The pandemic accelerated the pace of growth for Russian e-Commerce

Coronavirus Pandemic will increase the dynamics of growth of Russian e-Commerce Data Insight analysts said in a report seen by the RBC. From 2019 to 2024 the average annual rate of growth will amount to 33.2 per cent, in five years, the volume of sales of goods online will increase from 1.7 trillion to 7.2 trillion virtually any (inclusive of VAT). Without due to the pandemic mode of isolation of organic growth from the investments in e-Commerce”s largest players would be 6.6 p. p. less and its volume in 2024 amounted to only 5.6 trillion.

In the years 2011-2019 annual growth rate was equal to, according to Data Insight, 28%. Over the years the sale of goods via the Internet has grown from 235 billion to 1.7 trillion virtually any.

Data Insight analysts cite several factors, such as the coronavirus changed the market of Internet trading.

Three months of isolation has resulted in online shopping at least 10 million people. The majority of new buyers, according to Data Insight, after the lifting of restrictions on movement will continue to make purchases via the Internet.

The greatest contribution to the development of the industry will make online sales of daily consumer goods: in this category, making up more than half of all retail trade in Russia, still the lowest percentage penetration in online Commerce. In the first half of 2020 online sales of consumer goods increased compared to the same period last year by 4.3 times.

Falling purchasing power only affects the reward consumption, whereas regular online purchases grow at the expense of cannibalising offline sales.

Isolation has led to the fact that consumers made more online shopping than usual, each time spending more money. This behavior will continue for another few months, buyers will avoid the crowded traditional retail outlets.

Forced to move to remote work will entail the revision of many companies, office politics: 5-7 million people in Russia can go to remote working, some of them may leave cities, which will give impetus to the development of Internet Commerce in the regions.

Major players in Russian e-Commerce company Ozon and Wildberries — agree that the development of the market accelerated. From April to June, the audience of buyers Wildberries, according to the representative of the retailer, increased by about 6 million and has reached 30 million registered users. In April of this year, turnover of Ozon amounted to almost 200%, according to a company representative. According to her, at the peak of the pandemic in April, the number of new first-time customers who purchase on the platform increased compared to the same period in 2019 almost half, and most of these customers not only make repeat purchases in June and July, but also takes a subscription to the premium service.

In the second quarter of this year, sales of beauty products grew year-on-year to 208%, toys by 256%, goods for the home and garden — 320%, books and stationery — by 496%, and food — just the order enumerates a representative of Wildberries.