The e-commerce market in Russia is not yet monopolized; the four largest e-commerce companies account for no more than 27% of the market, Yevgeny Popovich, director for retail and e-commerce partners at Schneider Electric IT Division, said on Thursday, February 28.
“In other developed countries, the situation on the e-commerce market is just the opposite, with big players having already monopolized everything. In the US, the top four e-commerce companies account for 63% of the market, and in China, for 84%. In our country, the e-commerce market is differentiated, and this is good,” the expert noted.
He added that the leaders of the Russian e-commerce market are growing four times faster than the market itself.
“Wildberries in 2018 grew 86% faster than the market, and Ozon, 76% faster,” Popovich said.
Local players who understand market realities have more power in the Russian e-commerce market, he added.
“However, our e-commerce market volume is way behind the majority of developed countries. It is smaller than in China, the USA, England, Japan, Germany, France, South Korea, and Canada, accounting for just 0.9% of the world market,” the expert explained.
According to him, the e-commerce market development is driven by the high penetration of the internet in Russia:
“It is the highest in Europe: 109 million Russians, or 76% of the population, are active users of the internet. The internet is used by 95% of young people aged between 16 and 29. Older people, from 30 to 54, are also active online: 88% of them use the web,” Popovich concluded.