Russia braced for massive ecommerce switch

Russia’s young generation could be a key driver towards a massive switch to ecommerce in the future.

That’s according to a candid interview with Oleg Ryazhenov-Siems, an ecommerce expert from the region and the man behind the online strategy of Svyaznoy, the second largest Russian consumer electronics retailer.

Cited by, he believes that expanding a business to operate in different channels is a ‘necessity’. Furthermore, those who shop online and offline represent two different markets, so by utilising both, firms can engage with two separate audiences.

Ryazhenov-Siems also hailed Svyaznoy’s increase in sales thanks to their venture in ecommerce.

“From $25 million in 2009, we grew to $120 million in 2011. That’s the 2-year period dynamics,” he said, reported by “In 2011, ecommerce accounted for 5.6 per cent of Svyaznoy’s total sales, up from 3.6 per cent in 2010. This is 3.5 times more than the average market ratio.”

He also believes Russia’s ecommerce market will ‘grow explosively’ in the coming five years as more and more consumers look to make an online payment for goods.

“There will be more and more players coming into the market, with many more customers purchasing. The regions, where the current average Internet penetration doesn’t even reach one third, will develop at high speed,” he added.


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