Sample Report: CIS B2C E-Commerce Market 2015

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METHODOLOGY (1 OF 2)

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

The reports include mainly data from the last 12 months prior to date of report publication. Exact publication dates are mentioned in every chart.

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METHODOLOGY (2 OF 2)

This report covers the B2C E-Commerce market in the selected member countries of the Commonwealth of Independent States (CIS), including Armenia,

Azerbaijan, Belarus, Kazakhstan, Russia, and Uzbekistan. Ukraine is also included in the present report as a market closely related to the CIS countries and

participating in CIS on a selective basis.

Each country is covered in a separate chapter. The countries are presented in the order of descending B2C E-Commerce sales. Where no comparative sales

were available, other relevant criteria were applied to determine the order, such as Internet penetration.

Each country chapter starts with an overview of development of B2C E-Commerce in the respective country with international comparisons.

Following that, information about trends, sales & shares, users & shoppers, products, payment, delivery and players is presented, where available. Due to

varying data availability some of these sections may not be covered for certain countries.

The “Trends” section generally provides an overview of the related market trends, such as cross-border B2C E-Commerce, social commerce, mobile Internet

penetration and the devices used to access the Internet.

The section “Sales & Shares” includes the development of B2C E-Commerce sales, including historical sales and forecasts, where available. Furthermore, this

section shows information about B2C E-Commerce’s share of the total retail market. Related numbers, such as total sales of E-Commerce companies and the

value of online purchases per shopper are used where no information about actual B2C E-Commerce sales was available.

In the “Users & Shoppers” section, a review of the development of Internet penetration is included. Where available, the number of online shoppers or a ranking

of online activities of Internet users, including online shopping, is provided.

Afterwards, the section “Products” shows the leading product categories purchased online, where available.

The next two sections, “Payment” and “Delivery”, cover information related to delivery and payment methods most used by online shoppers if available. With

regard to payment, data on online payment transactions with bank cards, such as number and value of transaction, is included where no ranking of online

payment methods is available.

Finally, the “Players” section includes information about the leading E-Commerce players, such as retailers, marketplaces and classifieds portals, based on

criteria such as sales, website rank and popularity in social networks, depending on data availability.

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DEFINITIONS

B2C E-COMMERCE the sale of products (and services) through electronic transactions via the Internet from businesses to

consumers.

B2C E-COMMERCE SALES the total sales generated on the B2C E-Commerce market in a certain country or region.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic

transactions via mobile devices, such as mobile phones, tablets and smartphones.

CROSS-BORDER B2C E-COMMERCE the sale of goods (and services) directly to consumers in other countries, with orders made online through

foreign online shops and delivered from the country where the foreign shop is based or from a central logistics

facility, i.e. across the country’s borders.

INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.

ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.

ONLINE PAYMENT transfer of money made over the Internet following a consumer’s payment command, includes payments for

product and service purchase in E-Commerce and M-Commerce.

ONLINE CLASSIFIEDS an online platform, where both consumers and businesses can publish small advertisements about the sale of

goods and services.

GROUP BUYING/DAILY DEALS an online platform, where both consumers and businesses can publish small advertisements about the sale of

goods and services.

The following expressions and definitions are used in this B2C E-Commerce market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 9)

1. Management Summary

2. Russia

2.1. Overview

B2C E-Commerce Overview and International Comparisons, December 2015

2.2. Trends

B2C E-Commerce Trends Overview, December 2015

Cross-Border E-Commerce Statistics, incl. Number of Orders by Location and Platform, Number of Parcels and Average Check, 2013 &

2014

Smartphone User Penetration and Mobile Shopper Penetration, in % of Online Shoppers, by Age Group and Total, October 2015

2.3. Sales & Shares

Historic B2C E-Commerce Sales, in RUB billion, by Comparative Estimates, 2009 - 2014

B2C E-Commerce Sales Forecasts, in RUB billion, by Comparative Estimates, 2014 - 2019f

B2C E-Commerce Share of Total Retail Sales, in %, by Comparative Estimates, 2014 - 2020f

2.4. Users & Shoppers

Monthly Internet Audience, in millions and in % of Adult Population, Summer 2011 - Summer 2015

Number of Online Shoppers, in millions and in % of Internet Users, 2013 & 2014

Online Shopper Penetration, by Gender, Age Group and Location Type, in % of Internet Users in the Relevant Group, November 2014

2.5. Products

Product Categories Purchased Online, in % of Online Shoppers, 2013 & 2014

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2. Russia (Cont.)

B2C E-Commerce Sales by Product Categories, in RUB billion, 2013 & 2014

2.6. Payment

Payment Methods Used in Online Shopping, in % of Online Shoppers, 2011 - 2014

2.7. Delivery

Breakdown of B2C E-Commerce Orders by Delivery Methods, in %, 2013 & 2014

2.8. Players

B2C E-Commerce Players Overview, December 2015

Top 20 Online Shops, Ranked by Sales, incl. E-Commerce Sales, in RUB billion, Number of Orders, in thousands, Average Check, in

RUB, and Main Product Category, H1 2015

3. Ukraine

3.1. Overview

Overview and International Comparisons, January 2016

3.2. Trends

Share of Online Shoppers Placing Orders Online via Social Networks, in %, 2013 & 2014

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3. Ukraine (Cont.)

3.3. Sales & Shares

B2C E-Commerce Sales, in UAH billion, 2014 - 2017f

B2C E-Commerce Share of Total Retail Sales, in %, 2014


Internet Penetration, in % of Individuals, 2010 - 2014

Number of Online Shoppers, in millions, Q3 2013 & Q3 2014

3.5. Products

Product Categories Purchased Online, in % of Online Shoppers, Q3 2014

3.6. Payment

Share of Online Shoppers Paying by Card, in %, 2015

3.7. Delivery

Most Important Factors in Online Shopping, incl. Delivery, in % of Online Shoppers, Q3 2014

3.8. Players

Breakdown of Online Shops by Market Share, by Electronics & Household Appliances and Clothing & Shoes, 2014

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4. Kazakhstan

4.1. Overview

B2C E-Commerce Overview and International Comparisons, November 2015

4.2. Trends

Overview of B2C E-Commerce Trends, November 2015

Breakdown of B2C E-Commerce Payments with Bank Cards, by Kazakh Online Shops and Foreign Online Shops, in %, 2012 & 2014

Perceived Barriers and Advantages of E-Commerce, in % of Internet Users, 2014

4.3. Sales & Shares

B2C E-Commerce Sales, in USD million, 2012, 2013 & 2017f




Breakdown of Internet Users, by Age Group and Gender, in %, July 2015

Breakdown of Main Purposes of Internet Usage, incl. “Buying and Selling Goods and Services”, in % of Internet Users, 2013 & 2014

Breakdown of Online Shoppers, by Age Group, in %, 2014

4.5. Products

Product Categories Purchased Online, in % of Online Shoppers, 2013 & 2014

Average Check in B2C E-Commerce, in USD, by Product Category, 2014

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4. Kazakhstan (Cont.)

4.6. Payment

Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, 2013 & 2014

Number and Value of Online Payment Transactions with Bank Cards, in thousands and in KZT million, and Share of Total Bank Card

Payments Number and Value, in %, September 2014 - July 2015

Overview of Top 10 Online Payment Processing Systems, Ranked by Revenue, September 2015

4.7. Delivery

Share of B2C E-Commerce Deliveries of Total Small Parcel Deliveries Made by Post, in % and in millions, 2014

4.8. Players

Overview of E-Commerce Players, November 2015

Overview of Top 10 B2C E-Commerce Companies, Ranked by Revenue, 2014

5. Belarus

5.1. Overview

Overview and International Comparisons, January 2016

5.2. Trends

Breakdown of Online Purchases by Device Used, in %, Q1 2015

Countries and Regions Purchased Online from, 6 Months to September 2014

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5. Belarus (Cont.)

5.3. Sales & Shares

B2C E-Commerce Sales, in USD million, 2013 & 2014




Online Shopper Penetration, in % of Internet Users, 2013 - 2015

5.5. Products

Products Purchased Online, in % of Online Shoppers, 2014

5.6. Payment

Breakdown of Last Online Purchase by Payment Methods, in % of Online Shoppers, September 2014

5.7. Delivery

Breakdown of the Last B2C E-Commerce Order by Delivery Method, by Order Value, in % of Online Shoppers, September 2014

5.8. Players

Top 10 E-Commerce Websites by Website Rank, January 2015

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6. Azerbaijan

6.1. Overview


6.2. Trends

Breakdown of Households with Internet Access by Type of Internet Connection, in %, 2010 - 2014

6.3. Sales & Shares

B2C E-Commerce Sales, in AZN million, 2013, 2014 & H1 2015

B2C E-Commerce Share of Total Retail Sales, in %, H1 2015



Breakdown of Internet Users, by Age Group, in %, 2014

Breakdown of Main Purposes of Internet Usage, incl. “Ordering or Selling Goods and Services”, in % of Internet Users, 2014

Online Shopper Penetration, in % of University Students, January 2015

6.5. Players

E-Commerce Websites Most Purchased from, in % of University Students Shopping Online, January 2015

Overview of Popular Online Shops, incl. Category and Website Traffic Data, November 2015

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7. Armenia

7.1. Overview


7.2. Trends

Breakdown of Households by Computer Types Owned, in %, January 2014

Smartphone Penetration by Age Group, in % of Individuals, 2015e

7.3. Sales & Shares

Revenues of Companies Specialized in Internet Applications and E-Commerce, in USD million, 2010 & 2014



Online Services Used, incl. Online Shopping, in % of Internet Users, January 2014

7.5. Players

Overview of Top 8 B2C E-Commerce Websites, Ranked by the Number of Facebook Fans, November 2015, and Website Traffic Data,

October 2015

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8. Uzbekistan

8.1. Overview


8.2. Trends

Breakdown of Internet Usage Frequency, in % of Internet Users, by Device, 2015e



Number of Internet Subscribers, by Fixed and Mobile, in thousands, 2013 & 2014

Number of Internet Users, in millions, January 2015 & September 2015

8.4. Players

Overview of Top 10 E-Commerce Websites, by Website Rank, October 2015

Overview of Selected B2C E-Commerce Websites, Accepting Payment Online, incl. Website Rank and Number of Website Visits,

September 2015

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1. Management Summary

16 – 22

2. Russia

23 – 41

3.

4.

Ukraine

Kazakhstan

41 – 52

53 – 71

5. Belarus

72 – 83

6. Azerbaijan

84 – 94

7.

8.

Armenia

Uzbekistan

95 – 102

103 – 110

75%

64%

75%

87%

29%

17%

29%

41%

0% 20% 40% 60% 80% 100%

Total

40-55

30-39

20-29

Purchase fromSmartphone

Use Smartphone

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The highest smartphone user and mobile shopper penetration among

online shoppers in Russia was in the age group “20-29” in Oct. 2015. Russia: Smartphone User Penetration and Mobile Shopper Penetration, in % of Online Shoppers, by Age

Group and Total, October 2015

Survey: based on a survey of 2,400 online shoppers, conducted between September and October 2015; questions asked: “Which devices do you personally use to access the

Internet?“, “Have you ever purchased goods online via smartphone?”

Source: GfK, Yandex cited by Mobile Review, December 2015

in % of Online Shoppers

Overview Sales & Shares Delivery Products Users & Shoppers Players Payment Trends

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Gender Age Group

25-34 year-olds was the largest group of Internet users in Kazakhstan

in July 2015, accounting for 32.1% of the total number. Kazakhstan: Breakdown of Internet Users, by Age Group and Gender, in %, July 2015

Source: TNS Web Index, Qreachers cited by Forbes, July 2015

12-17 11.3%

18-24 21.2%

25-34 32.1%

35-44 20.5%

45-54 15.0%

Female 52.2%

Male 47.8%

Overview Sales & Shares Delivery Products Users & Shoppers Players Payment Trends

Sample Report: CIS B2C E-Commerce Market 2015

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