The Russian Post and its Italian counterpart Poste Italiane are considering launching an online offer of apparel and footwear from small and mid-sized Italian producers, the business daily Kommersant reported, based on an exchange with the Russian Post.
“A detailed business plan, drafted [in conjunction] with our Italian colleagues, along with a study of the market and a consumer profile research, should be completed by April,” said Marina Goncharova, the Russian Post’s Director of Postal Services.
The technical aspects of the project will be discussed by the two partners as soon as possible, she added, and they plan to launch the site launch by next summer.
Poste Italiane has a similar experience within its local market, having worked out agreements with 260 Italian suppliers who do not have their own e-commerce sites, Goncharova explained.
In 2011, the Russian market for online fashion and footwear reached approximately $1.3 billion, or 13% of the total online retail market, according to EWDN’s report on Russian e-commerce.
While Italian fashion enjoys popularity among Russian consumers, the two allied postal services have considerable work to do to provide them with satisfactory service. Problems can occur at every stage of order fulfillment, from customs clearance, to delivery to consumers, to order tracking and security.
As EWDN’s research report points out, parcels handled by the Russian Post are sometimes delivered only after considerable delays, and in some cases can even be lost or stolen.
The Russian Post will also face fierce competition, with well-financed e-commerce players offering large assortments and building modern fulfillment capacities on their own – sometimes without even charging their customers for delivery and returns across Russia’s huge territory.
Online cross-border trade has developed considerably over the last few years, nearing the level of two billion dollars in 2012, according to EWDN’s experts. As New Year’s Day 2013 approached, the Russian Post reported the number of packages arriving from abroad was double what it had been last year.
RUSSIAN E-COMMERCE AND CROSS BORDER SALES REPORTS – The total volume of Russian online retail is estimated to have reached $13 billion last year, up from $10.5 billion in 2011, not including an approximate $2 billion for cross border sales. In partnership leading universities and consultancies, EWDN has published an in-depth research on this industry.
- To participate in an online survey on cross-border sales, please click here.
- To receive free insights or to order the full version of EWDN’s e-commerce reports, please contact us at [email protected].
