Expert review «TOP‐25 KZ Retail e‐commerce. Leaders of the categories and perspective for the development of market segments

1.

Expert review «TOP‐25 KZ Retail e‐commerce, 2016.
Leaders of the categories of 2016 and perspective for the
development of market segments».
Speaker: Ramina Nazyrova, MBA
Director of Baker Tilly Kazakhstan Advisory LLP
Almaty, 21 of September 2017

2.

Content
Section
1. The size of the global market and Kazakhstan market of «e-commerce». Statistics
page
3-7
- The global market
4
- Kazakhstani market
5
- Share of Kazakhstani e-commerce in 2016, % on a regional scale
6
2. Market structure of KZ e-commerce in the context of players and categories
7-10
- e-shops B2C (goods and services) and trading platforms C2C
8
- Ranking “TOP-25 KZ Retail E-Commerce, 2016”
9
- TOP-25 internet platforms in the Republic of Kazakhstan by categories in 2016
10
3. The main trends in the e-commerce market in the Republic of Kazakhstan
4. Contact details
11-12
13
2

3.

The size of the global market and Kazakhstan market of
«e-commerce». Statistics.
3

4.

The size of e-commerce market
The global market
According to Remarkety in 2016, 53% of Internet users or 1 billion of population made on-line
purchases. At the same time, 65% preferred to make purchases on the global market rather
than on the local market in case of fair market price.
The volume of the global e-commerce market in 2016 amounted to $ 1.86 trillion. According to
eMarketer, in 2017 the growth of the global retail e-commerce will amount to 23.2% and will
reach $ 2.29 trillion, in 2021 - $ 4.48 trillion. The share of the e-commerce market in the volume
of global retail in 2016 was 9%, it is projected to grow from 10 to 16% in the next 5 years.
In the regional context - China and the United States account for 75% of the global e-commerce
size or $ 1.4 trillion, due to the forecast data in 2017, the total amount will be about $ 1.6 trillion
sales.
The main driver of growth in China in 2016 is the Marketplace "Alibababa", the number of active
customers has reached 443 million, while the country has a huge growth potential, with a
population of 1.38 billion people, the Internet penetration rate is about 52% or 721 million
Internet users.
In the USA, the penetration rate of the Internet reached 88.5%, while the number of users of
mobile devices amounted to 232 million (72% of the population), therefore the size of sales
from mobile devices increased to $ 115.9 billion.
Breakdown of the global e-commerce
market by countries in 2016
Source: Remarkety
6%
4%
7%
9%
Total:
$1.86 trln.
54%
China
USA
UK
Japan
Germany
Other
21%
Dynamics of the volume of the global e-commerce market, 2016-2021
TOP-5 countries in the global e-commerce market, 2016
Source: eMarketer
Source: MNE RK Committee on Statistics
USD trillion
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
4.479
3.879
3.305
2.774
2.29
1.86
25%
23%
21%
9%
10%
2016
2017П
19%
17%
16%
12%
13%
15%
15%
2018П
2019П
2020П
2021П
Volume of the market, trillion. $
Increase
% retail sales
Confidentially. All rights reserved. Baker Tilly Kazakhstan Advisory 2017
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Place
Country
Market size,
$ trillion
Share in the
structure, %
1
China
1.00
54%
2
USA
0.40
21%
3
United Kingdom
0.17
9%
4
Japan
0.12
7%
5
Germany
0.11
6%
Others
0.07
4%
1.86
100%
Total:
4
75%

5.

The size of e-commerce market
Kazakhstani Market
The size of the e-commerce market in Kazakhstan in 2016 amounted to 226.4 bln. KZT (about $ 660 TOP-5 categories of services sold through
million), which is an increase of 45.4% compared to the previous year. According to players, the size of retail on the Internet in Kazakhstan, 2016.
the market is about $ 1 billion.
Source: MNE RK Committee on Statistics
The share of the e-commerce market of the Republic of Kazakhstan from retail trade turnover is less than
10%, in the future growth is up to 15-18%, and after a couple of years up to 30%.
What contributes to the growth of e-commerce? "The experience of developed countries": 1) the growth
of penetration of the Internet; 2) the increase of people's confidence in online shopping.
Statistics of penetration in major cities and regions of the Republic of Kazakhstan in 2016 (per 100
people): Almaty - 50; Astana - 15; Karaganda region - 12 (MHE Committee on Statistics of the Republic
of Kazakhstan);
According to the players the audience becomes more adult, and therefore more solvent;
The growth in the volume of transactions in the e-commerce segment for 2016 was 0.9%, the average
check in retail e-commerce grew by 2.7%, in the wholesale segment by 30%, and in the services sector
by more than 120% .
Conclusion: the number of buyers almost did not change, while there is an increase in the solvency of
the population.
50%
Total: 80.2
bln. KZT
37%
Tickets
7%
Reservation
2%
Leisure and
2% 2%
entertainment
Advertising services
Intermediary services
Dynamics of the volume of e-commerce in
Kazakhstan, 2014-2016.
Breakdown of the e-commerce
market, 2016
TOP-5 categories of goods sold through
retail on the Internet in Kazakhstan, 2016
Source: MNE RK Committee on Statistics
Source: MNE RK Committee on Statistics
Source: MNE RK Committee on Statistics
250
200
226.4
165.6
155.8
150
80.2
35%
35%
Total: 226.2
bln. KZT
39.2
73.5
17%
67.7
100
37%
Total: 78.5
bln. KZT
15%
65.7
50
50.8
41.3
50.9
2014
2015
30%
78.5
0
Retail
Wholesale
2016
Realization of services
Confidentially. All rights reserved. Baker Tilly Kazakhstan Advisory 2017
Retail
Wholesale
Realization of services
10%
11%
10%
Construction Materials
Cosmetics
Electronics
Auto spare parts
Shoes
5

6.

Share of Kazakhstani e-commerce in 2016
On a regional scale
Northern region
KZT 0,26 bln, 0,3%
Pavlodar
KZT 0,10 bln, 0,5%
Kostanay
KZT 1,18 bln, 2,7%
Western region
KZT 6,08 bln, 2,7%
Akmola region
KZT 0,98 bln, 0,4%
Astana
KZT 16,96 bln, 7,5%
Aktobe
KZT 1,76 bln, 0,8%
Eastern region
KZT 1,00 bln, 0,4%
Karaganda
KZT 26,92 bln, 11,9%
Atyrau
KZT 1,87 bln, 0,8%
Almaty region
KZT 0,47 bln, 0,2%
Kyzylorda
KZT 0,40 bln, 0,2%
Mangistau
KZT 0,00 bln, 0,001%
Zhambyl
KZT 0,89 bln, 0,4%
Southern region
KZT13,65 bln, 1,6%
Republic of Kazakhstan
Almaty
KZT162,6 bln, 71,8%
Σ
226,4
78,5
67,7
80,2
bln. KZT
TOTAL
bln. KZT
retail
bln. KZT
wholesale
bln. KZT
services
Confidentially. All rights reserved. Baker Tilly Kazakhstan Advisory 2017
100,0%
share
45,4%
Increase %,
2016/2015
6

7.

Market structure KZ e-commerce in the context of
players and categories
7

8.

Structure of the e-commerce market in KZ
In the context of players and categories
e-shops (B2C)
33
The largest players in the segment of e-commerce in Kazakhstan in 2016: online stores and
Electronics
8
trading platforms, the total revenue of which is more than 50% of the size of the e-commerce
technodom.kz
1
market in Kazakhstan:
shop.kz
1
e-shops B2C (goods and services):
mechta.kz
1
chocomart.kz
1
Clothes (lamoda.kz, wildberries.kz, otto-trade.kz, quelle-kz.ru, bonprix.kz, fashionpark.kz)
sulpak.kz
1
Passenger Transportation (airastana.com, epay.railways.kz, scat.kz, flyqazaq.com)
disti.kz
1
alser.kz
1
Ticket selling (aviata.kz, chocotravel.com, tickets.kz, ticketon.kz, santufei.com)
fora.kz
1
Electronics (sulpak.kz, technodom.kz, shop.kz, alser.kz, mechta.kz, disti.kz, fora.kz,
Niche Shops
6
chocomart.kz)
lensmark.kz
1
toptyres
1
Niche Shops (avon.kz, flip.kz, ecar.kz, lensmark.kz, otvertka.kz, toptyres.kz)
otvertka.kz
1
Mailing (post.kz)
ecar.kz
1
avon.kz
1
Food delivery (chocofood.kz, foodpanda.kz)*
flip.kz
1
Different types of services (office-expert.kz, homsters.kz, gulder.kz)*
Ticket selling
5
ticketon.kz
1
trading platforms C2C:
aviata.kz
1
Marketplaces (kaspi.kz, satu.kz)
tickets.kz
1
chocotravel.com
1
Classifieds (kolesa.kz, krisha.kz, market.kz, olx.kz)
santufei.com
1
Daily-deal services (coupons) (chocolife.me, besmart.kz)
Clothes
4
Price-aggregator (prodengi.kz)*
wildberries.kz
1
Otto-trade.kz, Quelle-kz.ru, Bonprix.kz
1
* categories which not included in the TOP-25 KZ Retail e-commerce.
fashionpark.kz
1
lamoda.kz
1
Passenger Transportation
4
Trading platforms (C2C)
7
An average USD/KZT exchange rate in the
scat.kz
1
Classifieds
3
full calendar year 2016 was 342.16 tenge
flyqazaq.com
1
Kolesa.kz, Krisha.kz, Market.kz
1
airastana.com
1
olx.kz
1
Out of the 40 players, the ranking
epay.railways.kz
1
Daily-deal services (coupons)
2
included
companies
capable
of
Service
3
chocolife.me
1
generating
more
than
$
2.5
million.
The
gulder.kz
1
besmart.kz
1
selection was made among the taxpayers
office-expert.kz
1
Price-aggregator
1
of the Republic of Kazakhstan, in terms
Homsters.kz
1
prodengi.kz
1
Food delivery
2
Marketplaces
1
of Revenue from e-commerce following
foodpanda.kz
1
kaspi.kz
1
the results of the full calendar year 2016.
chocofood.kz
1
satu.kz
1
Mailing
1
The overall result
40
8
post.kz
Confidentially. All rights reserved. Baker1Tilly Kazakhstan Advisory 2017
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
4.

9.

Ranking “TOP-25 KZ Retail E-Commerce, 2016” (Revenue > $ 2.5 million in 2016)
Revenue, $
mln (2016)
Revenue, $
mln (2015)
Growth rate,
% (2016/2015)
Head office
Year of
start-up
airastana.com
75.0
63.6
18%
Almaty
2008
lamoda.kz
67.7
66.2
2%
Moscow
2012
3 Avon Cosmetics Kazakhstan LLP
avon.kz
43.5
n/a
n/a
London
2003
4 Aviata LLP
aviata.kz
40.0
26.5
51%
Almaty
2013
* 5 Kaspi Shop LLP
kaspi.kz
35.0
n/a
n/a
Almaty
2014
* 6 Wildberries LLP
wildberries.kz
34.2
28.8
19%
Moscow
2012
chocotravel.com
19.5
17.1
14%
Almaty
2013
Otto-trade.kz, Quelle-kz.ru,
Bonprix.kz
15.5
30.0
-48%
Hamburg
2014
sulpak.kz
15.2
16.5
-8%
Almaty
2009
technodom.kz
shop.kz
epay.railways.kz
13.7
13.7
12.4
14.4
11.8
17.2
-5%
16%
-28%
Almaty
Karaganda
Astana
2005
2000
2008
post.kz
10.2
n/a
n/a
Astana
1993
alser.kz
tickets.kz
10.0
9.9
6.8
1.9
47%
n/a
Almaty
Vein
2011
2009
mechta.kz
9.8
8.2
19%
Astana
2011
flip.kz
Kolesa.kz, Krisha.kz, Market.kz
8.4
7.7
7.9
7.0
7%
10%
Karaganda
Almaty
2007
2006
19 Redprice LLP
chocolife.me
7.3
6.2
19%
Almaty
2011
20 Airline SCAT JSC
scat.kz
4.9
3.5
40%
Shymkent
1997
olx.kz
3.8
4.1
-7%
Kiev
2007
22 LCH LLP
disti.kz
3.7
3.9
-4%
Almaty
2009
23 Ticketon Events LLP
ticketon.kz
3.2
2.9
11%
Almaty
2012
fora.kz
2.9
2.8
6%
Aktobe
1997
chocomart.kz
2.5
2.0
25%
Almaty
2012
№
Company name
1 Air Astana JSC
* 2 Kupishuz LTD
7 Internet Tourism LLP
* 8 Otto Group Kazakhstan LLP
9 Arena S LLP
* 10 Technodom Operator JSC
* 10 Belyy veter KZ LLP
* 12 "NC" KTZh JSC
13 Kazpost JSC
* 14 Gulser Computers LLP
* 15 Tickets KZ LLP
16 Mechta Market LLP
* 17 Flip.kz LLP
* 18 Kolesa LLP
* 21 OLX Group LLP
* 24 FORA TRADE LLP
25 Internet Retail LLP
Project website
• The results were obtained on the basis of analysis of expert data.
Source: Forbes.kz, September 2017 No. 09 (73). Ranking was compiled by Baker Tilly Kazakhstan Advisory LLP team, based on data from players and market experts, as well as
open source data. Cross-checking was carried out through processing of Qazkom (homebank.kz).
9

10.

TOP-25 internet platforms in the Republic of Kazakhstan category structure, 2016
Growth rate,
Average monthly
Average bill, KZT
.№
Segment / Category / Site
Revenue, KZT mln.
Revenue, $ mln.
% (2016/2015)
I.
1
2
3
4
5
6
II.
1
2
3
e-shops (B2C)
Clothes
lamoda.kz
wildberries.kz
Otto-trade.kz, Quelle-kz.ru,
Bonprix.kz
Passenger Transportation
airastana.com
epay.railways.kz
scat.kz
Ticket selling
aviata.kz
chocotravel.com
tickets.kz
ticketon.kz
Electronics
sulpak.kz
technodom.kz
shop.kz
alser.kz
mechta.kz
disti.kz
fora.kz
chocomart.kz
Niche Shops
avon.kz
flip.kz
Mailing
post.kz
trading platforms (C2C)
Marketplace
kaspi.kz
Classifieds
Kolesa.kz, Krisha.kz, Market.kz
olx.kz
Daily-deal services (coupons)
chocolife.me
traffic, units
(2016)
142,349
416.0
40,185
23,179
11,700
117.4
67.7
34.2
2.3%
18.7%
983,250
928,583
20,000
15,000
5,305
15.5
-48.3%
34,333
15,330
31,593
25,665
4,257
1,671
24,838
13,690
6,664
3,402
1,083
24,452
5,198
4,694
4,685
3,422
3,345
1,268
1,000
840
17,781
14,900
2,881
3,500
3,500
92.3
75.0
12.4
4.9
72.6
40.0
19.5
9.9
3.2
71.5
15.2
13.7
13.7
10.0
9.8
3.7
2.9
2.5
52.0
43.5
8.4
10.2
10.2
17.9%
-27.7%
40.0%
572,177
510,333
60,083
75,366
5,347
34,000
51.0%
14.0%
n/a
11.0%
0.0%
-7.9%
-4.7%
16.0%
47.1%
19.2%
-3.7%
6.3%
25.3%
0.0%
n/a
6.6%
0.0%
n/a
286,750
104,167
66,333
721,395
441,758
838,667
723,583
488,917
255,167
36,000
325,333
107,333
184,000
480,083
318,667
74,519
72,289
75,000
5,465
54,825
42,752
54,000
84,045
50,000
18,700
50,000
56,500
13,394
10,000
900
18,410
53.8
0.0%
11,976
11,976
3,935
2,635
1,300
2,500
2,500
35.0
35.0
11.5
7.7
3.8
7.3
7.3
0.0%
0.0%
0.0%
10.0%
-7.3%
0.0%
18.6%
1,750,000
8,950,000
8,311,667
1,453,635
Total:
160,759
469.8
Source: Data of players and market experts, open sources, calculations of Baker Tilly Kazakhstan Advisory, Forbes.kz (data for 2015). Cross-check Qazkom.
68,432
4,338
10

11.

The main trends in the e-commerce market
11

12.

The main trends in the e-commerce market
The reasons for the growth of Internet purchases in the world and Kazakhstan
1) Switching to mobile devices :
• World statistics (eMarketer): China and India (> 70%), South Korea (59%), Germany, United Kingdom and USA (1/3 part).
• In Kazakhstan (according to experts) - more than 2/3 of Kazakhstan people visit e-shops from mobile devices.
- about 50% of e-commerce clients make purchases through the mobile version of the website.
- the value of 50% was achieved in the first half-year of 2016, today more orders are received from mobile
devices than from the Desktop.
> 40% of purchases are made through a mobile application, the share of the desktop and mobile devices are
almost equal.
2) The growth of bank card transactions in relative and absolute terms: in 2016 - 48% of the aggregate amount of online card
transactions was made in domestic online stores. The average bill of on-line transactions in 2016 exceeded 10,000 tenge.
Data of players:
- The introduction of a full-functional service for making payments on the site, now except for a cash payment
method or cash on delivery, you can pay on-line through a bank card.
- 65% of consumers pay for purchases with a bank card, while 35% prefer terminals. In the segment of online
ticket sales, the cash holdings in the holding account for no more than 6-7%, the vast majority of purchases
are paid by cards.
3) Increase in the methods of payment by virtue of fintech: growth in the p2p segment - lending. One of example:
The Wooppay project in the offices of Kazpost JSC: the introduction of shipments and the receipt of
electronic money in the offices, using the mobile phone balance or from the Wooppay wallet account in the
Kazpost departments.
4) Development of logistics and infrastructure: IT services, delivery of goods, increasing methods of payment, logistics
services:
The project post.kz - improvement of logistics service, by reducing the delivery time for parcels in Kazakhstan from
15 days to 6 days, from other countries from 45 days to 18 days.
In 2016 the launch of the project "direct mail", in 2017 the launch of the "fulfillment" project and the pilot project of the
"e-commerce center". Such projects contribute to the development of e-commerce in Kazakhstan.
Confidentially. All rights reserved. Baker Tilly Kazakhstan Advisory 2017
12

13.

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