The personal data localization law obliging foreign companies operating in Russia to process and store personal data they collect about Russian citizens and residents on the Russian territory goes into effect today.
A lot of large companies, such as Google, PayPal, eBay, and many others, started moving their servers to Russia already in the beginning of the year, however according to the Russian Association of Electronic Communications (RAEC), only 54% of all marker players are ready to comply with the new law at the moment.
RAEC created a portal [in Russian] where they accumulated a lot of information about the law, what it means for companies and consumers, as well as implications for non-compliance. If you haven’t moved your servers to Russia, we urge you to check it out in order to assess the risks.
Bonus: Russia Beyond the Headlines shared this useful inforgaphic that nicely summarizes the situation as of today.
Despite the economic difficulties and general decrease of activity in the market, turnover of Russian e-commerce increased by 28% in the first half of 2015, reports Vedomosti [in Russian] referring to the latest research from Data Insight. The research concludes that turnover of Russian e-commerce in H1 of 2015, excluding digital goods, tickets as well as cross-border purchases, landed at 305 billion Russian rubles (approx. 3.9 BN Euro).
Russian e-commerce market has been growing at a similar pace for the last few years – 25% in 2o13 and 31% in 2014 – however the source of growth in 2015 is different. In the past the turnover of e-commerce market was increasing due to larger amounts of purchased goods. In 2015 the turnover increased mainly because ruble inflation lead to higher prices. Average cheque increased by 19% – to 4200 rubles (approx. 53 Euro), while the number of purchases – only by 9% landing at about 73 million orders, according to Data Insight.
While only a couple of years ago e-commerce purchases in Russia were mostly paid by cash upon delivery, now online payments are on the rise.
TNS Russia has recently studied the popularity of online payment methods in Russia. They discovered that 40% of all the e-money users pay from their desktop computers and mobile devices. Continue reading…
Russia’s Internet audience has been growing very quickly during the last few years. After lagging behind Western Europe in terms of Internet penetration during the 1st decade of the century, the market became fastest-growing in Europe in 2010-2011 and eventually the largest – in the middle 2012.
The latest report [in Russian] from ComScore states that in June 2015 Russian Internet population has reached 80 million people.
Mail.ru Group, the owner of Mail.ru portal and numerous online services as well as the two Russia’s mail social networks – VK and Odnoklassniki – appears to be the largest Internet property in Russia, while Yandex.ru is the most visited website in the Russian market.
The expert commission of the Association of Communication Agencies of Russia (AKAR) has released the results [in Russian] of their quarterly analysis of development of advertising market in Russia.
In the first two quarters of 2015 total advertising spend in Russia shrank with 16% comparing to the same period of last year landing at 137.9 billion rubles (approx. 1.9 billion Euro).