1. The online retail market in Russia is growing rapidly but still represents less than 2% of total retail sales, indicating significant potential for future growth. 2. Major product categories for online shopping in Russia include books, clothing, consumer electronics, and food. Leading companies in each category are cited along with their 2010-2011 sales figures. 3. A BCG matrix shows where different companies fall in terms of market share and growth rate, identifying "stars," "cash cows," and other categories.

1. Russia – online retail market overview
Key market figures Market potential 2015
(2011)
110M
internet
Population 140 M
Internet users 75M users
Internet penetration 55% @80%
penetration
Total retail (USD) 632,5B
Online retail (of total) <2%
20B
Online retail (USD) 10B e-commerce
(Marketplaces share 1,6%) market
@2,2%
Credit card penetration 30% of total retail
Cash on Delivery 80%
Perspective 300% increase of non-cash payments, big players develop their own logistic
and delivery services.
Source: Goskomstat, Data Insight, Expert opinions, РБК.research, etc.

2. Russia – online retail categories & players
AVG monthly turnover by segment Top players by category 2010-2011
Competitors Category GAV 2010 GAV 2011 Visitors Marginality
Ozon.ru Books 120 000 000 155 000 000 9 400 000
Books - 40%
Bolero.ru Books 33 333 333 170 000 40%
Otto + Quelle Clothes, etc 90 000 000 130 000 000 10 200 000
>70%
KupiVIP.ru Clothes, etc 80 000 000 160 000 000 8 600 000
35-50%
notik.ru Computers 36 666 667 510 000 5%
Groupon.ru Coupons 2 333 333 96 000 000 19 000 000 50-100%
Kupikupon.ru Coupons 450 000 30 000 000 11 000 000 50-100%
Biglion.ru Coupons 38 400 000 29 000 000 50-100%
Holodilnik.ru Electronics 100 000 000 185 000 000 1 200 000 12%
Uti-note.ru Electronics 40 000 000 125 000 000 350 000
3-5%
Utkonos.ru Foods 333 333 333 980 000 >16%
Top-shop.ru Market 30 000 000 36 000 000 1 400 000
>50%
Dostavka.ru Market 26 666 667 40 000 000 940 000 10-20%
Wikimart.ru Marketplace 11 157 143 43 333 333 3 000 000 6%
Molotok.ru Marketplace 81 462 407 105 000 000 4 900 000 3%
Furniture
Child
Mobile
Clothes
Food
Electronics
Autoparts
Computers
Source: Source: inSales, Data Insight, Expert opinions, Internal research service of AMEG.

3. Russia – eCommerce BCG matrix
350.00%
problem stars
300.00% childrens
250.00%
Molotok
200.00%
Wikimart
Growth
150.00% Utinet
dogs cash cows Otto + Quelle
100.00%
Boutique
50.00% Ozon
0.00%
0.00% 0.50% 1.00% 1.50% 2.00%
-50.00%
Market Share

4. Russia – B2C market entry options
1. Mobile devices market growth
• Implement verticals for electronic devices according to dealextreme.com
model
• 30% margin in drop-shipping model
2. Shoes, clothes and accessories
• Serve on-line shops
• All required business processes in place to offer turnkey solutions to offline
companies
• One of the options to set up partnership with exclusive distributor of clothes
3. Own logistic and delivery
• Invite to our marketplace sellers from: China, Turkey, US, Poland
• Implement our own Delivery Service and provide guarantee for delivery
• Find major logistics partner for consolidation of shipments and delivery

5. Russia Fashion & Lifestyle
Competitors GAV 2010
Media & Books 90 000 000
Consumer Electronics Otto + Quelle
Competitors GAV 2010 Competitors GAV 2010 Wildberries.ru 43 333 333
Holodilnik.ru 100 000 000 Ozon.ru 120 000 000 Boutique.ru 40 000 000
Uti-note.ru 40 000 000 Pleer.ru 60 000 000 Laredoute.ru 40 000 000
notik.ru 36 666 667 Sapato.ru 6 812 000
Sotmarket.ru 34 952 000
Citilink.ru 30 000 000
e-tailers
technopark.ru 30 000 000
Consumer Media & Fashion
Ulmart.ru 26 666 667 Electronics Books &
Lifestyle
003.ru 23 333 333
Shopping
club
Shopping Clubs
General e-tailer
B vertical Competitors GAV 2010
Competitors GAV 2010 C
KupiVIP.ru 80 000 000
Top-shop.ru 30 000 000 general
club-sale.ru 26 666 667
Vasko.ru 30 000 000
 Dostavka.ru
Techhome.ru
26 666 667
16 004 000 Price Comparison
Daily Deals
Marketplace marketplaces
Competitors GAV 2011 Competitors GAV 2011
Molotok.ru 105 000 000 Competitors GAV 2011 Groupon.ru 96 000 000
Wikimart.ru 43 333 333 Yande .Market only CPC Kupikupon.ru 30 000 000
model
Biglion.ru 38 400 000
Price.ru only CPC
model
Note: Online web presence of traditional offline retailers are not included in this analysis