Fortune magazine Russian electricity supplier rules vary greatly

the "fortune" magazine online edition wrote today, although it seems that Russia has many elements of the development of electronic commerce, but Amazon and other overseas companies are in the country’s inaction, local manufacturers are constantly growing. This is mainly due to the country’s unique business environment, as well as local enterprises more long-term investment perspective.

below is the full text of the article:

mentioned Amazon (micro-blog), eBay (micro-blog), Google (micro-blog), many people may take it for granted that Russia will warmly welcome these foreign Internet giants. If so, Google after a hard struggle, why won only 27% of the share, far less than the local rival Yandex 61%? Why Amazon simply in the country


Russians don’t like them. Russia has 53 million Internet users, ranking first in Europe, year on year growth has reached the top second in Germany, the times of 7. Moreover, there is still much room for growth in the country’s Internet users. In addition, Russia’s personal disposable income and debt ratio is very healthy, people are also very keen on foreign products. On the face of it, this seems to indicate that the timing of the country’s e-commerce revolution has matured.

this is not to say that the Russian Internet companies are doing nothing. In addition to Yandex, imitation Craigslist model of Avito has also been far ahead of U.S. competitors in the domestic market. Although the eBay through support to get some of the benefits of Molotok, but has hit the Russian Amazon label. Even as Groupon, and other local enterprises to cooperate, but also faces fierce competition from KupiKupon, Biglion and Vigoda, some companies even in the first year of the establishment of tens of millions of dollars in revenue. In Russia, global hegemony does not seem to work, it is no wonder that the country known as the European Internet industry’s last frontier.

however, although Russia inevitably has some unique business model, but the western big companies often fail but can not simply blame the cultural conflict, of course, not only because of arrogance. It can be said that the key problem is that these companies do not understand, relying solely on the growing number of Internet users and consumer spending is still not enough to support the traditional online retail business.

although Moscow has become a modern western city, the number of billionaires ranked first in the world, but in the big city, Russia is still a lack of development of e-commerce of the necessary infrastructure — in some places even don’t know what the electronic commerce. Russia’s postal service, for example, is either too expensive or too low. Similarly, due to the high cost of bank transfers, and the lack of reliable electronic payment methods, the vast majority of consumers usually choose to use cash to pay online purchases of goods.


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