Moscow’s fast-growing e-commerce market offers opportunities to Finnish companies
High-quality Finnish products and e-commerce technology can serve millions of high-earning Muscovites and thousands of Russian online retailers. More and more Russians are shopping online, especially in the Moscow region which is the country’s commercial, financial, construction and freight hub as well as a consumer market of 20 million people with earnings that are more than double the national average. E-commerce has now become one of the key growth drivers for Moscow’s dynamic ICT sector.
Russia’s domestic e-commerce market is currently worth about RUB 650 billion or 2% of the country’s total retail market. About 20,000 online stores are registered in Moscow, which is more than 45% of the total number of online retailers in Russia. The number of online stores increased by 7% during the first half of 2016 compared to the corresponding period in 2015.
In 2015, Russia’s 30 million online shoppers generated about 148 million orders, with an average order value of RUB 4050 (USD 63.80). Cross-border online sales amounted to RUB 3.4 billion in 2015, up by an impressive 55% from the previous year.
Opportunities for technology providers and retailers
Moscow’s expanding e-commerce needs are creating new opportunities for Finnish ICT companies that provide high-quality e-commerce technologies. The local ICT sector is already very competitive so Moscow’s online retailers are looking for unique and innovative solutions to boost their business. Finnish ICT companies that have experience in internationalization and can implement international best practices can make good use of this when contacting possible new customers.
Moscow also represents a potentially huge consumer market for Finnish retailers and it comes with the advantage of the good reputation Finnish products already enjoy across Russia. The key combination for attracting Russian online shoppers is to offer high quality at the right price.
Cooperation between Finnish companies can also deliver new business opportunities. Hundreds of Finnish companies are already established and successfully operating in Russia and this can provide a good platform for partnerships as new companies enter the market.
Entering the Russian market
Finnish companies entering the Russian market for the first time also benefit from the long history of business cooperation between the two countries and Finland’s positive reputation. The main challenges for Finnish companies stem from the differences between Russian and Finnish business culture, legislation and financial regulations. A successful entry to the Russian market requires preparation and effective strategies to deal with all these issues.
Finpro’s eCommerce Growth Program supports Finnish companies in finding contacts and potential customers in Russia.
For more information, please contact:
Evgeniy Korobkin, FRCC