In recent months, “Yandex. Market” and “Taken” several times appeared in the news. First, another large Russian the Internet-shop Wildberries accused of “Yandex” in unfair competition (for request “Wildberries” in search engine results appeared in “Yandex. Market”). Then the Bell announced the impending “divorce” of shareholders of the marketplace. According to the newspaper, the reason for the disagreement became weak project results. And finally became aware of the impending adjustments to the business concept “Take”.
The first question about Wildberries that is suspected of “Yandex” in unfair competition. What happened?
I have no idea.
That is, in this story you did not understand.
We “Market” this is not understood, but actively understand the “Search” (we have a separate division). In my opinion, the issue decided.
Are you satisfied with the Sberbank and “Yandex” to your SP?
The Bell, citing five interlocutors close to Sberbank and Yandex announced in July that both companies are unhappy with their partnership in online retail. The publication describes several reasons for the discontent. One of them was the failure of the marketplace “Take” is supplied in the first year KPIs. What KPI stood in front of the marketplace and did he?
Our objective is to grow rapidly, increasing the range and loyal customer base. Now on the “Take” we have more than 200 000 SKU (translation — “warehouse учtтная unit”. — Forbes), 1 billion of turnover and around 8 million customers per month. Your KPI we perform.
The second reason for the discontent — the alleged absence of a strong leader in the joint venture of Yandex and Sberbank. Sounded whether such claims during meetings of management or in business correspondence?
Of such claims to us. We’ve got a great team on the market and I’m proud of her. Shareholders, in turn, has also publicly stressed he was proud of the team and our results.
From the publication of The Bell also means that the partners have different product vision and participation of the parties in its implementation. In particular, Sberbank allegedly would like to have more control over operations. As of now Sberbank participates in the management of “Take”?
Our shareholders, and Yandex, Sberbank participate in the management of the company in the Board of Directors. There are important decisions about the direction of development, M&A transactions. Operating activities — on me and on the top managers of the company, no one intervenes in this process.
Whether Sberbank insists on making the payments on the platform of “Take” went through it? What proportion of payments in the marketplace now going through the savings Bank?
Not insisting we are free to choose providers of financial services. Now Sberbank provides us with acquiring and selected it in the framework of the tender because it had the best commercial terms.
As in “Yandex. The market” will relate to the transactions of the savings Bank with Ozon or Avito, if any, will be concluded?
Sberbank is negotiating with hundreds of companies, they can buy or sell different services. Our operating activities is not affected.
When the “Take” will be profitable?
How do you assess the success of the first “Take”?
All really successful. I think that this year the turnover of the marketplace “Take” will be included in the top 10 online stores. We have a goal to become one of the top 3 very quickly, in a few years.
What kind of numbers you expect to end the year out?
We have a turnover of more than 1 billion rubles. If you just multiply by 12, you get a low, which can be. Plus [increase sales] high season, plus development.
And when you expect profit to come out?
Everything will depend on how we want to scale. The more and more aggressive we will grow, the longer it will take the output profitability, because you will have to invest more. In General, I think, on the horizon five years we will reach profitability, and we will continue to address with shareholders together [how to proceed]. While we have aggressive growth strategy.
Of 30 billion rubles, which you stated as the planned investment, what share have you already spent?
Not a very significant proportion, I must say. The money goes to 3-4 investment. This, of course, marketing, attraction of audience. We have great shareholders, our partners are Yandex and Sberbank, and we have integration projects with them. For example, we are cooperating with “Yandex. Plus” program of Sberbank “Thank you.” This is a very big channel for attraction. The program covers millions of people.
The second is technology (the developers are technologically build a business). Technologies are needed for two things. On the one hand, to the right buyers to bring to recommend to customers the products that they need. And on the other hand, technology is necessary to properly use the infrastructure. Many instances where empty wagons coming back from the warehouse, and it costs. There are examples when companies spray your inventory across multiple warehouses, but this is not the inventory, which is in demand in the region, and it turns out that working capital is frozen. At the same time, there is the example of Amazon, which in the US local warehouse sends the goods, knowing that they were soon going to order, because there is an objective analyst. These Analytics are very important for the optimization of the supply chain.
The third — construction of infrastructure. Now for the development of e-Commerce in Russia is really not enough infrastructure for logistics and is holding back growth and makes the service not so convenient for the client. In the past, and this year we have opened several logistics centers for the marketplace “I do” construct our own network of parcel terminals.
Will “Take” cross-border trade?
The first months of the “Take” once adjusted your idea of what need to spend money?
Yes, of course. We constantly learn. Where are the adjustments? The first is the range. Our advantage is that we approach the assortment planning is not like a standard retailer who is looking external reporting. We have the service “Yandex. Market”, where we see that people are watching what they want, what they click, what transitions they perform. We try to adjust our approach to range, based on big data. We have a great develop categories of children’s goods, electronics, FMCG. But we made the adjustments in the category of large home appliances, because not yet found a cheap way to carry bulky goods over long distances.
The second is the delivery charge. Here we look where we want to invest and where to open stores. Where it makes sense to invest in opening a warehouse and “treat” the cost of shipping, local logistics and where-that still will not work to open the store.
The other big story for us — loyalty program “Take Bonus”. It is not just discounts, we are building a smart platform-based machine learning platform that will help our merchants to manage and to invest in a “Take Bonus”. So we are not told who what bonus to give, and that it might do the sellers themselves. For them it is a tool work with the audience and attract buyers.
When we presented “Take”, the first Deputy Chairman of Sberbank Lev Khasis said that the planned integration of the “Sberbank Online” and “Take”. It happened?
Yes, started recently. Now you can go to “Take” with the help of Sberbank ID. Then there is no additional registration potential customers to “Take”.
The integration you speak of, imply, apparently, that the data of the client of the savings Bank on the one hand and the client data of “Yandex” on the other will be transferred to a third party. Wasn’t there any conflict?
No, not there, because both companies are very sensitive to personal data. Everything happens in a completely legal field.
If “Yandex. Market” and “Take” to be useful services “Rambler”?
The company “Rambler” has a big portfolio of services. I am sure that someone of them can be a great partnership.
Why you started to discuss the possibility of integration into the marketplace “Take” the direction of cross-border trade, which until now specialized another online platform — Bringly?
Bringly started to work in November 2018 in the format of a beta test. We tested a fast and easy delivery, connected sellers from different countries, build a network of logistics hubs. We understand how it works and want best solutions to integrate in the “Take”. Thus we enable clients to “Take” to see an interesting assortment at good prices and give the sellers access to the marketplace with a large audience.
What integration options are under consideration?
Now we are talking about adding a top of the range Bringly on “Take”. First of all, we are talking about appliances and electronics.
Will the site Bringly?
The site will continue to work, it has its customers.
When can we say that the “Russian Amazon”, quote Mr. Gref fully operational?
Already earned. But there is no limit to perfection and we have work to do.
How to change Internet Commerce by the year 2030?
The news that the Alibaba Group, the Russian direct investment Fund, “MegaFon” and Mail.ru Group agreed to establish a joint venture in Russia, with a plus sign for you?
In my opinion, Yes. However, it is not entirely clear what will be the business model [of a competitor]. We are waiting for, what will make this new organization. Based on the information held, there are four shareholders and two of SEO, it will be interesting to understand how this story will develop. It is very difficult to run a business that has many shareholders and even two CEOS. Let’s wait for other news to watch how this topic will fly. But, in my opinion, and Mail.ru Group, and AliExpress, or Alibaba is a completely unique competitors. I hope that competition will only benefit the buyers, sellers and the entire ecosystem.
Why do you say that do not understand the business model? Alibaba, AliExpress platform with an established business model. And since the Chinese will be major players in the SP, perhaps we can make an assumption about the model.
I don’t see where one plus one equals three. Alibaba will continue to work and develop in its segment, it is beyond doubt. The question is, what is this joint that will make their business even better, more interesting? It is not yet clear. Perhaps the social network. Maybe some kind of regional development.
We are also very actively monitor cross-border business. And what do we see? What are the needs of Russian buyers transformirovalsya. We see that the consumer filled with cheap goods. Average check cross-border trade is growing.
Now people more and more choose higher quality goods not only from Southeast Asia but from Europe, Israel, Turkey, North America. It affects logistics. Now logistics from China fast, is very cheap, but if we say that we need to bring something from Turkey, from Europe, from Germany, from the USA, then this service is incomparably expensive. Together with “Mail of Russia” are trying to establish such cross-border mail channels that you not only cheap goods from China, but branded goods from other countries. It will be another stage [of development of Internet Commerce].
Another stage will be the food. At the beginning of the online sold books, CDs, then electronics, then clothes. And over the next five years will be marked FMCG, consumer goods. Nobody has done it well. There are a lot of experiments. We are doing experiments competitors are doing experiments. In the end, now the online stores I can collect some trash, but for fresh milk and tomatoes still have to go somewhere. As soon as two, three, four players will make the service that will allow you to buy all good quality, the level of convenience online shopping get a ton.
You say that changing the preferences of Russians, they are more like the European products, quality products. And should not be expected that along with these goods to the Russian market will come and some major Western players like Amazon or its European competitors?
I think it’s time. It would be great if it was international players who would bring some of his expertise. Someone would come, someone would come in partnership with some local player. But I think that the colleagues would be difficult to take such a step. Scaring all 11 time zones in Russia. In any country there is no such. And if those or other technologies of our global competitors and colleagues are present, how to maintain 11 time zones with not much infrastructure, they do not know. I think that over a period they will be considered our market, seek partners and options log in correctly. If there are interesting potential options, we are ready to negotiate and to conclude partnerships with them.
And whether it is necessary to protect the Russian market is now from Chinese Internet sites, and in the future may be, from American and European?
The deal, which we have just mentioned, can also be called protection: in the Russian capital is teaming up with the Chinese, and it is a joint history, a joint venture. Foreign companies bring technology and money. But technology is what allows you to save money, to do something cheaper for buyers to reduce the price or, conversely, to do something faster, better. Therefore, you need to use these best practices and technologies than to try to protect themselves and reinvent the wheel.
If we talk about the increase in customs duties for cross-border parcels, while it is not affected by the business. Now the average check of about €20 euros, not €200, which will be the limit.
That, I think, is really important, is the fact that we are building a “Take” as a marketplace, which enables small producers to focus on what they can do, that is, to produce goods. And we assume that they do not know how: logistics, payment, storing, arbitration and so on. This should allow our manufacturers to produce here, and not depend on Chinese imports. I think that the protection that is — no duty to protect, and to do so, to make life easier for Russian producers.
In may, Lev Khasis said that the IPO “Yandex. Market” possibly on the horizon five years. Do you agree with this forecast?
Yes, I agree. Usually we say the following. To think about an IPO, you need to meet certain goals. This rate of growth, and sized. To do an IPO on the small numbers it makes no sense. On the stock exchange need to go when the business model is proven, it grows, scales are either already profitable or nearing it. This is the time that is necessary to attract additional investment. I think that we have management objectives for three years to rapidly, intelligently and efficiently to grow to catch up with competitors, and after a three-year cutoff, we’ll have to think about additional investments.
How much would you have evaluated the whole business of “Yandex. Market”?
This is a very conventional story. We were estimated at 60 billion roubles a year ago. During this time we grew a lot. If we now entered the market and attracted the evaluators, this figure would be higher. But more specifically difficult to say. There are different methods of calculation. A realistic assessment can be made on the horizon 24-36 months, when processes are streamlined and completed several annual cycles. That is, in the end of 2020 it will be possible to make an assessment.
Wondering whether “Yandex. Market” integration with the infrastructure of a major offline retailer?
We certainly can’t ignore such opportunities. I believe the retail of the future is a combination of online and offline. We have great skills on online and the first steps in the construction of the offline examination. From large retail chains is, on the contrary, great expertise and offline infrastructure. Accordingly, I do not exclude that on the horizon five years there will be some partnership between online players and offline platforms. But I believe that first you need to make many experiments on the level of commercial relations, to try, to experiment. If there is synergy and joint potential, then, Yes, it will be grounds for already joint partnerships.
We will be trying to negotiate with partners. We have no problem with someone exclusive to be friends, we are open for collaboration with market players and generally believe in the network effect. The more commercially viable partnerships, the more opportunity to reach the right audience.
Have already started negotiating a partnership with major offline retailers?
Not yet planned, but if it will appear on the horizon, of course, will tell.
Then there is the prospect of the next months, maybe years?
I think it’s a term of 18 months somewhere, we’ll see.
Your forecast for development of the Russian market of online retail in the coming years? What will be its volume, what is the growth rate?
I believe that the online trading market will grow more than 30% year-on-year. I think we need, and has the potential to reach the first significant cut-off of 10% of the total market in the next 2-4 years, and then to take 15-20%, but it is rather a horizon of 5-7 years.
Overall, the retail market is growing at a few percent per year. There is a flow of people from offline to online, and it will accelerate thanks to the development of the category of FMCG, food products, fast delivery, creation of networks of points of issue. For example, we are opening outlets in branches of the savings Bank, because there is a lot of traffic, people can receive their orders. Here it will just be a driver.
The more competitors, the more we are going to invest in it, the faster will develop e-Commerce.
How will online retail in 2030? And what is in it is place “Yandex. Market”?
Retailing in 30 years… This is the story, which is shopping for fun when you go, look at the Windows, have fun, get distracted, well, if something like it, then buy. Another option of the shopping task, when you need to buy something. It seems to me that significantly reduced the time such shopping, because this ordering can be done through the voice assistant to tell him: “Alice, get the goods for the house, as usual.” Your house will be the point of delivery in which evening to pick them up. The time that comes out, people will spend either on themselves, on the development or the shopping, which will be rather fun. And it is also possible online to do.
We don’t know what ten years from now, will devices, but they certainly will allow the user to get the most personalized offers: the company will understand what you really interesting and important. And there will be situations when you bought the shoes, and you another two months on the Internet promoting.
That is still no drones, and the usual shipping?
I think it is. I believe that drones wholesale is more about the story when they deliver parcels to a distribution center. And further still — the courier or someone else.
And the place of “Yandex. Market” in 2030?
Number one, of course. (laughs)
In the world?
Russia is number one in the world — will in some countries to attend.
With Ivan Osipov
20 most expensive companies web — 2019. The Forbes
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In 2018, the ecosystem of “Yandex” added services “Yandex. Cloud”, “Yandex. Dialogues”, “Yandex. Plus” and “Yandex. Drive”. In February of 2018 closed the transaction on Association “Yandex. Taxi sector” in Russia and five neighboring countries. The share of “Yandex” in the new company worth more than $3.8 billion was 59.3%. Also “Yandex” bought an aggregator of discounts “Edadil” and 83.3% of service delivery of grocery sets “Party food”.
2. Mail.ru Group
Mail.ru Group continues rivalry with Yandex to diversify an online business. In the beginning of 2018, the group bought eSports holding ESforce for $100 million, and in April launched an online service medicines, “All the pharmacies”. In the fall of 2018, the group received about 18% stake in the online taxi service “Citymobil” and agreed with Chinese Internet giant Alibaba to build an online retailer AliExpress Russia.
Largest free classified ads website in Russia was founded by Swedish Jonas Nordlander and Filip Engelbert. The service was earned mostly on the service for the promotion of advertisements. For the year 2018, the number of users has grown from 32 million to 35 million people per month. In January 2019 Fund Naspers bought 29.1 percent of the company’s shares for $1.16 billion, bringing its stake to 99.6%. So the service received a valuation of $3,85 billion
Founded in early 2000-ies Wildberries company started with the sale of clothing through catalogs. Now it is the largest online retailer, the revenue of which is growing every year. The founders, wife of Bakalchuk, once admitted to Forbes that you never imagined that will create a superproject. But by the end of 2018, the revenue of their company exceeded 100 billion rubles, and assessment of capitalization — $1 billion
5. Ozon Group
In March 2018 MTS has invested in online retailer Ozon 1.15 billion rubles, having increased its share from 11.2% to 13.7%. Later, the Telecom giant has increased its share already to 16.66%, the transaction amount was not disclosed. The funds raised Ozon invests in infrastructure and new projects. In 2018, he received a license for pharmaceutical activity and began to deliver the medication at home.
HeadHunter is a leading sites for job search in Russia and CIS countries. In 2017, the service has announced plans to go public in 2018 on the NASDAQ. He hoped to attract investors $250 million, which would mean a valuation of $500 million eventually, according to some, the deal was called into question because of the stringent U.S. sanctions, adopted in April 2018.
“Citylink” is the only online retailer on the Forbes list, which specializiruetsya in electronics trade. The company is actively increasing its presence in offline: the number of its stores increased from 44 to 80. The retailer has a network of 470 points for issuing and receiving orders “Sitilink-mini”. By the end of 2019, the company plans to increase the number of stores to 200, own collection points to 600.
In 1999, Novosibirsk businessman Alexander Sysoyev came up with to unite the city map directory. Today the service is used monthly 45 million people from 370 cities in nine countries. In 2018, the American company Apple has included data 2GIS in the standard Maps app. In addition to maps in the service of 2GIS also presented about 60 free travel guides to different countries.
The last few years, online retailer of clothing and footwear Lamoda is actively developing b2b-direction: the shops-partners had the opportunity to use the logistics and infrastructure of the company. Now on this model Lamoda has partnered with 20 major brands. In 2019 Lamoda plans to open its first offline store of almost 1000 sq. m.
In 2018 the revenues of the largest Russian online cinema ivi has increased by more than half. Pay model in its structure became the main, finally overtaking is. According to the founder of the service, Oleg Tumanov, by 2020, the ivi may go for an IPO on the NASDAQ, if you keep the pace of growth. Recently the service became available on consoles for the TV Roku in the US, Canada and UK.
Service for search and reservation of air tickets Aviasales belongs to the structure of the Go Travel Un Limited with its headquarters in Phuket. For 2018, the year its audience has grown from 10 million to 12 million unique users per month. In early 2018, the company entered the market of Kazakhstan, which earned the website aviasales.kz and in July launched together with the Amazon search portal for tours and tickets avitotravel.ru.
The idea of the service belongs to Serhiy Kuznetsov, who, as a graduate student of MIPT, worked as a tutor and in 2006 created a website for search orders “Your tutor”. Later he was joined by Egor Rudi, they combined several projects into one Profi.ru. The service earns a Commission with each service provided. In 2018 through Profi.ru carried 2.8 million orders.
Internet-shop “Onlinetrade.ru” sells products in 30 categories, including electronics, appliances, pharmaceutical and cosmetic products, furniture, clothing and even food. Its network is comprised of 390 points of delivery of the goods in 102 cities of Russia. The retailer handles more than 16,000 orders daily. In 2018 he launched in Khimki transport and logistics complex with an area of 23 000 sq. m.
Online English school Skyeng has developed rapidly over the year 2018, the number of teachers registered on the site increased from 2200 to 5440 people, and students from 19 500 to 52 500. The company’s revenue has doubled compared to the 2017 year. In January 2018 Skyeng attracted funding from the investment Fund Baring Vostok, said the deal valued the startup at about $100 million
The company originated as a joint venture Sergey Ryzhikov (Bitrix) and Boris Nuraliev (1C) and the development of a management system websites and online projects. Initially, the main income came from the sale of licenses to web design and web development (more than 15,000), but now most of it provides “Bitrix24”, which develops CRM and service management business in Russia and around the world.
Technology company that grew out of the branch of the investment company “Severgroup” Alexey Mordashov. 2017 brings together several projects in the field of education and employment: “Netology”, “Foxford”, “Repairman.ru”, FL.ru, Potok, JungleJobs. The largest project of the group — “netology-group”, included into the structure in August 2017, provides about 80% of annual revenue.
17. CYANOGEN Groups
In five years the portal cian.ru turned into blockbuster service rental and sale of real estate. Now his audience of more than 12 million people per month. In 2018 CYANOGEN announced the launch of the service a mortgage approval from banks: buyer fills out a questionnaire online, choose the suitable offer, refers to the Bank scans documents and receives the consent or waiver.
B2B-Center helps large organizations to select contractors for complex services and look for expensive industrial equipment. In 16 years on the court has been more than 1.1 million trading on 16.1 trillion rubles. In January 2019 B2B-Center has launched a B2B-Start for medium-sized businesses to participate in tenders for it, every registered company, in this case an electronic signature is not required.
The launched portal Superjob Alexei Zakharov, then owned by the developer of sites “Triumvirate development”. For 19 years, the service has not changed the founders. The company has a non-profit direction “vocational Guidance” – experts Superjob are in universities with lectures on how to build a career. According to Forbes, Superjob has a share of more than 20% in the market of online services for job search.
The service YouDo unites customers and providers of different jobs: courier services and freight, repair, cleaning, computer help. On the website generated more than 4 million jobs and was around 1 million performers, from which the fee is charged for information about their services. In 2018, MTS bought a 13.7% stake in service for $12 million Earlier in the project, invested venture Fund Sistema Sistema VC.
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