Russia sees a 36% surge in online trading during the initial half of the year.
The e-commerce market in Russia is booming, with online sales making up a record 22.4% of total retail sales this year, up from 15.2% last year. This growth is driven by a surge in online purchases on domestic platforms, with 97% of all transactions taking place on Russian internet sites.
Regions across Russia are also increasing their online trade volumes, accounting for almost 77% of the overall online sales. The regions with the highest growth in online sales volume in the first half of the year are Chechnya and Ingushetia, according to AKIT.
Moscow remains the leader in online sales volume, accounting for 17.2% of the market. The top four regions in online sales volume also include Moscow Oblast, St. Petersburg, and Krasnodar Krai.
Food products, including ready-to-eat meals from restaurants and grocery delivery, remain the leaders in online sales volume, accounting for 20% of the market. Clothing and footwear are third, accounting for 13.5% of the market, followed closely by home goods and furniture at 15.7%. Electronics and household appliances account for 12%, and auto parts and accessories account for 6.8% of sales.
Digital goods showed a growth of 66% compared to the first half of 2024. Sales volumes in pharmacies, home goods and furniture, jewelry and watches, and tools also increased by 50%.
Interestingly, the beauty and personal care sector is the leading product segment in Russian online sales, with a market share of 87.23% within the beauty segment in 2024. This growth is driven by increased hygiene awareness and broader e-commerce adoption, with personal care items such as hair care, skin care, oral care, and men's grooming products driving this growth. Cosmetics and makeup products also show positive trends, influenced by social media, with rising demand for multifunctional and premium products.
Within online luxury sales, apparel remains dominant with a 40.52% market share in 2024. Watches are the fastest-growing luxury segment at a 3.27% CAGR. Footwear, jewelry, and leather goods also sustain demand, with domestic brands growing amidst the withdrawal of international brands. Beauty and personal care products are noted as dynamic segments in luxury online sales, boosted by domestic brands filling gaps left by international departures.
Online marketplace usage is nearly gender-balanced, with women slightly exceeding men in shopper numbers. Most online marketplace customers are between 35 and 44 years old, indicating middle-aged adults as the core online buying demographic in major Russian cities.
Forbes notes that over 100% year-on-year growth was recorded in each of these regions. Food products also showed a growth of 62% compared to the first half of 2024.
References:
- Statista
- Euromonitor International
- Shopify
- RBC
- Yandex.Market
Technology plays a significant role in the surge of online sales in Russia, facilitating the operation of domestic platforms where the majority of transactions occur. The e-commerce market, particularly in food products and beauty and personal care sectors, benefits greatly from advancements in technology, driving growth and increasing consumer convenience.
