Russia is a growing internet market that is set to be worth £20bn by 2014 but is still years behind the UK. Britain's online retailers could and should take advantage of this...
2. Agenda
Who we are
Ecommerce in Russia
Yandex
Optimising for Yandex
The challenges
Ecommerce versus high street
@searchlabs
3. Who is Search Laboratory?
Global search marketing experts
150+ clients, 18 countries working in 35 Languages
“Science” NOT “Art” – ROI & profit focused
Ethical, transparent and sustainable approach
Smart software & smarter people
150 staff
Multi-channel & ecommerce specialists
5. Russia: A country online
57.81m internet users
80m by 2014
71% of the population online
23% access the web via a mobile device
Ecommerce not restricted to the big cities
@searchlabs
6. Russia: A country buying online
More than ¼ million ecommerce orders per day
Ecommerce market to be worth £19.3bn in 2014, rising to £$23.2bn in
2015
Foreign online purchases totalled $1bn in 2011
6% of internet users have already bought from foreign ecommerce sites
10 purchases per year
Just the tip of the iceberg…
@searchlabs
7. Who‟s buying online and what?
Female 30 to 39 years old
Average age of online consumer is 44
Households with incomes >RUB 30K per month more likely to
buy online
Electronics and books are the most popular
Food is not a big ecommerce player
Average purchase RUB 3,200
Sources: Morgan Stanley
@searchlabs
10. 4th most popular search engine in the
world
95m monthly users (+60m in Russia)
4.84bn searches per month
Most viewed entity in Russia
45% overall online advertising share
75% market share by 2020
@searchlabs
62%
26%
11%
Yandex
Google
Mail.ru
Rambler
Bing
11. 87% of online consumers research purchases on search engines
+80% compare prices
Yandex.Market is the starting point for 40% of commercial
searches
Yandex.Market set to contribute over 10% of entire ecommerce
sales in 2013
@searchlabs
12. Mail, Maps, Photos, Videos, Placard, Catalogue, Events, Work,
Metrix & Taxi
Ranks websites using Citation Index
Indexes foreign websites for searches typed in English
Ethically-focused search engine
Warns users when a website contains doorways
Doesn‟t allow pop-ups or floating ads
Protects users from viruses and phishing scams
@searchlabs
15. Direct.Yandex is the search
engine‟s advertising platform
Straightforward natural ad
text: “Bike sale. Catalogue of
bikes and accessories”
paid advertising
@searchlabs
20. How Russians search
In Russian
Brands („Sony‟ or „Komatsu‟)
generally searched in their
original language
Search plays a part in off-line
purchases
@searchlabs
28. Payment
Cash-on-delivery is the main method of paying
Credit / debit cards mistrusted
Money.Yandex or WebMoney
Data
@searchlabs
29. Who‟s doing ecommerce well
Ozon „Russian Amazon‟
Potential sales of $1bn by 2014
2,100 pick-up points in 130 cities
80% cash on delivery
Amazon and Ebay
@searchlabs
31. Social
34.5m visit at least one social platform monthly
Average of 10.4 hours a month spent on social
media
VK.com is the most popular
Facebook increasingly popular
Twitter linked up with Yandex
Those succeeding in ecommerce have strong social
presence
@searchlabs
33. Ecommerce versus the high-street
Russian ecommerce set to grow to ~ $36bn by
2015
Just 4.5% of total offline retail sales… could
rise to 7% by 2020
In the UK this is already around 10%!
@searchlabs
34. Summary
Russia is an internet giant that‟s waking up
Yandex is the key to selling online in Russia
To sell online in Russia, you must understand
how Russian‟s search
Payment and trust are two major challenges to
Russian ecommerce
Russian ecommerce is ~ 10 years behind the
UK
@searchlabs
Internet penetration in Russia is consistent. It’s not just a case that everyone in Moscow is online but provincial cities are not. For example 70% of Moscow’s near 12m population are on the internet, and in Krasnoyarsk where the population is only slightly over 1m the penetration is also 70%Moscow and St Petersburg ecommerce markets growing at 25% per annum. Regional audiences growing faster at 40%. Both very large rates and this shows the potential for selling online in Russia
Tip of iceberg: ecommerce currently only accounts for around 2% penetration
Online shopper most likely to be female and 30 to 39. In the US this is 45
Google are not the be all and end all of search engines, and they’re not even number one in Russia
Yandex is the Russian Google. So if you want to sell online in Russia you need to be on Yandex!
Yandex dominates the Russian search market with 62.45 market share, compared to Google’s 27.16. To put into context Google has a market share percentage in the US and western Europe in the high 80sThis may be the first time some of you in the room have heard of Yandex… everyone has heard of Microsoft before… last year Yandex overtook Microsoft’s search engine Bing as the world’s fourth largest search engine (the third most popular is Baidu)Yandex overtook Russia’s top TV chanelPervyKanal, in daytime audience numbers in 2012In December 2012 Yandex handled nearly 5bn search queries – this total is only going to rise… if you want to expose your product to the Russian market you must be optimised for Yandex
Yande.Market is a shopping tool (like a feed) which has categories of different products
Like Google, Yandex is much more than just a search engine. There are Yandex Mail etc. (Placard = lists of performances and films etc.) (Catalogue = search specific categories such as sports, blogs etc. Being on catalogue can improve your ranking). (Metrix = Google Analytics)… You can even order a taxi from Yandex.
This is what paid advertising on Google
Localise your website from UK to Russian
Attention do not use the stairsSausage roll
Top example from the Borne films: Russian letters don’t make any sense whatsoever Left: Don’t stand under the bridgesRight:
A lack of understanding when it comes to cultural nuances are the downfall for a lot of businesses attempting to expand internationally, and the same is true with Russia…Russian postcodes only consist of numbers… buildings are divided in corpuses
English saying “A bad workman blames his tool” Russian is “A bad dancer always complains about his tight shoes”
If expanding to Russia you need mother-tongue Russian speakers to make sure your website copy is well-written
Over-optimised sites = keyword stuffing etc. Re pop-up windows: Some Russian sites have pop-up windows that appear as social notifications
[Marina]
[Marina]Russian consumers more than other major countries are put off buying online due to a desire to see and touch the product prior to purchasingtalk about why Russians mistrust ecommerce, using the bad examples from your notes. However, don’t mention the names of the websites, just why they are badAlso mention the difference in generations, using your notes
[Marina]Use notes on why delivery puts off Russians
[Marina]Cash-on-delivery, first offered by SPSR Express in 2001. SPSR are one of the leading express operators in Russia. 60%Carrying cash is much more common in Russia, not like the plastic world of chip and pins that we’re used to. A mistrust of credit and debit cards has been one of the things holding back the Russian ecommerce industry… however this is gradually changing. A study last year by MasterCard stated that 74% of Russians possessed a bankcard, with 40% using this to make a purchase Third party payment systems more popular than direct bank transfers Lack of credit/debit card usage has restricted retailers’ ability to collect payment data from their customers, adds another challenge when it comes to building consumer loyalty
[Marina]Over 2m products on saleOzon deals with the Russian ecommerce challenges by: [pick-up points, cash on delivery]Amazon and Ebay the two most established foreign retailers in Russia
[John]Tendency to presume that everyone uses the internet in the same way in every country… this is not the case [give some examples of other countries who use the internet differently]
Yandex has signed up with Twitter so that tweets now appear in the SERPs. You can also follow people on Twitter without ever leaving Yandex. Social media buttons for businesses now part of the rich snippets
Example of social media prominence in the Yandex SERPs
Russia may experience a similar high street decline like that seen in the UK… but not for some time. The UK high street decline has really been felt in the past 9 months (Blockbuster, HMV, Jessops etc). We’re at 10% ecommerce sales penetration, so working off the same model Russia is still around a decade away from this… this is not cut and dry though and would be naïve to think Russia will go same way as UK (bigger country, more rural regions etc)