Led by Alibaba’s B2C subsidiary AliExpress, Chinese online retailers have gained a significant share of the Russian e-commerce market over the past two years. Of the 70 million orders that were shipped by foreign online retailers to Russia last year, more than two-thirds came from China, according to estimates cited in EWDN’s last market research.
More than 90% of these shipments are operated by the Chinese and Russian postal services, with most Chinese sites offering postal delivery as the only options to their Russian customers. Express shipment companies like CDEK and SPSR Express, as well as several smaller operators such as Express RMS and Shiptor, are working hard to break this quasi-monopoly.
After establishing an office in Beijing in August last year, CDEK is planning to create no fewer than 30 divisions in China in 2015. Through its contracts with local partners, the Russian company claims to be able to pick-up parcels directly from Chinese warehouses, which simplifies the whole process.
“We have enhanced our capacity to work with foreign partners, who have access to full-fledged transport hubs across the country. With more than 20,000 locations covered, virtually any Russian may order from China and receive the good at his doorstep,” CDEK CEO Leonid Goldort told East-West Digital News.
Hundreds of new pick-up points across Russia
On its side, SPSR Express announced last month a multifaceted partnership with AliExpress.
The Russian company will become the first Russian authorized express shipment operator for China Smart Logistics, the dedicated subsidiary of Alibaba, with its capacities fully integrated to the Chinese logistics network.
“For the first time, thanks to this partnership, the Russian customers of AliExpress will be able to fully track their package from sending to delivery point,” SPSR Express stated.
Packages will be delivered either by courier to the client’s address or via the pick-up point network and self-pick-up machines of PickPoint, a subsidiary of SPSR Express.
Opened in central Moscow in late January, this co-branded pick-up point is the first of a large network which SPSR plans to develop across Russia. (Photo credit: SPSR)
Moreover, SPSR Express has begun developing a network of new pick-up points specially dedicated to its new Chinese partner. The first facility was opened in a central location in Moscow in early February. It has the capacity to deliver up to 20,000 parcels a day, SPSR Express General Director Vladimir Solodkin told the Russian business daily Kommersant.
SPSR Express is planning to open hundreds of such facilities across the country over the next few years, investing “up to $10 million” in the project, said Solodkin.
From Turkey to Russia via the Chinese marketplace
In a separate agreement, AliExpress is teaming up with SPSR Express to open its marketplace, through a special section, to Turkish fashion brands willing to reach Russian online consumers.
Under the agreement with AliExpress, SPSR’s role goes beyond shipment and customs clearance. The Russian company will also organize the agreements with the Turkish partners, help them choose relevant assortments, and prepare product descriptions in the Russian language.
Gizia, Sassofono, Collezione, Avva, Marenero, Mapata, Faik Sonmez, and Guita were the first brands enrolled under this program. No fewer than 200 Turkish brands will be integrated by the end of this year, and up to 500 in 2016, AliExpress and SPSR announced.
Turkey might well be the next rising star of the Russian cross-border market, believe experts quoted in EWDN’s industry report.
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