Internet crisis picks up
15.08.2014 2108

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 colossal funds have already been poured into the business. At the end of the year, the online retail market is expected to experience a shock akin to the current collapse of the tour operator market, Klimenko said. He predicts a drop in pre-New Year sales in November-December, through which online sellers usually cover their seasonal losses. The latest reports about the tense financial situation in the country, including in connection with the sanctions, make people think about saving and saving, the expert said. Representatives of food retail and restaurateurs also speak about the decline in consumer activity. "

For e-commerce, a reduction in sales by even 15% is critical, says Klimenko. - Coupled with the accumulated losses, this could threaten online retailers with real financial problems. The situation is heated by the policy of the Central Bank: as a result of the tightening of requirements of the Central Bank, Russian banks are more selective in providing loans to legal entities and individuals. Debt will superimpose on falling sales and all gaps will emerge. The first to be hit are sites selling FMCG products, as well as those selling electronics. To avoid bankruptcy, e-commerce players will have to unite by 2015 ”.
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 ...

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