Countries Covered: Russia
Publication Date: 22/03/2022
Questions Covered in the report:
- What forecasts are made for Russia’s E-Commerce Sales growth and online retail sales value until 2024?
- How did the COVID-19 pandemic affect Russia’s B2C E-Commerce sales value?
- What was the ratio of Russia’s domestic B2C E-Commerce Sales compared to cross-border B2C E-Commerce sales?
- Which product categories are preferred by the online shoppers in Russia?
- How did the behavior of Russian online shoppers change compared to the beginning of the COVID-19 pandemic?
According to findings in the new report “Russia B2C E-Commerce Market 2022” from yStats.com, Russia is among global leaders in terms of retail M-Commerce growth. The secondary market research firm from Hamburg, Germany, cites market statistics to demonstrate strong, continuous growth in Russian B2C E-Commerce since the outbreak of the COVID-19 pandemic. Driven by the twin developments of mobile and cross-border E-Commerce, online retail sales in Russia are setting new records.
While Russia’s B2C E-Commerce market is growing, its retail E-Commerce market is projected to shrink
Russia ranked as the second-fastest growing B2C E-Commerce market in Europe in 2021. The market data cited in this yStats.com report indicates that, on the one hand, domestic cross-border E-Commerce sales in Russia made up close to 90% of total B2C E-Commerce sales, whereas in 2019 they comprised approximately 70%. The ongoing COVID-19 pandemic is the biggest contributor to this growth. On the other hand, the share of B2C E-Commerce sales within the overall retail E-Commerce sales value in Russia is expected to decrease by 2024.
Despite the ongoing COVID-19 pandemic, more Russian consumers are shopping exclusively in physical stores
Most of Russia’s online shoppers are young to middle-aged. Indeed, 25-to-44-year-olds accounted for more than one-half of digital buyers in Russia in 2021. Surprisingly, spending on “Travel, Mobility and Accommodation” was by far the highest consumer E-Commerce spending category of 2021, despite the ongoing COVID-19 pandemic. Furthermore, more Russian consumers report shopping exclusively in physical stores in 2021 than in 2020.
Russia’s emerging subscription service market
Within the CIS, Russia ranks fourth for smartphone penetration. Indeed, Russia’s share of smartphone connections was greater than that of the entire CIS region in 2020, but the yStats.com report explains why decline is forecasted by 2025. Russia’s subscription market is expected to reach almost half a billion during 2024, growth fueled by the stated preference of almost two-thirds of Russians for domestic subscription services over international providers. The growth rate of Russia’s subscription market, however, is forecast to decline by over 60% annually until 2024.