Eastern Europe B2C E-Commerce Market 2014

Eastern Europe B2C E-Commerce Market 2014

Growth of Online Retail in Eastern Europe Attracts Global Investors

Eastern Europe accounted for a small one-digit share of the global B2C E-Commerce sales last year, dwarfed by the large double-digit shares of North America, Asia-Pacific and Western Europe. However, it terms of growth year over year, some of the nations of the region are among the global leaders.

The leading emerging markets in this region in terms of market size are Russia, Turkey and Poland. Russia and Turkey also scored high in year to year growth of B2C E-Commerce in 2013, but were outpaced by close to 50% growth in Ukraine. Some smaller markets, such as Estonia and Slovakia generate significantly smaller sales of a few hundred millions of euros, but outperform the rest of the region in terms of ICT infrastructure metrics, such as Internet penetration.

Among the important trends spreading throughout the region is the development of mobile shopping. M-Commerce is driven by growing smartphone and mobile Internet penetration. In countries such as Ukraine and Turkey over 40% of smartphone owners already have experience with mobile shopping. Another important movement is cross-border B2C E-Commerce. For example, in Slovenia and the Czech Republic close to half of all online shoppers made purchases from foreign online stores in 2013. Regulation of online retail sales is also a trend; the past two years were marked with adoption of important new rules affecting E-Commerce in several Eastern European countries including Russia and Belarus.

Looking at payment methods, the report finds that cash on delivery still predominates in the majority of B2C E-Commerce markets in the region, as it is the most used payment method in Russia, Greece, Czech Republic, Ukraine, Hungary, Romania, Slovakia and Belarus. However, for cross-border purchases, credit cards are often used. For example, in Romania, over 90% of online shoppers paid with cash in 2013, but international transactions account for more than half of the credit card payments made for goods and purchases online that year.

The fast growing markets of Eastern Europe have attracted the attention of international B2C E-Commerce players and investors. The region’s largest market, Russia, drew hundreds of millions of dollars in B2C E-Commerce investment over the past several years from companies such as JP Morgan, Kering, IFC, Tiger Global Management, Naspers and others. While on first stages the major beneficiaries were online clothing retailers such as Lamoda and KupiVIP, in 2014 the trend favored online shops of goods for children, such as Esky and Mamagazin. Also the second largest online retail market in the region, Turkey, has raised significant interest of international and local investors, mostly in the clothing sector featuring such players as Markafoni, Modanisa and Lidyana.
1. Management Summary

2. Regional
•Breakdown of B2C E-Commerce Sales, by Regions, incl. Eastern Europe, in %, 2013 & 2018f
•Online Shopper Penetration, by Region, incl. Eastern Europe, in % of Internet Users, 2013 - 2018f
•B2C E-Commerce Sales, in USD billion, 2013 - 2018f
•B2C E-Commerce Sales, by Selected Countries, in EUR billion, 2013
•B2C E-Commerce Sales Growth, by Selected Countries, in % Year-on-Year Change, 2013
•Internet User Penetration, by Selected Countries, in % of Individuals, 2009 & 2013
•Smartphone Owner Penetration on Total Population and Mobile Shopper Penetration on Smartphone Owners, in %, by Selected Countries, May 2013
•Online Shopper Penetration, by Eastern European Countries in the EU, in % of Internet Users, 2013
•Cross-Border Online Shopper Penetration on Total Online Shoppers in the EU, in %, by Eastern European Countries, 2013

3.Russia (Top Country)

3.1. Trends
•Top 10 Countries Worldwide by B2C E-Commerce Sales, incl. Russia, Ranked by 2014f, 2012 - 2017f
•Top 10 Countries Worldwide by B2C E-Commerce Sales Growth, incl. Russia, in %, 2013
•Top 10 Countries Worldwide by Growth of Internet Users, incl. Russia, by in % Growth in Q4 2013 Compared to Q4 2008
•Breakdown of B2C E-Commerce Sales by Product Categories, by Selected Countries, incl. Countries in Asia-Pacific, in %, 2012
•B2C E-Commerce Sales, by BRIC Countries, incl. Russia, in USD billion, 2013
•Annual Spending per Online Shopper, by BRIC Countries, Incl. Russia, in USD, 2013
•Internet User Penetration, in % of Population, by BRIC Countries, incl. Russia, 2013
•Top 5 Countries in Europe by B2C E-Commerce Sales, incl. Russia, in EUR billion 2013 & 2014f
•M-Commerce Overview and Trends, 2014
•Number of Mobile Internet Users, in millions, December 2012 & December 2013, and Breakdown of Mobile Internet Users, by Gender and Age Group, in %, December 2013
•Mobile Shopping Activities, by Smartphone and Tablet, in % of Mobile Internet Users on Smartphone/Tablet, May 2013
•Cross-Border B2C E-Commerce Overview, 2014
•Cross-Border B2C E-Commerce Sales of Physical Goods, in RUB billion and in % of Total B2C E-Commerce Sales of Physical Goods, 2012 & 2013e
•Number of Cross-Border Online Purchases, in millions and in % Year-on-Year Growth, 2012 & 2013
•Cross-Border Online Shoppers, in millions and in % of Total Online Shoppers, 2012 & 2013e
•Breakdown of Cross-Border Online Shoppers, by Age Group, in %, 2013e
•Online Shopping Destinations Purchased From, incl. Local Region, Other Regions in Russia, CIS, Europe and Other Foreign Countries, in % of Online Shoppers, 2013
•Online Shopping Destinations Purchased from, incl. Cross-Border, in % of Online Shoppers, 12 Months to September 2013
•Most Purchased Product Categories in Cross-Border B2C E-Commerce, in % of Cross-Border Online Shoppers, 12 Months to September 2013
•Problems Encountered when Shopping Online Cross-Border, in % of Cross-Border Online Shoppers, 12 Months to September 2013
•Reach of Internet User Audience by Top 4 International E-Commerce Players in Total, Compared to Top 4 Local E-Commerce Players in Total, October 2012 & October 2013
•Breakdown of Channels Most Used to Purchase Luxury Goods, incl. Online, in % of Luxury Consumers, 2013
•Share of Top Luxury Brand Websites Offering Website in Russian Language, in %, July 2013
•Share of Top Luxury Brand Websites Offering International Shipping to Russia, in %, July 2013

3.2. Sales & Shares
•B2C E-Commerce Sales, by Sales of Digital Goods and Tickets and Sales of Physical Goods, in RUB billion, 2010 - 2013
•B2C E-Commerce Sales Forecast, in RUB billion, and in % Year-on-Year Change, 2014f - 2018f
•B2C E-Commerce Sales Forecast, in RUB billion, by Comparative Estimates, Ranked by in % CAGR, 2013 - 2018f
•B2C E-Commerce Sales Forecast, in USD billion, by Comparative Estimates, Ranked by in % CAGR, 2013 - 2016