The e-commerce market in Russia is constantly growing. The volume of cross-border trade in Q1, 2016, grew more than twice compared with the same period in 2015. In 2017, Russian buyers will spend 37 percent more via foreign online stores than in the past.
According to AKIT, the association of e-commerce companies, online sales volume in Russia grew by 15 percent by the end of 2016 – up to RUR 850 billion compared to the previous year. Among the main market drivers behind the growth of internet commerce is the increase in internet users and their competence, and the reduction of mobile internet costs. The key factors limiting growth are Russia’s negative economic situation and the decline of purchasing power. According to experts, the potential for the Russian e-commerce market is enormous. The online segment currently makes up a modest 4 percent of all domestic retail, which can be compared to 12 percent in the UK. The Russian online market is therefore not yet saturated, and the biggest players have not entered.
By Marina Romanova
10 Russian financial institutions including VTB 24, Alfa-Bank, Tinkoff Bank and Raiffeisen bank are planning to launch Apple Pay following the market leader, state owned Sberbank, which has launched Apple contactless payment service since last week, Russian media reports.
According to the appleinsider.com, at launch, participating retailers include ATAK, Aushan, Azbuka Vkusa, BP, Magnit, Media Market, M.Video, TsUM and authorized Apple reseller re:Store. Touchless payments are expected to roll out at Electronics store Eldorado and Burger King in the near future.
By Marina Romanova
Mail.ru, Russia’s leading LSE-listed Internet company, said Tuesday it had “became an investor in Prisma”, Russian and international media quoted Russian billionaire Alisher Usmanov, the owner of the firm, as saying. The news came out just over a week the new app hit the market. Mail.Ru reportedly bought a 10 percent stake amounts to US$2 million. The investment went through My.com, Mail.ru Silicon Valley-based subsidiary launched in 2013.
Gagarin Capital, a California-based fund with Russian roots, and XBT, an international Internet hosting company also reported to participate in Mail.ru investment.
Prisma, the new iOS photo art app, was gone viral in post-Soviet states, including Russia, Estonia, Kazakhstan, Latvia, Moldova, Ukraine and Uzbekistan the days after launch but has already garnered some 1.6 million downloads.
By Marina Romanova
Siberian Irkut Corp. assembling plant, part of the Russian state-run United Aircraft Corporation, rollout a new mid-range passenger jet MC-21-300 this Wednesday in corporation’s home city of Irkutsk, corporation press release said.
The much-anticipated new aircraft was named as a successor to the Tu-154, the legendary Soviet-era trusty beast which had faithfully served then only national carrier Aeroflot since the 1960s. There is a hope that new MC-21 with nearly 25 percent lower fuel consumption than other aircraft in its class could compete with the A320neo and Boeing 737 MAX.
The a twin-engine short- and mid-range narrow-body passenger jet, MC-21 is available in two versions —the 200 and 300— which seat 132 and 163, respectively, in a standard two-class layout, or a maximum 165 and 211 seats. Unlike the old Soviet designs, the new jet is built with a significant amount of composite materials that help reduce weight and enhance fuel efficiency. New jet also has an enlarged fuselage (4.06 meters versus 3.96 and 3.75 meters in the A320 and Boeing 737, respectively), which means larger passenger and luggage compartments. Continue reading…
By Marina Romanova
The largest ever stand-alone mobile solar power plant with capacity of 1.2 MW entered into commercial operation near the Bukhara city of Uzbekistan. The new solar power plant, launched by international oilfield service group ERIELL in collaboration with the United Arab Emirates’s ENESOL, has no analogues in the Central Asia and former Soviet Union so far.
The solar plant provides energy to facilities and infrastructure in Kandym field, developed by the Russian PJSC “LUKOIL”, one of the world’s leader of exploration and production of the petroleum products (accounts to 16.4 percent of all Russian crude oil production and 15.7 percent of Russian crude oil refining).
Use of the most advanced solutions and technologies for solar energy generation allowed to bring the total plant capacity to 5.000 kW during daylight hours and to 1.000 kW at night. “The plant’s capacity is enough to provide uninterrupted energy for a populated area of 1,500 people,” the ENESOL said in its statement. Company develops and implements projects in “green energy” for domestic and industrial needs in remote places, mountainous and desert areas.
I don’t see other companies using EDI so why should I?
Because EDI is a common back-office function, it is often not visible to the end-user but its usage is felt everywhere. Also, while EDI is rather new in Russia, companies are still learning about the possibility and many are not aware of the capabilities of EDI and that it can be implemented in most any organization. Soon, like in the West, EDI will become commonplace in most companies. Continue reading…
By Alexey Kozlov and Dmitry Slinkov
Following the global trend of digitalization, the Russian Federation enacted legislation that allows companies to carry out an electronic exchange of legally valid documents, such VAT invoices, goods acceptance protocols and service acceptance protocols. The banking industry has been a pioneer and key driver in the electronic document interchange, aiming to reduce their operating costs by switching to digital documents and transactions.
Successful experience of the banking industry has prompted the establishment of a regulatory framework and an e-government which is currently expanding the range of its electronic services. It has also become possible to simplify the document exchange process between organizations and government agencies and between organizations themselves. Continue reading…
By Paul Sprague
For quite some time, there has been a movement in Europe and the United States towards creating an electronic document interchange (EDI) between companies that would reduce cost and improve accuracy in the long term. This movement was started with the implementation of communication standards in the mid 1980’s followed by legislative changes which gave credibility to such systems and then finally acceptance and implementation in the marketplace across a wide range of industries. Today, EDI is an integral part of many company’s operating structures. Some common examples are the insurance industry, credit bureaus and suppliers to retail outlets.
The insurance industry widely makes use of EDI. This process is initiated when the medical facility sends data about patients and services through secure channels to the insurance company for claims processing. The benefits of EDI are easily visible due to the volume of documents that are exchanged and the amount of data that is processed on a daily basis. EDI allows insurance companies to save money and to remain competitive and it has been widely adopted in this industry. Continue reading…
Oct. 11 – Russian internet, or Runet, has been labeled the fastest-growing Internet economy in Europe and now represents 1 percent of the country’s GDP, according to a recent report released by the Moscow Higher School of Economics and the Russian Electronic Communications Association.
According to the report, Internet businesses are demonstrating strong sales across the board in areas ranging from website development to online marketing. The value of the web economy in the country will grow 30 percent to 720 billion rubles (around US$23.2 billion) by the year-end 2012, the report says. Continue reading…
Sept. 21 – Russian entrepreneurs have shown little desire to pass their companies onto their children, according to a survey released on Tuesday by Swiss banking giant UBS and Campden Research.
The research polled 22 businessmen domiciled in Russia who have a net worth of about US$50 million each. The total revenue of the businesses of 14 of the respondents was between US$50 million and US$100 million. In 2011, the survey sampled 19 people in a similar wealth bracket. Continue reading…