November 19, 2017

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AliExpress eyes Russian e-commerce potential

by Stuart Wilson, Thursday 18 May 2017

Aliexpress-russia (1)

Online marketplace AliExpress has identified Russia as a market of significant growth potential, comparing the current levels of e-commerce development to the situation in China several years ago. The current situation with sanctions is also encouraging more brands from China, ASEAN and India to look at the opportunity to build channels in Russia. Chris Devonshire-Ellis of professional services firm Dezan Shira & Associates, stated: “AliExpress’s experience is really taking up the loose reins that the EU left dangling when they imposed sanctions on Russia. Europe will find they have no business opportunities to go back to in Russia once the sanctions are lifted.”

Devonshire-Ellis added: “Asia has been taking up the opportunities instead, and the creation of the Russia-Asia Trade Corridor is a hot subject right now. The supply chain is changing and Asian MNCs from China, ASEAN and India are all looking to get into the Russian market. The EU’s self-inflicted loss is Asia’s gain.”

Leo Shen, general manager of Chinese online retailer AliExpress, stated recently in an interview with Tass: “The Russian market has huge prospects. These are not general protocol words. I, indeed, think so. I visited Russia five times in the last two years and saw the Russian market has enormous opportunities of boosting the retail trade via e-platforms. Development of e-commerce in Russia resembles now the situation observed in China several years ago.” Leo Shen stated in an interview with Tass.

AliExpress is deploying a three-stage development strategy in Russia.

Shen explained: “The task of the first phase is to connect the Russian and the Chinese markets by means of a new online trading floor, to make Russian consumers accustomed to buying goods via the internet. It took us ten years in China to argue Chinese consumers into the advantages of e-commerce. Hence, we are forming an e-commerce concept through the AliExpress floor and help our payment and transport partners in Russia to develop an appropriate operating infrastructure”.

AliExpress is already popular in Russia and the e-commerce platform has a team of executives working inside Russia to help the business develop and expand.

Shen continued: “We initiated the second stage this year, where we plan to provide support to Russian manufacturers and trademarks in selling their products via the AliExpress platform on the domestic market. The third stage for Russia will be in helping small and medium Russian companies to enter international markets through our platform.”

The role of online marketplaces in Russia will form a core part of the conference programme at next month’s DISTREE Russia tech channel event in Moscow.

DISTREE Russia 2017

We are pleased to confirm that Channel EMEA is an official Media Partner for all DISTREE events in 2017, including DISTREE Russia. DISTREE Russia will return to Moscow in 2017. The country’s leading technology channel event will once again offer technology suppliers access to Russia leading retailers, e-tailers and resellers in one place at one time. DISTREE Russia will take place at Hotel Yahonty (www.yahonty.ru) in Moscow on the 21-23rd June 2017.

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