Russia's Local Electricity Supplier Is In The Mire Of Losses. Sanctions In Europe And America Make The Industry Worse.

In 2013, Russia The main local network retail platform is basically in a state of deficit. The sales volume of the online retail platform is growing rapidly every year. The reason for this loss is that they have never stopped the pace of expansion, and some companies even include future expenditure into the cost.

Industry experts believe that Russia is suffering from western economic sanctions, and people's consumption enthusiasm has been hit. At the end of this year, online retail sales will inevitably slide. The era of rapid growth of Russian local electricity providers may have ended.

　　 Russian e-commerce platform losses

Recently, Russia has learned that Ozon, Russia's largest online retailing platform, has a net loss of 620 million roubles in 2013. E-commerce experts say almost all large online retailers have suffered losses in the Russian market.

High loss rate is Russia in recent years. Electronic Commerce A characteristic of the market. Statistics show that in 2013, the Ozon.ru sales of e-commerce platform increased by 1 billion roubles, from 6 billion 400 million roubles to 7 billion 400 million roubles. But in the case of rapid growth, its loss increased from 610 million roubles in 2012 to 620 million roubles.

The loss of another large online retail platform is also increasing year by year. Its total sales in 2010 were 6 million 700 thousand roubles, but its losses amounted to 18 million roubles. In 2012, its total sales volume exceeded 272 million 600 thousand roubles, while its losses amounted to 320 million roubles. But as of now, the company has not released its financial data in 2013.

The online retail platform is even worse. Its revenue grew by 2% to 2 billion 800 million rubles compared with the same period in 2012. However, it not only failed to make profits but also lost 701 million, while its previous earnings amounted to 188 million.

KupiVIP, another famous electricity supplier company, also plunged into a loss of mire in 2013. It lost 530 million rubles in sales of 3 billion roubles. Compared with that in 2012, its sales volume was only 5 million 440 thousand roubles, but it gained 1 million 700 thousand rubles net profit.

But not all e-commerce companies have seen such losses. According to SPARC data, sales of Lamoda.ru on the Internet retail platform are 5 billion 300 million, with a profit of 2 billion 800 million rubles, but the result of this profit may be related to the $130 million invested by investors led by Leonard Blavanik last year. Lamoda in the 2013 financial statements, it recorded 4 billion 500 million other roubles of other income. If those were not included, the company was also at a loss.

　 Rapid expansion is the main cause of losses.

Fedor Verlyn, founder of a data research institute, said that the losses of all the rapidly growing online retail platforms have increased to varying degrees. This is mainly due to the fact that the company is in the stage of rapid growth and needs to invest huge sums of money to expand its business scale. Its current budget has included expenditure for a period of time. For large e-commerce companies that rely on external investment, the amount of losses is also increasing with the sharp increase in sales.

Gorman Krimeka, the director of the e-commerce development association and the owner of the Liveinternet.ru payment platform, stressed: "to ensure its financial source, some online retail platforms will also sell some non core products. Ozon started selling e-commerce in 1998, mainly selling books, CD and video tapes, and now began selling electronic products, household goods, clothes, shoes and so on. In 2010, the company withdrew from the airline's online sales business and bought a Sapato.ru, a retail platform for shoes sales in 2012. However, the increase in sales does not guarantee the growth of profits, so Internet companies always maintain a continuous appetite for capital. "

A spokesman for Ozon holding company said that the turnover of the company increased by 50% over the previous year to 750 million US dollars, and the cost of investment has been fully recovered. The new financing of investors is mainly used for developing Ozon tourism, Sapato, transportation services and so on, and even developing B2B business.

Gorman Krimeka thinks investors may be tired of investing in e-commerce, but they still insist on doing so because they are still attracted by the potential of e-commerce. The general manager of AREK believes that investors are pouring large sums of money into e-commerce companies, hoping that the company will continue to expand its business scope, defeat its competitors and raise its market value. However, market practice has proved that such ambition often fails.

European and US sanctions will hit local retail industry

Kerry MEKA believes that at the end of this year, the e-commerce market will usher in similar turbulence in the tourism industry. He predicts that Internet sales will fall back in November and December before the new year. In addition, as Russia is suffering economic sanctions, people begin to attach importance to saving and saving, and even tighten their belts. Under such circumstances, net retail sales will inevitably fall back. At present, representatives of food retailers and catering industries have indicated that the current consumer enthusiasm for consumption is decreasing.

"The sales volume of e-commerce companies is likely to decrease rapidly, plus the accumulated losses, many companies will face real financial problems," kimeca said. In addition, the central bank's policy will add to the situation: the central bank strictly restrict commercial banks from providing loans to businesses and individuals. The first thing to bear is the retail website of everyday consumer goods, and the retail website of electronic products will also be affected. In order to avoid bankruptcy, some e-commerce companies will be forced to merge before 2015.

Leonid Geli, chief analyst of Invest-holding Company, also believes that the crisis of e-commerce market is inevitable. Jelly explains that the era of rapid growth in e-commerce has ended in Russia. There is no sign of profitability now. All e-commerce companies are facing almost the same situation. At the same time, the competition among e-commerce companies is still fierce. At present, relevant departments will receive applications for registration of new Internet retail retail companies almost every week.

In the increasingly saturated e-commerce market, if we want to make profits, we must diversify our business or adopt a unique business model. Geli believes that Amazon.com and eBay are a good example.

He said, "Amazon.com Amazon It has been in deficit for many years. Now it is engaged in dozens of other businesses, hoping that one of them will be profitable. For example, Amazon is hosting cloud hosting, selling digital goods and providing other services. In addition, eBay has adopted a special business model to defeat its competitors.