110M internet

users @80%

penetration

Russia – online retail market overview

Online retail (of total) <2% Online retail (USD) 10B

(Marketplaces share 1,6%)

Population 140 M Internet users 75M

Internet penetration 55%

Total retail (USD) 632,5B

Key market figures (2011)

Market potential 2015

Credit card penetration 30%Cash on Delivery 80%

Source: Goskomstat, Data Insight, Expert opinions, РБК.research, etc.

20B e-commerce

market@2,2%

of total retail

Perspective 300% increase of non-cash payments, big players develop their own logistic and delivery services.

Russia – online retail categories & playersTop players by category 2010-2011AVG monthly turnover by segment

Source: Source: inSales, Data Insight, Expert opinions, Internal research service of AMEG.

Competitors Category GAV 2010 GAV 2011 Visitors MarginalityOzon.ru Books 120 000 000 155 000 000 9 400 000

Books - 40%

Bolero.ru Books 33 333 333 170 000 40%Otto + Quelle Clothes, etc 90 000 000 130 000 000 10 200 000

>70%

KupiVIP.ru Clothes, etc 80 000 000 160 000 000 8 600 00035-50%

notik.ru Computers 36 666 667 510 000 5%Groupon.ru Coupons 2 333 333 96 000 000 19 000 000 50-100%Kupikupon.ru Coupons 450 000 30 000 000 11 000 000 50-100%Biglion.ru Coupons 38 400 000 29 000 000 50-100%

Holodilnik.ru Electronics 100 000 000 185 000 000 1 200 000 12%Uti-note.ru Electronics 40 000 000 125 000 000 350 000

3-5%

Utkonos.ru Foods 333 333 333 980 000 >16%Top-shop.ru Market 30 000 000 36 000 000 1 400 000

>50%

Dostavka.ru Market 26 666 667 40 000 000 940 000 10-20%Wikimart.ru Marketplace 11 157 143 43 333 333 3 000 000 6%Molotok.ru Marketplace 81 462 407 105 000 000 4 900 000 3%

Ele

ctro

nics

Com

pute

rs

Clo

thes

Fur

nitu

re

Chi

ld

Mob

ile

Foo

d

Aut

opar

ts

Russia – eCommerce BCG matrix

0.00% 0.50% 1.00% 1.50% 2.00%0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

350.00%

MolotokWikimartUtinetOtto + QuelleBoutiqueOzon

Market Share

Gro

wth

stars

dogs cash cows

problem childrens

Russia – B2C market entry options

1. Mobile devices market growth• Implement verticals for electronic devices according to dealextreme.com

model• 30% margin in drop-shipping model

2. Shoes, clothes and accessories• Serve on-line shops • All required business processes in place to offer turnkey solutions to offline

companies • One of the options to set up partnership with exclusive distributor of clothes

3. Own logistic and delivery• Invite to our marketplace sellers from: China, Turkey, US, Poland• Implement our own Delivery Service and provide guarantee for delivery • Find major logistics partner for consolidation of shipments and delivery

Russia

Note: Online web presence of traditional offline retailers are not included in this analysis

B vertical

general

C

Consumer Electronics

Media & Books

Fashion & Lifestyle

e-tailers

marketplaces

Shopping club

Fashion & Lifestyle

Shopping Clubs

Media & BooksConsumer Electronics

General e-tailer

Marketplace

Price Comparison

Daily Deals

Competitors GAV 2010Holodilnik.ru 100 000 000

Uti-note.ru 40 000 000

notik.ru 36 666 667

Sotmarket.ru 34 952 000

Citilink.ru 30 000 000

technopark.ru 30 000 000

Ulmart.ru 26 666 667

003.ru 23 333 333

Competitors GAV 2010Top-shop.ru 30 000 000

Vasko.ru 30 000 000

Dostavka.ru 26 666 667

Techhome.ru 16 004 000

Competitors GAV 2010Ozon.ru 120 000 000

Pleer.ru 60 000 000

Competitors GAV 2010Otto + Quelle 90 000 000

Wildberries.ru 43 333 333

Boutique.ru 40 000 000

Laredoute.ru 40 000 000

Sapato.ru 6 812 000

Competitors GAV 2010KupiVIP.ru 80 000 000

club-sale.ru 26 666 667

Competitors GAV 2011Groupon.ru 96 000 000

Kupikupon.ru 30 000 000

Biglion.ru 38 400 000

Competitors GAV 2011Molotok.ru 105 000 000

Wikimart.ru 43 333 333

Competitors GAV 2011Yande .Market only CPC

model

Price.ru only CPC model