same day delivery to the top 70 Russian cities. La Moda also helps with the unique "cash" on delivery model which is the main form of payment in Russia (I say cash, normally paid on the door-step by credit card), Unique, as it means a courier turns up on your doorstep with the item and you have a set period (normally 15 minutes) to try it on, if you like it, you pay, if you don't, you return.

This also means you need a call centre, as everyone who makes a order, instead of entering a credit card, enters a telephone number and needs to be called back to arrange the delivery and order, it also has the potential for up-sell, which can help with CRM and lifetime value!

Online Marketing:
Google is just a bit player in Russia, the real playa(sic) in the market is Yandex, in search and VK.ru in Social, Facebook is big but not the largest. Instagram seems to be making a big play for Russia and the Russian mentality of photographing everything helps it's popularity.

Street bloggers are huge and have massive followings, especially in Moscow and St Petersburg, as is normal these bloggers/vloggers carry a hefty price to work with. TV however is still king for advertising alongside experiential marketing to the right target markets (everyone loves going out in Moscow).

However there are drawbacks, moving stock into the country is notoriously difficult,new sanctions both from Western countries and from the Russian government on imports are creating issues. Local partners are now the norm and making sure you work with the right ones, experienced in these key areas can eleviate a lot of the issues. Russia is still a market with huge potential and if targeted in the correct way can be very successful for brands. 



*A few years ago a logistics manager in Russia said to me "trying to deliver outside of Moscow? you may as well throw the parcel out of the window as it has about the same chance of getting there...."