The European influence on the Russian ecommerce market is declining rapidly. And it’s losing its share to Chinese companies, as their growth in Russia had been fueled thanks to the devaluation of the ruble. The Russian currency has fallen nearly 40% against the euro this year, so Russian consumers are now even more conscious of price.
TopDelivery, which offers several integrated delivery services for online retail in Russia, has raised investments from Impulse VC. With this money, TopDelivery wants to further improve its logistics, customer services and IT system. TopDelivery also wants to expand its delivery area, which now covers the whole territory of Russia.
While Cyber Monday is still more popular in the United States, in Europe retailers increasingly embrace this day to boost their sales. In the UK and Germany there was an increase in conversion in consumer electronics during Cyber Monday last year, while there was a decrease for clothing and footwear in the UK and Spain.
Global investors are looking with increasing interest to the ecommerce industry in Eastern Europe. The growth and trends in this region attracts the attention of international ecommerce players and investors. For example in Turkey, there’s a raised interest of investors, mostly in the clothing sectors.
The ecommerce industry in Eastern Europe is expected to reach 23 billion euros worth of sales in 2014. In absolute numbers, this region may not be top notch, but when we consider the average growth rate of 47% over the year 2013, the ecommerce market in Eastern Europe is showing the strongest increase in Europe.
The B2C ecommerce industry in Russia has been growing rapidly. As a matter of fact, it was ranked fifth worldwide in ecommerce growth last year. Russia is now forecasted to surpass South Korea to become the ninth largest ecommerce market worldwide. And in 2018, the industry could be worth 30 billion euros.
It looks Ulmart has found the ideal model for operating an ecommerce business in Russia. The 31% growth of sales for the first six months of 2014 in a year-on-year comparison are proof of that. Sequential quarterly growth even increased by 47%. Ulmart showed to be a disruptive player in the Russian ecommerce with its ‘web of fullfilment’.