Rieker
Internet crisis picks up
15.08.2014 2472

Internet crisis picks up

The financial position of the largest Internet retailers in Russia will deteriorate so much that in the next six months or a year, this market will face serious changes: from mergers and acquisitions to rolling bankruptcies, similar to those occurring in the tourism market. According to the experts of the Izvestia newspaper, in e-commerce, all large Internet sellers in Russia are potentially unprofitable. If until now they managed to live and expand through investments, then by the end of the year the situation may change dramatically. The growing losses of large Internet retailers have been a characteristic feature of the Internet commerce market in recent years. So, in 2013, the largest online store in Russia in terms of income, Ozon.ru, increased its revenue by 1 billion rubles (from 6,4 billion rubles to 7,4 billion), while the company's loss increased from 610 million rubles in 2012 to 619,7 million. Back in 2011, the net loss was 211 million rubles. Every year, losses are growing for another notable player, Vikimart, Maxim Faldin: in 2010, the company, with revenue of 6,7 million rubles, received a loss of 18 million, in 2012, revenue amounted to more than 272,6 million rubles, and the net loss reached marks of 320 million rubles.

However, not all major players suffer from the same symptoms: for example, OOO Kupishuz (Lamoda.ru) recorded a profit of 2,8 billion rubles with revenues of 5,3 billion rubles, but this result can be explained by the fact that in In 2013, a group of investors led by Leonard Blavatnik invested $ 130 million in the project, these funds were planned to be directed to operating activities. In the Lamoda report for 2013, "other income" was recorded in the amount of 4,5 billion rubles, without taking them into account, the company would also be at a loss. Fyodor Virin, the founder of the research agency Data Insight, confirms that losses have increased for all dynamically developing Internet retailers. This is due to the growth of companies, an increase in the volume of their purchases, as well as securing future purchases under the current budget. All major online sellers in Russia are unprofitable, the expert says.

The owner of the Liveinternet.ru platform, German Klimenko, notes that investors continue to invest in projects only because huge funds have already been poured into the business. At the end of the year, the Internet retail market is expected to experience shocks similar to the current collapse of the tour operator market, Klymenko believes. He predicts a drop in pre-New Year sales in November-December, through which online sellers usually cover their seasonal losses. Recent reports about the tense financial situation in the country, including in connection with sanctions, make people think about saving and saving, the expert believes. Representatives of food retail and restaurateurs are also talking about a decrease in consumer activity.” For e-commerce, even a 15% reduction in sales is critical, says Klimenko. “Combined with accumulated losses, this could put online retailers in real financial trouble. The situation is fueled by the policy of the Central Bank: as a result of the tightening of the requirements of the Central Bank, Russian banks are more selective in providing loans to legal entities and individuals. Debt will be superimposed on the drop in sales and all the gaps will emerge. Sites selling everyday goods, as well as those selling electronics, will be the first to be hit. To avoid bankruptcy, by 2015 e-commerce players will be forced to unite.

The financial situation of the largest Internet retailers in Russia will deteriorate - so much so that serious changes await this market in the next six months or a year: from mergers and acquisitions to fan ...
5
1
Rating

Latest News

Export of leather and footwear products to Russia from Uzbekistan in 2022 increased by 61%

According to the Uzcharmsanoat association, over the year, exports of leather and footwear products from Uzbekistan to Russia increased by 61% and reached $82,5 million in 2022. And next year, the association predicts an increase in exports of these products to Russia to…
05.12.2022 136

Camper launches regenerative wool Wabi slippers

Spanish brand Camper celebrated the 22nd anniversary of its Wabi slippers with a limited edition collection of regenerative wool slippers made in Mallorca.
05.12.2022 124

Pantone names 2023 color of the year

The Color of the Year 2023 is “powerful, fearless, inspiring” as Pantone 18-1750 Viva Magenta Carmine Red is described. Its other name is “new vibrating ...
03.12.2022 309

Fila collaborates with Haider Ackermann

South Korean company, manufacturer and supplier of sportswear Fila has released a collaboration with French designer of Colombian origin Haider Ackermann. The capsule includes men's and women's clothing (colorful leggings,…
02.12.2022 356

Pakistan ramps up shoe exports

Footwear exports from Pakistan increased by 2022% between July and October 82, a year-on-year growth of 31%, while leather exports increased slightly, according to the Pakistan Bureau of Statistics (PBS)…
02.12.2022 364
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning