Russian cross-border e-commerce market overview and building materials demand analysis

As a federal republican constitutional country consisting of 22 autonomous republics, 46 states, 9 border regions, 4 autonomous regions, 1 autonomous prefecture and 3 federal municipalities, Russia’s economy and market have unique characteristics. Over the past few years, Russia’s Internet penetration rate has increased significantly, from 37.1% in 2010 to 70.4% in 2015, with the number of Internet users reaching 82.9 million. With the rapid development of 4G networks and the maturity of mobile payment systems, Russians’ consumption habits have shifted to mobile applications, driving the rapid growth of the smartphone market. In 2015, the sales volume of smartphones in Russia reached 26.15 million units, accounting for 60.5% of the overall mobile phone sales.

The development trend of cross-border e-commerce

The Russian cross-border e-commerce market has shown strong growth momentum in recent years. According to statistics, Russian online consumers contributed 148 million orders in 2015, of which cross-border sales reached US$3.4 billion, an increase of 55% from 2014. Although the Russian domestic market grew slightly in 2015, some categories of goods were affected by the economic crisis. At the same time, most large offline retailers and manufacturers continue to develop online and mobile sales channels and related infrastructure. It is worth noting that cross-border e-commerce from China is growing rapidly, accounting for 80% of orders in the Russian market.

Main e-commerce platforms

There are several well-known import cross-border e-commerce platforms in the Russian e-commerce market, including AliExpress Russia, Wildberries and Lamoda. These platforms not only provide Russian consumers with a rich and diverse product selection, but also provide good opportunities for Chinese merchants who want to enter the Russian market.

AliExpress Russia

As an e-commerce platform under Alibaba, AliExpress Russia has a local version in Russia and is currently one of the largest e-commerce platforms in Russia. The platform supports Russian currency transactions and provides localized payment methods and logistics services.

Wildberries

Founded in 2004, Wildberries is currently one of the largest retailers in Russia. It works with third-party logistics companies to ensure goods reach customers quickly.

Lamoda

Lamoda, founded in 2011, is known for its multi-language support (including Russian, German, French, etc.). In addition, Lamoda also has multiple warehouses and distribution centers to provide customers with high-quality after-sales services.

Building materials market demand

MosBuild is the leading construction and decoration materials exhibition in Russia and even Eastern Europe. In 2019, MosBuild attracted more than 77,000 professional visitors, with exhibitors from 40 countries and regions, with a total of about 1,200 exhibitors. Since the completed area of ​​industrial buildings and commercial buildings in Russia has reached 130 million square meters and 90 million square meters respectively, real estate development requires a large amount of building decoration materials. However, due to historical reasons, the Russian building materials manufacturing industry is underdeveloped, and a large amount of materials need to be imported from abroad. Product prices in European countries are higher, giving Chinese building materials products a competitive advantage in the Russian market.

To sum up, both the Russian cross-border e-commerce market and the building materials market have huge potential and room for development. For Chinese companies hoping to expand into the Russian market, it is crucial to understand local consumer preferences and choose an appropriate e-commerce platform. At the same time, paying attention to the demand changes in the Russian building materials market can also bring more business opportunities to enterprises.