PwC Observes Online-Retail Trends in Russia
OREANDA-NEWS. December 06, 2011. In September 2011, PwC conducted an online survey of 2,000 respondents in 11 cities of over one million people to identify main trends in consumer internet behaviour. According to the survey findings of this year, almost 92% of those surveyed were buying on the Web (in 2009 they accounted for 80%). Almost 70% of the respondents are using Internet to shop at least once every 1-3 months, reported the press-centre of PwC.
The Russians shop online less often than Europeans. For example, in the UK 28% shopped on the Web every week, whereas only 12% of PwC’s Russian respondents did so that often.
Anna Davydova, Assurance Director, Retail & Consumer industry, PwC Russia:
“The Russian online retail market is relatively young. It is developing rapidly but is still far from saturation. The key trend is expansion of the audience, both through extending geography and arrival of new players from segments that were not represented earlier. In the meantime, competition in the Russian markets continues to increase gradually, helping to improve quality of service and comfort for customers”.
Most often, respondents shopped online for household appliances, books, mobile phones, computers and software. The following showed the biggest increase in the number of shoppers: clothes and footwear (13%), video and audio (12%), online travel (11%) and entertainment bookings (10%).
The most popular payment method for online purchases in Russia is still to pay the courier; in cash this method was chosen by almost 60% of respondents in 2009, and the same number of respondents prefer to pay this way in 2011. However, paying with credit cards is gaining in popularity. In 2009 only 20% of those surveyed opted for this method, compared to 32% this year.
The most active online shoppers are young people under 25 and those between 31 and 40, who commonly hold management positions or run their own business. The frequency of e-shopping also depends on the level of income: the higher their income, the more frequently people shop online.
As to the criteria for selecting web stores, 58% of those surveyed look at prices first, 54% find the range of products important, and easy delivery was mentioned as an important factor by 44% of respondents. However, trust in a particular store, the possibility of receiving goods without having to wait for them to arrive, and a convenient return system were also ranked as critical criteria by the most active and well-off consumers.
Vardan Gasparyan, Senior Manager, Supply Chain Management, PwC Russia:
“Consumers have always preferred shopping online for two reasons; firstly, due to a wider range of products than in traditional stores, and secondly, due to lower prices. Today, in addition to these key reasons, other criteria are emerging, such as the convenience of buying online, the opportunity to compare goods and consumer-friendly delivery. It will likely be difficult for traditional retail to compete with online stores, especially in the regions, because of 'physical restrictions’.”
The key development trends in global online trade include social networks’ heavy involvement in e-commerce and the increasing use of location-based services (LBS) to attract shoppers. In addition, consumers are using mobile devices more often, both for buying directly online and for referring to Internet resources when shopping in traditional stores.
Russian consumers are following global trends: almost 60% of respondents more or less frequently shopped online using their mobile devices (smartphones and tablet PCs), and 8% do it regularly. Almost half of respondents (47%) are members of brand groups through social media. The main reason for becoming a member is to qualify for discounts (21%), and 13% join groups like these because they like a certain brand.
It is interesting to note that although half of Russian respondents always plan e-shopping in advance, almost 20% of our respondents make spontaneous purchases often or very often. This trend is usually demonstrated by inexperienced web shoppers who buy online no more than once every six months.
Russian consumers most frequently shop in online supermarkets, and 22% of respondents do it regularly. Specialised web stores were ranked as the second resource regularly used by 13% of respondents. The most unpopular places to shop for Russian consumers are the online stores of specific brands. This is because it is a relatively new trend in Russia.
In Russia, multi-channel sales are becoming increasingly popular; online and offline shopping are merging into a single process for consumers, making it very important for traditional retailers to have an online presence and allocate resources to actively support e-commerce.
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