I have developed an interest in Russia through my studies, work and traveling (BTW, I will be visiting Moscow again in January). Especially, since I started working in
Hub Vilnius and meeting
all those startupers and entrepreneurs - that certainly boosts one's ambitions to explore foreign markets :) Anyways, I have been reading and researching a lot lately about Russian Internet market, so here are some cool facts about good old Russia's Internets:
1. The biggest and the fastest - Russian Internet nowadays
boasts the best Internet growth rates in Europe – comScore in its recently released “Overview of European
Internet Usage in September 2011”[i]
states that Russia overtook Germany as the market with highest unique visitors
online. This constitutes to more than 43% of population of Russian Federation
or 60 million people who have access to Internet (World Bank, 2010)[ii].
These numbers continue to grow and are even higher in major urban cities. Also,
reducing prices due to competition and innovations in technology allow Russians
to browse Internet faster than ever before. Once online, Russians on average
spend almost the same time as Europeans.[iii] These
days most Internet users connect via broadband (around 70%) or Wi-Fi (20%)[iv] which
guarantees reliable and fast Internet connection. According to TNS conducted
research – 90% of Internet users go online at home, 25% at work.
2. Social networks addicts - Russians, according to
statistics, spend significantly more time in social networks compared to an average
worldwide user. Main networks include Classmates, My World and VKontakte – all
part of Mail.ru group.[v]
With an average of 9.8 hours per visitor during the month, Russians spent more
than double the worldwide average of 4.5 hours per visitors on social networks,
ranking it #1 among all countries in social networking engagement.[vi]
3. Local boys are in control - high standards of math, engineering and
computer science education in Russia makes local IT-specialists[vii]
well-known in a lot of countries[viii] and
drives to technological parity between local and global market players[ix]. Partly
because of this, all the top-ranked global leaders in any kind of Internet services have failed to be the first in the Russian Internet.[x] However,
many of such local Internet leaders are backed by foreign investors and expertise.[xi]
Finally, one more important point is that a lot of Russian Internet parameters
are measured and there are much more stats open and available than in the
Global Net.
4. Wanna play, learn Cyrillic - due to various historic events, social and political developments there is very small amount of English speakers in Russian. Thus, almost all of Russian sites are made only using Cyrillic alphabet, and most of
the search queries are made in Russian using Cyrillic letters.
5. Low online payments - because of the absence of countrywide-used
Internet payment system in Russia, fear of credit card frauds over the Internet
and low confidence in virtual payments at all, most of users prefer
cash-on-delivery model when buying goods online.
6. Crappy logistics - is still one of the main obstacles for
e-commerce development – one of the most common fear of Internet shoppers is
delayed parcel shipment, receiving damaged goods or not receiving them at all.
7. Regulation "the Russian way" - regulations, censorship[xii] etc
for Internet in Russia are still very few and loosely implemented.[xiii] This
also may be the reason why hacking, copying and illegal content[xiv],
piracy, fraud are common (sometimes may even be initiated by official
institutions[xv])
8. Trend of advertising online – growing young market with insignificant
regulation. Users are used to various very intense advertising approaches,
spam, pop-ups etc., thus only small proportion of Internet users click on adds.[xvi] Still,
online advertising shows the highest growth dynamics in Russian advertising
market – plus 57% in 2011, compared with last year’s first half.[xvii]
9. Mobile is the future - thanks to the availability of mobile Internet service in rural areas,
for example, Internet penetration has reached 31 percent. In cities with
100,000 inhabitants or more, we are talking about 42 percent Internet
penetration.[xviii]
10. Urban cities in the
lead - the penetration is close
to maximum (on the same level as Western Europe cities) in Moscow, St. Petersburg and other cities with over a million
population, but some of the country's regions almost don't have Internet
connections.[xix] Thus, regions that still don't boast
good penetration are likely to be the biggest contributors to this growth
because development of loan financing might result in people buying more computers
and laptops.[xx]
What did I miss? Seriously, feedback on this post is kind of a must if you read it all :) Or at least let me know what would be interesting for you to read about Russian Internet, cause I do have a lot more statistics, articles, sources to share etc.
Have a good one,
Eddy
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