Thursday, August 16, 2012
Russia has the largest online population in Europe – 60 million – and 15 million online shoppers. According to the data presented at the “RIF + KIB 2012" conference, there are 30,000 online stores in the Russian Internet. In total they generate $9 billion per year or 1.5% of all retail sales in Russia, which is four times less than in the U.S. and three and a half times less than in Europe. Yet the Russian e-commerce market is growing 30-50% each year and is projected to reach $16 billion by 2016.
MTS stands to tap this potential by enhancing capabilities of its online store www.shop.mts.ru. MTS is leveraging its resources as the second largest mobile retail network in Russia with streamlined logistics chains connecting 2,500 stores in over 1,000 population centers. In the first half of 2012, online sales doubled driven by the rising demand for smartphones. Smartphones currently account for 70% of online sales, portable electronic devices (including notebooks, tablets, e-readers, cameras) generate 15% of sales, basic and feature phones account for 12% of sales, and the remaining 3% of sales consist of accessories. In the first half of 2012, MTS expanded its portfolio of devices by making 300 models of phones and smartphones and over 650 models of portable electronic devices available online.
MTS delivers orders made online to 80 of Russia’s 83 regions. Most popular among customers is MTS’s “pick up in store” service, which accounts for 85% of orders. Currently, purchases are delivered “to the door” in 14 of Russia’s largest cities, but given the rising appetite of Russian customers for online shopping, the list of these cities is set expand quickly.