Internet crisis picks up
15.08.2014 2744

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

Crocs and Irish brand Simone Rocha launch first collaboration

Simone Rocha has redesigned three classic Crocs silhouettes, including the Siren Clog, the iconic Croc and the Quick Trail. The collection will go on sale on April 10. Crocs models, interpreted by the Irish designer, are decorated with the signature…
29.03.2024 174

Fashion house Valentino has named its new creative director

Italian designer Alessandro Michele, who left Gucci last November, has been appointed the new creative director of the fashion house Valentino. Valentino announced the new appointment about a week after the resignation of the previous one...
28.03.2024 174

Results of the series of International Shoe Exhibitions SHOESSTAR AUTUMN-WINTER 2024/2025

The next season of the SHOESSTAR footwear and leather goods exhibitions has ended - autumn-winter 2024/25. This time the series included 5 exhibitions, which took place from mid-February to mid-March 2024 in Khabarovsk, Yekaterinburg,…
28.03.2024 191

EKONIKA increased revenue by 51% in January-February 2024.

The EKONIKA network notes a significant increase in revenue; in the first two months of 2024 it increased by 51%. Vice President of Novard Group of Companies (owns EKONIKA) Sergei spoke about this at the Retail 2024 conference...
28.03.2024 227

An increase in the number of new openings in the fashion retail segment is noted in St. Petersburg

According to Nikoliers, in the first quarter of 2024, the activity of tenants in shopping center areas increased in St. Petersburg. Moreover, more than half of all openings - 25 out of 45 were in fashion retail, writes...
28.03.2024 236
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning