Russian food e-commerce grows significantly

It is reported that in the second quarter of this year, food sales in Russia's e-commerce business increased by 13%. It is expected that by 2024, the overall online sales will exceed one trillion rubles.

A typical example is the local food retail chain VkusVill. In the past six months, thanks to its convenient logistics, its online sales have increased by 437%, and its order volume ranks third in the local food category, making it this year's e-commerce dark horse.

According to the company's representative, e-commerce sales currently account for an average of about 25% of total sales. Following this trend, VkusVill has also begun to try online sales of medicines and cosmetics.

Due to the epidemic, offline stores are subject to blockade restrictions. Food, as a daily household necessity, can only be purchased online. So far, this consumption trend has not stopped.

Representatives of the business intelligence agency also believe that: " Food is becoming the fastest growing category in today's e-commerce market . According to the results of the first half of this year, online food turnover increased by 2.5 times compared with the first half of 2020 and exceeded 150 billion rubles. By the end of the year, according to our forecast, it will reach 400 billion rubles."

Relevant data shows that in the second quarter of 2021, fast-moving consumer goods accounted for the largest share of 39% in the e-commerce market , even exceeding the share of electronic products ( 33%). Among them, food and daily necessities are the most popular categories.

However, compared with mature e-commerce markets in other countries, Russia's online transaction penetration rate is still relatively low, and local shopping habits still tend to go to nearby discount stores. However, many local sellers are still optimistic about the development of e-commerce, and there is no clear boundary between online and offline, and more of a combination of the two.

Data shows that Russia's e-commerce revenue in the first half of the year has reached 670 million US dollars. The relatively underdeveloped e-commerce market also has potential. Local well-known e-commerce platforms Ozon, Wildberries, and Utkonos have all seen significant growth in sales. Moreover, Russia is also constantly improving the construction of related supporting facilities such as logistics.

Although Russia's e-commerce market is not yet fully developed, opportunities and challenges coexist. Interested sellers can also pay more attention to local platforms.

Russia

E-commerce

food