The results of 2017 showed that the food product segment of online trading is developing faster than any other segments of retail sales. Analytics from INFOLine believe that in the next 5 years, this trend will continue, and by 2022 the scope of this part of the market might face a ten-time grow.
As INFOLine informs, last year the share of the food product segment of Internet commerce in Russia totaled almost 25 billion RUB. About 15 billion rubles came from Moscow and the Moscow region. As for the total scope of the market for online trading of tangible goods (including non-food items), in 2017 it amounted to 1.2-1.5 trillion RUB. These figures show a segment growth of 20-23% on average.
The deciding factor in the rapid development of the Internet market of goods should be the adoption of a bill that legalizes the sale of alcohol through the Internet. If this happens, the profitability of the online sales industry will increase dramatically, which is not surprising: alcohol is one of the most highly profitable categories of everyday goods. At the same time, experts do not share the fears that this innovation will lead to an increase of the consumption of alcohol in the country.
Today, consumers can purchase online products from Auchan, SPAR, “Perekrestok” (Crossing), “OKEY”, “Miratorg”, “Azbuka vkusa” (The ABC of Taste), “Globus”, and “Monetka” (A Coin). In addition, food products can be bought at “Yulmart”, Ozon and Wildberries, although these online stores specialize in non-food products. The management of networks “Lenta” and “Victoria” (supermarkets “DIXI”) is considering the development of the online trading sector.
One of the first online food stores “OKEY” opened in March 2015. Now the network launches the project “OKE-Auto”: online orders in hypermarkets can be taken without leaving the car.
In March 2017, the online supermarket “Perekrestok” of the X5 Retail Group was opened in Moscow. A regular store is integrated with the dark store, working with the collection and delivery of online orders.
In September of the same year, a similar format was tested by the Auchan network. In fact, the innovations touched upon only the sale of beverages, confectionery and groceries, but soon the retailer is planning to organize the online trade of other products.
Agroindustrial holding “Miratorg” also sells its products online. About 400 food items are represented at the online store.
In the United States and Europe, products from offline stores have been operating successfully for a long time. In Russia, such services have started to appear during the last 2 years: in Moscow it is Instamart, in St. Petersburg it is iGooods. Such steps in the development of the industry suggest that in the close future, Russians will buy products online as often as they do the shopping in regular stores.
Omnichannel retail and online business is a new trend of the fashion segment. According to RBC, their own online stores have already launched 59% of the players.
The growth rate of the number of web projects in fashion-retailing has decreased, in comparison with the previous year. At the same time, the brands entering the Russian e-commerce market have rather high quality level: online purchases are already available, for example, with United Colors of Benetton, Mustang Jeans, lady & gentleman CITY and many others.
This process is expected to continue. A lot of well-known companies announced plans to launch online stores, including GEOX, Elena Furs, GANT, M.Reason, Elis, Stockmann, Cacharel, Gloria Jeans. Many of them rate online projects important within their development strategy, expecting sales of the Internet to be comparable to those of the major offline stores.
Experts note that when it comes to Runet, brands face a number of challenges. First of all, this is a need to regain the audience. Strong offline positions are not transferred online automatically – the network has its own competition and major players. And the key tool in the struggle for the client is a web directory. It is necessary to fully reflect the characteristics of the products so that they would be sufficient for making a decision about the purchase, as well as bring them to a unified form for the convenience of search and comparison. Since the site and directory are the only channels enabling the choice of a potential buyer in favor of the product (or, potentially, disfavouring it), a great deal of work lies ahead of the fashion-retailers for their online success.
Mastercard launches a project that has no analogues in Russia for now: the owners of bank cards will have the possibility to withdraw cash at the stores of some major retailers. Proceedings of the St. Petersburg International Economic Forum informed about this.
The corresponding memorandum will be signed on June 7, 2018.
Similar projects are already functioning in the US and Europe. The service is entitled “Purchase with Cash Back”, that is, literally “buying with cash withdrawal”. It works in the following way. The customer purchases goods at the store of the trading network participating in the project. While making payment with a card, the customer informs the cashier of the required amount for withdrawal. The amount of money does not matter (for example, if the price of a commodity is 1000 rubles, the cash may be 5000 rubles). After the transaction is approved by the issuing bank, the bank itself withdraws the total amount from the client’s account (in our example – 6000 rubles). So, in order to use the service, you will need to make a purchase.
When making an operation, the shop charges a commission. Exact rate is not yet known, but in the US it ranges from $ 1 to $ 3.
The benefits of innovations for retailers are obvious. Apart from additional profits at the expense of commissions, this makes savings on collection: when the cashier receives less cash, costs will be reduced. With banks everything is not so clear. Representatives of some financial organizations believe that cash settlements are becoming less relevant, and if withdrawal of funds is required, customers are accustomed to using an ATM. In addition, with the introduction of the project, the bank will lose one of the channels of promotion (still considering the same ATMs, which help to offer some products).
So far, the project has been supported by the Russian Standard Bank and Metro Cash & Carry: cash withdrawals will be available at the retailers’ franchise chain “Beans”. It is currently represented by 340 stores in 20 cities. There is no information on other trading networks (“Magnet”, “Tape”, “Dixy”). It is known only that “Auchan” refused to participate in the project. The Euroset management is also considering the provision of “Purchase with cash back” services to the clients. V. Lukanin, Vice President of the company, is confident that the service will be in demand.
Visa is also considering the similar project. A company representative shared information that a similar service is planned to be offered to banks.
Legal aspects of innovation are regulated. The Federal Antimonopoly Service, having received the Mastercard company application, believes that the implementation of the project does not violate the requirements of the legislation.
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