This article is my second interview with Leighton Peter Prabhu from Interstice Consulting LLP, where we discuss Russian online consumer behavior.
After helping companies with Russian e-commerce for 5 years, Peter shares some great insights into Russian buying habits and gives some tips of how to win the customer in this tough market.
Peter, you moved to Russia in 2006. What was your first impression about Russian Internet industry?
At that time, even large companies had websites which seemed a generation behind their US counterparts.
I’m very excited to publish this interview on Russian Search Tips. Leighton Peter Prabhu is a partner in Interstice Consulting LLP and head of the Russian office. He has been living in Moscow for 7 years, and since 2008 has been helping foreign companies to establish their e-commerce operations in Russia. Coming originally from Canada, Peter created a successful business in Russia and feels right at home in Moscow.
In this interview Peter shares his experiences and knowledge about Russian e-commerce and gives some great pieces of advice to companies and entrepreneurs who are considering entering the Russian market.
In all the glory of Russia, the largest online market in Europe that keeps growing at astonishing rate, other members of CIS often get neglected both in press and business.
This time the focus of my post is not on Russia, but on Ukraine, where e-commerce starts picking up the pace as well.
Russia has proven to be a difficult market to enter for the foreign online retailers. The problems do not end with difficult language, local search engines and advertising platforms, and cultural differences. The logistics is one of the main challenges; payments is the other.
Russian market is very different from other European markets when it comes to online payments. E-commerce is on a pretty early stage of its development, and the trust to online payments is low. Cash on delivery is still very common way of paying for products purchased online. Local online payment systems dominate the market, while PayPal has a very small share of the market.
During the last Russian Internet Forum (RIF) conference help in Moscow in April a number of Russian online payment providers such as PayU and Robokassa, as well as an independent research companies TNS Russia and DATA Insight shared some insights into the situation with online payments in Russia. Below I will try to summarize the main points from their presentations and give a snapshot of the current state of the market.
This evening I created these infographics about Russian Internet economy development in 2011-2012. The full report was presented by RAEC during Russian Internet Week 2012 – a 3 days long conference that covers all aspects of the Russian Internet Industry. Hope you like it!