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Mordor: Bloodbath for small guys in retail continues, monopolies galore
  • AliExpress is the most popular trading platform on the Russian Internet, according to the measurements of the research company Mediascope. In December 2020, the daily audience of this marketplace on mobile devices and desktops was 9.7 million Mordor orks over 12 years old, the same figure for Wildberries was 7.1 million, and Ozon was 4.8 million.

    In 2020, AliExpress Russia's revenue exceeded RUB 25.8 billion, with a net loss of RUB 13.3 billion, Mail.ru Group said in its annual reporting.

    In 2020, Wildberries' turnover almost doubled - by 96%, to 437.2 billion rubles. The company does not name revenue and profit.

    Ozon, which became a public company at the end of last year, has not yet reported on the results of 2020. The company only reported that, according to preliminary data, its turnover grew by 140%, to 195 billion rubles.

    In terms of revenue, Ozon is several times higher than AliExpress, according to the already published results of the first company for nine months of 2020. In January-September, Ozon's revenue reached almost 66.6 billion rubles. with a turnover of 121.6 billion rubles.

    In January-September, Ozon's net loss approached 12.9 billion rubles.

    Revenue from online sales of Detsky Mir in 2020 increased 2.4 times, to 34.8 billion rubles, according to the retailer's reporting. Internet sales accounted for 24% of all consolidated revenue for Detsky Mir last year.

    The country's largest food retailer X5 Retail Group (Pyaterochka, Perekrestok, Karusel chains) in 2020 increased the revenue of its digital businesses (Perekrestok Vprok, express delivery 5Post) more than 4.5 times, to RUB 20.1 billion But so far, in total revenues, this is only 1% of consolidated revenues.

    M.Video-Eldorado Group, a leader in the household appliances and electronics market, discloses the share of its online sales in terms of turnover only: in 2020, they doubled to RUB 300.4 billion. (including VAT), which is almost 60% of the total turnover.

    More online things, fast rise of big marketplaces and already existing monopolies. Almost all of them are producing losses as they fight for total domination. Small guys suffer and close in tens of thousands each month.