AliExpress Russia AliExpress
Owners:
Alibaba Group - 47,85%
USM Holdings - 24,3%
VK (formerly Mail.ru Group) - 15%
Russian Direct Investment Fund (RDIF) - 12,85%
Mubadala Investment
AliExpress Russia is an online platform that specializes in selling a wide variety of products from around the world. Millions of brands and manufacturers from,,, and are registered on the site Russia Spain. Italy Turkey China AliExpress is among the top 10 most visited sites, and the mobile application is among the leaders in downloading for platforms and. iOS In addition to Android AliExpress, the company also develops a brand in Russia that Tmall specializes in selling goods of the most famous international brands.
Performance indicators
2023: Profit - 10 billion rubles
Net profit of Алибаба.ком LLC (RU) in 2023 reached 10 billion rubles, while in 2022 the main legal entity AliExpress in Russia (a joint venture of the Chinese Alibaba Group, Russian holdings VK and USM, as well as the Russian Direct Investment Fund (RDIF) and its co-investors) recorded a loss of 11.7 billion rubles. At the same time, revenue decreased by 36% and amounted to 10.5 billion rubles. This is evidenced by the reporting on RAS, which the company published in early April 2024.
As RBC writes with reference to the materials of Алибаба.ком LLC (RU), the company has been unprofitable at least since the creation of the joint venture in 2019. It follows from the report that "Алибаба.ком (Ru)" says that the company made its 2023 profit mainly from non-core income. The retailer's press service clarified to the publication that "in fact, the company did not have a profit."
 | In the data of "Алибаба.ком (RU)" for 2023, accounting income is displayed, in fact, "virtual profit," formed due to the forgiveness of an internal loan issued in 2021 from another company of the group, the company explained. |  |
According to reports, in 2023, "Алибаба.ком (Ru)" forgave an interest-free loan of 5.94 billion rubles. The representative of AliExpress CIS in a conversation with RBC noted that in accordance with the income tax reporting, the company ended 2023 without profit. According to the interlocutor, "Алибаба.ком (Ru)" is only one of the AliExpress legal entities in Russia, so its reporting does not reflect the financial results of the platform both in general and in the Russian Federation. And the actual loss of "Алибаба.ком (Ru)" for 2023 reached 2.6 billion rubles, it is indicated in the income tax declaration, the company added.
The decrease in revenue in LLC "Алибаба.ком (RU)" was associated with a reduction in local business and the share of own sales of the marketplace.[1]
2021
Turnover growth by 46% to 306 billion rubles
The total turnover from the sale of goods excluding services (GMV) "AliExpress Russia" in 2021 amounted to 306 billion rubles, which is 46% more than a year earlier. The turnover of local business (sales of goods from Russia) exceeded 110 billion rubles, an increase of 124% on an annualized basis and taking 36% of the retailer's total turnover. The company released such data on February 3, 2022.
The number of unique buyers for the year from Aliexpress Russia exceeded 28.7 million people. At the same time, the number of buyers of local goods increased 2 times over the year. The number of unique users in 2021 exceeded 80.2 million, which is 31% higher than last year, and the total registered audience exceeds 200 million users. The monthly audience (MAU) of AliExpress is 35 million people, the daily audience (DAU) is 12.5 million people.
The number of SPUs (unique commodity units excluding colors and sizes) delivered from China, Russia and other countries is more than 211 million and continues to be the largest in the Russian e-commerce market. The number of SPUs grew more than 52% year-on-year. The number of SPUs of Russian sellers increased by more than 184% over the year and amounted to 16.5 million. 3.2 billion SKUs are represented on the marketplace (+ 48% year-on-year).
The company said that the largest volume of purchases in Russia was made by residents of Moscow, St. Petersburg, Krasnodar, Nizhny Novgorod, Yekaterinburg, Kazan, Novosibirsk, Rostov-on-Don, Ufa and Samara. Overall, the number of Aliexpress sellers grew 69% over the year to more than 400,000. Of these, 102,500 are Russian, and this increased by 193% over the year.
The leaders in the number of orders made at the end of 2021 on the marketplace were goods from the categories "For Home and Garden," "For Beauty and Health," "Jewelry and Jewelry," "Car Parts," "Electronics" and "Tools."
Growth of turnover in the 1st half of the financial year to 133 billion rubles
The joint venture AliExpress Russia grew in the first half of the financial year (ended September 30). The turnover of the site increased to 133.3 billion rubles. According to this indicator, Ali is in the top three largest Russian players.
A significant part of trade already falls on domestic sellers - this is a third of the turnover of the site. Sales of their goods grew by 126% year-on-year.
Ali retains the first place in terms of the number of active buyers. Over the year, this figure has grown to 27.9 million people. The number of Russian sellers has also increased - now there are 75.5 thousand of them (+ 172%).
At the same time, the total number of orders reached 139.2 million in six months. According to this indicator, Ali falls into the top 2 of the Russian e-coma. If we talk about local sellers, then the number of orders has increased 5.5 times. In September, the average number of orders of local goods per day reached 100 thousand.
The fastest growing local categories of goods were:
- food (13,000% growth);
- electronic goods (subscriptions, certificates; growth of 7000%);
- products for weddings and holidays (an increase of 4,500%), clothing and accessories (an increase of 485%).
2020: Goods turnover - 229.3 billion rubles
On April 7, 2021, AliExpress Russia revealed annual figures for the first time. For the 12-month reporting period, the end of which fell on March 31, 2021, the company's turnover reached 229.3 billion rubles (excluding services). The turnover of goods from Russia during this period amounted to about 55 billion rubles and grew year-on-year by 151%.
In March 2021, the average daily number of local orders reached 64 thousand per day. The total number of unique buyers for the financial year exceeded 26.2 million people.
The monthly audience of AliExpress is 29.1 million people, the daily audience is 8.8 million people. The number of unique visits for the financial year exceeded 72.5 million, which is 30% higher than the previous year. According to this metric, according to Mediascope's own data and statistics (January 2021 data), AliExpress remains the most visited marketplace in Russia.
The range of AliExpress continues to expand: the number of unique product units excluding colors and sizes (SPU) with delivery from China and other countries by the end of the reporting year exceeded 139.2 million items. The number of SPUs of Russian sellers increased by 368% on an annualized basis - to 7 million.
The number of sellers from China and other countries on AliExpress is more than 225 thousand, their number increased by 50% over the year. The number of local Russian sellers increased by 350% and amounted to 45 thousand.
Popular categories by turnover (GMV):
- Phones
- Electronics
- Computers and office equipment
- Automotive Parts and Accessories
- Home and Garden Products
- Tools
Top categories by number of orders:
- Home and garden products (more than 32 million orders made per year)
- Products for beauty and health (more than 30 million orders were made per year)
- Jewelry and jewelry (20.5m orders)
- Electronics (20 million orders)
- Sporting goods (15.6 million orders)
- Instruments (11 million orders)
The most popular categories by turnover (GMV):
- Automotive parts and accessories (up 367%)
- Instruments (up 306%)
- Computers and office appliances (up 168%)
- Phones (up 104%)
- Home appliances (up 84%)
- Electronics (up 73%)
Top categories by number of orders:
- Electronics (1.7 million orders with 124% growth)
- Phones (1.5 million orders with 105% growth)
- Beauty and health (1.3 million orders with 378% growth)
- Home appliances (1.3 million orders with 87% growth)
- Home and garden products (1.2m orders with 701% rise)
- Automotive Parts and Accessories (1M Orders with 872% Growth)
The most growing categories by number of orders are: food, electronics, hair accessories, home appliances, motorcycle accessories, safety products, office and school stationery.
As of April 2021, AliExpress has 20 thousand partner points for issuing orders (branches and checkpoints). In the reporting fiscal year, AliExpress orders began to be issued in branches Coherent"" (including branded AliExpress), branded checkpoints appeared, operated by the logistics operator Tsainyao (more than 1,000 points), and branches with Russian Post. As part of the development of fulfillment, a partner warehouse of another 10 thousand square meters was added to 20 thousand square meters of the warehouse in Domodedovo. Podolsk
In fiscal 2021, the company plans to increase fulfillment areas in Moscow and other Russian cities to 100 thousand square meters thanks to a partnership project with Russian Post and a partnership with Tsainyao.
The partnership with VKontakte and Odnoklassniki began to bring the first results: the launch of native mobile applications and integration into social mechanics brought 1.2 million new buyers and an audience of more than 8 million AliExpress users.
AliExpress Russia plans for fiscal year 2021 (April 1, 2021 - March 31, 2022) to continue to multiply the range of local sellers and their turnover, increase logistics capacity and fundamentally improve customer experience, launch an updated product (web version and mobile application) developed in Russia, launch an updated loyalty program for users, as well as develop services launched in 2021.
History
2024: Termination of payments in rubles
At the end of May 2024, Alibaba stopped accepting payments in rubles and no longer allows delivery to Russia. According to Kommersant, the site does not accept payment from Russian cards, except for some banks. The same customers who use the payment means of Kazakhstan, Kyrgyzstan or Armenia will have to resolve issues with sending and come up with some kind of transit schemes[2]
2023: Russia's AliExpress becomes only major Marketplaces of facing outflow of sellers
The number of sellers at the AliExpress Russia site in January-May 2023 decreased by 27% compared to the same period in 2022. This is the only major marketplace in the country that has faced an outflow of sellers. This is evidenced by the data of the Point Marketplaces service, which were released in mid-June 2023. Read more here.
2022
Russian marketplaces ahead of AliExpress in sales in the Russian Federation
At the end of November 2022, Marketplaces Wildberries Ozon were ahead by sales Russia the Chinese of AliExpress for the first time: Wildberries accounted for more than 50% of sales, Ozon took second place with a share of 29%, AliExpress closes the top three - 16%. This data MTS is evidenced by those announced on December 9, 2022. More. here
Grechin Sergey took over as CEO
In October 2022, it became known about the appointment of Sergei Grechin as the new general director of AliExpress Russia. The company said the decision to change management was made as part of an "internal reorganization." Sergei Grechin headed AliExpress Russia instead of Dmitry Sergeyev, who has led the business since 2019. Sergeyev will remain "within the AliExpress group," the company added. Read more here.
Closure of the Russian marketplace and refusal of large-scale logistics in the Russian Federation
After the start of the SVO of Russia in Ukraine, the Chinese Alibaba, and after it the rest of the shareholders refused to continue financing Aliexpress Russia, which did not have time to build the infrastructure necessary to compete with Wildberries and Ozon. By October 2022, Aliexpress Russia had already closed the local marketplace, stopped the promotion of its own service, reduced more than 50% of all employees and abandoned large-scale plans to build its own logistics.
Reduction of 40% of employees
On May 12, 2022, it became known about mass layoffs at AliExpress Russia. According to Vedomosti, it was reduced to 40% of the staff, and they dismissed mainly employees of areas that turned out to be "irrelevant" after the start of Russia's special military operation in Ukraine and the introduction of anti-Russian sanctions, this affected the export and import of goods (own purchases).
According to the general director of Infoline-Analytics Mikhail Burmistrov, whose words are quoted by the publication, almost all market participants, including Wildberries, are forced to reduce the export direction. Earlier in April 2022, massive cuts were reported to Ozon, although the company did not confirm this information. According to a representative of Sberbank, the company has vacant positions by May 12, 2022 and aims to "attract the strongest candidates from the market."
Market participants interviewed by the newspaper believe that AliExpress Russia has begun to change its development strategy and will switch completely to cross-border trade.
HeadHunter In noted that in March-April 2022, the number of open vacancies from e-commerce companies decreased significantly. There, logistics and administrative areas fell under optimization. According to the commercial director of HeadHunter Andrei Panteleev, "if the situation with demand and commodity supply worsens, the need for sales managers, consultants, procurement specialists, marketers may also fall."
Boris Ovchinnikov, partner of the analytical agency Data Insight, said that in April the number of online orders in the market as a whole decreased by about 10% compared to March. According to the expert, most online stores had a decline of about 30%. The indicators of marketplaces also fell, the source said.[3]
VK wrote off 10 billion rubles due to depreciation of the share
On April 28, 2022, VK reported a write-off of about 9.87 billion rubles due to an impairment of its stake in AliExpress Russia due to economic uncertainty that affects the e-commerce market. The relevant information is contained in the holding's statements for the first quarter of 2022. Read more here.
Stop accepting payments on all Russian cards
AliExpress at the end of April 2022 does not pay for purchases using bank cards issued by any Russian banks. If until recently Russians could pay for purchases with Mir bank cards, now this is no longer possible such actions are impossible and inaccessible.
Buyers from Russia have only one single option for payment through a QIWI wallet, but with an additional commission.
Start of construction of a fulfillment center in Yekaterinburg
AliExpress Russia February 7, 2022 announced the beginning constructions of the fulfillment center in. Yekaterinburg
The facility with an area of 74 thousand square meters. m. Will be commissioned in the third quarter of 2022.
Representatives of AliExpress Russia and Vice-Governor of the Sverdlovsk Region Oleg Chemezov held a working meeting at which they discussed the start of construction.
Construction began in December 2021, earthworks were completed in February 2022, four thousand piles were immersed (50% of the total volume). For construction, the company attracted more than 200 people from the Sverdlovsk region.
The capacity of the fulfillment center will be about 200 thousand shipments per day. The total volume investments is 6 billion rubles. This warehouse is necessary for the prompt delivery of AliExpress goods throughout the region. The goods of Russian sellers are planned to be delivered in 1-3 days.
| | Capital investments of large players developing infrastructure projects are important for the region. Such projects create additional jobs, contribute to the development of related industries, and also favor the development of small and medium-sized businesses. 90% of construction materials for the facility are purchased from enterprises of the Sverdlovsk region, which is traditionally strong in construction, said Oleg Chemezov, vice-governor of the Sverdlovsk region.
| |
| | Fulfillment Center in Yekaterinburg is the first regional warehouse AliExpress Russia, the construction of which will reduce the delivery time of orders from Russian suppliers to one day. In addition, we plan to establish deliveries of goods from China in transit through the Koltsovo airport. Such transit will be able to help handle more than 40 tons of cargo daily. Thanks to the favorable geographical position of Yekaterinburg, this will reduce the delivery time of goods from China to 7 days, noted Grigory Orlov, Logistics Director of AliExpress Russia.
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By the beginning of February, more than 3.6 thousand sellers from the Sverdlovsk region worked with AliExpress Russia - over the year their number increased 2.8 times. Half of them are individual entrepreneurs (1.8 thousand), 300 sellers are self-employed, the remaining 1.5 thousand are legal entities. In terms of the number of local sellers on AliExpress, the Sverdlovsk region is in the top 3 among all regions of the Russian Federation. The assortment in local stores is represented by goods for the home and garden (22% of Sverdlovsk sellers trade in this category), tools and goods for repair (11%), goods for the car (9%), sports goods (9%), beauty and health products (8%) and other products. In total, more than 2.1 million product items are presented in stores of sellers of the Sverdlovsk region on AliExpress. Over the year, this figure has grown 1.7 times.
2021
Raising $192 million in investments from Alibaba
In 2021, Alibaba invested $192 million in AliExpress Russia. This became known from the financial statements that the Chinese Internet giant published in July 2022.
As writes RBC with reference to these materials, Alibaba financed an investment round, in which the company's economic share in AliExpress Russia remained at about 48%. It also follows from the document that other owners of the Russian marketplace also participated in the additional round of financing. The names of the latter were not disclosed, but it is known that by July 2022, AliExpress Russia's shareholders are also (VK 15%), USM International (24.3%) and (Russian Direct Investment Fund 12.8%).
As the publication points out, in terms of turnover, AliExpress Russia ranks only third among marketplaces popular in the country. In the third quarter of 2021, Ozon for the first time bypassed AliExpress Russia in terms of general trade. At the end of 2021, this figure for Ozon reached 445 billion rubles, for the market leader Wildberries - 844 billion rubles.
The total number of sellers at the AliExpress Russia site by the end of 2021 amounted to 400 thousand, the number of Russian sellers increased by 193%, reaching 102.5 thousand.
| | In 2021, we almost completed the complete localization of the business, having built a full-fledged separate Russian company with its own technological base, "says Dmitry Sergeyev, CEO of AliExpress Russia. - We have opportunities and resources for active investments, primarily in the logistics infrastructure. We are convinced of the huge potential of the Russian e-commerce market and are confident that the struggle for leadership is just beginning on it. AliExpress has a unique assortment, a competitive local product and a huge user audience. Our main task in 2022 is to fundamentally improve the user experience and service so that our customers can receive goods from another country in a week, and from Russia - the next day, and at equally affordable and attractive prices.[4] | |
Quadruple logistics capacity
Before the start of the main sale of the year AliExpress Russia , it quadrupled the partnership logistics to ensure timely delivery during a period of increased demand. The company also doubled the number of employees on its own fulfillment in, Chekhov which works with local sellers. The company announced this on November 8, 2021.
Buyers of AliExpress Russia can use more than 30 thousand points of issue of orders (branches automatic post offices and). AliExpress orders are issued in stores, X5 Retail Group branches "" (Coherent including co-branded PVZ "Coherent" and AliExpress), branded checkpoints operated by the logistics operator Tsainyao (about 2 thousand points) and from the partner network, as well as in branches "" (Russian Post Office including branded AliExpress).
In total, the company's capacities can process up to 1.5 million local and up to 10 million orders of foreign goods per day.
Foreign goods are delivered by partner companies. For example, the company "Tsainyao" organizes 27 cargo charter flights a week with goods from AliExpress, for the delivery of orders from the sale their number will be doubled. In addition, foreign orders are delivered to Russia by rail and road, as well as by sea.
By 11.11, the company also launched the "Together - Faster" feature. It will allow buyers to combine orders from different foreign sellers into one package and receive it faster. Consolidation of goods in the application will increase the value of the shipment and increase its delivery status. In some cases, this can reduce the delivery time by two to three times.
AliExpress Russia became the owner of the controlling share of KazanExpress
At the end of October 2021, information appeared that AliExpress Russia became the owner of the controlling share of the KazanExpress marketplace. The financial terms of the transaction were not disclosed. Read more here.
Start of sales of food products from the Russian Federation abroad
On September 29, 2021, AliExpress Russia announced the start of sales of food products from the Russian Federation abroad. The category "food" with long-term storage goods from Russian sellers has become available to foreign buyers, the retailer's press service explained to TASS.
The first seller of the new category was Foodcode. She specializes in the production of foods from natural ingredients without gluten.
Products will be able to purchase not only Russian-speaking users, but also any foreign buyers of AliExpress Global.
During the start of this project, AliExpress Russia assumes all logistics costs. Sales through the platform will be carried out according to the classic cross-border B2C model. The goods will be delivered using the Russian Post.
At the same time, AliExpress Russia announced the opening of applications from sellers for participation in the export program in the category "goods for mothers and children." The marketplace intends to continue expanding the direction with new categories and manufacturers - over the past month, the number of foreign buyers of export goods has increased by 400%, a company representative told the agency. Since June 2021, the retailer has been exporting Russian goods to Europe, and Russian Post has also been delivering parcels.
The possibility of export sales on AliExpress is a good opportunity for Russian sellers, for whom cooperation with such a partner neutralizes all risks, says Data Insight partner Fedor Virin.
| | But in the total volume of AliExpress, this will be a drop in the ocean, and this business is unlikely to become significant in the coming years, "he said in a conversation with Forbes. | |
According to Virin, the Russian export market in online commerce occupies no more than $1 billion.[5][6]
Opening of the first own fulfillment center in Russia
AliExpress Russia opens its first own fulfillment center, thanks to which goods from local sellers will be delivered the next day after placing an order. The retailer announced this on September 2, 2021.
Fulfillment center with an area of 55 thousand square meters. m launched on the basis of the warehouse complex "PLT Chekhov" in the Moscow region. In addition to processing orders from Russian sellers, this warehouse will provide packaging and sorting services. The center is available to sellers from all regions and will allow you to ship goods throughout the country.
| | The development of the local segment of our business, that is, the sale of goods with delivery from Russia, is a priority for the near future. AliExpress has long consolidated its leadership position in cross-border business, we are also growing very actively in local e-commerce. Providing efficient logistics, fast delivery both with the help of partners and in-house is the most important step in this direction. That is why we add our own to partner logistics, which will help deliver the most popular goods the day after the order, - the words of the CEO of AliExpress Russia Dmitry Sergeyev are quoted in the message. | |
At the same time, AliExpress Russia will continue to cooperate with current logistics partners, including Russian Post, 5Post, Svyaznoy, Cainiao, etc.
By the end of 2021, the company intends to begin construction of fulfillment centers in Yekaterinburg, Kazan and Rostov-on-Don with a total area of at least 200 thousand square meters. m
According to its own data, the monthly audience of AliExpress in Russia and the CIS by the beginning of September 2021 exceeds 29 million people.
AliExpress has previously begun offering express delivery of goods from local sellers. So, on September 1, 2021, fresh flowers appeared in the marketplace catalog. Shops that are ready to deliver bouquets quickly can fall into a new category: in 2 hours or within 24 hours.
Raising $60.3 million from Mail.ru Group
On August 11, 2021, the Mail.ru Group announced the investment of $60.3 million in AliExpress Russia in exchange for additional shares of the company issued as part of a new issue.
By August 11, 2021, Mail.ru Group owns 15% of the economic and 17.6% of the voting share in the asset. After the completion of the round, which is planned in the fourth quarter of 2021, no significant changes in the company's shares are expected, the holding's press service reports.
It is assumed that the investments will accelerate the growth of AliExpress Russia in the local market. They will also help maintain a leading position in the field of cross-border e-commerce in Russia and implement plans for the development of the company. Additional funds will primarily be directed to the active development of logistics, expansion of categories, as well as to improve the level of service and improve customer experience.
The Mail.ru Group added that the company is investing AliExpress Russia together with other shareholders. Who invests the marketplace and how much is not specified. USM, which a few days earlier became a shareholder of the company, told Interfax that the holding plans to invest in AliExpress Russia without specifying details.
AliExpress Russia CEO Dmitry Sergeyev promised to disclose the total amount of investments and a new estimate of the company's value after the completion of the round of investments, according to a comment by a top manager received by Forbes.
In addition to Mail.ru, Alibaba Group owns shares in AliExpress Russia - the company has slightly less than 48%, and RDIF with Middle Eastern partners - they have 12.85%. In August 2021, USM holding became the owner of 24.3% of AliExpress Russia. The estimated value of AliExpress Russia by August 11, 2021 is not named.[7]
Megafon sold its stake in AliExpress Russia to USM International
On November 3, 2022, information appeared that the amount of MegaFon's transaction with USM amounted to 40.85 billion rubles. This information follows from the documents of Megafon[8]
In August 2021, it became known about the sale of the entire "To MegaFon share in" AliExpress Russia company. USM International We are talking about 24 million ordinary shares, which correspond to 24.3% of the authorized capital and 28.8% of the vote, the telecom operator said in a statement. The financial component of the transaction was not disclosed.
USM Investment had options (the right to redeem at a pre-agreed price) to purchase MegaFon's stake in AliExpress Russia. MegaFon emphasizes that initially the company was part of the shareholders of AliExpress Russia in order to "realize a number of synergies between our business and the e-commerce platform."
| | We are confident that the new ownership structure is more correct in terms of the further development of this company, - noted in MegaFon. | |
AliExpress Russia, commenting on the change of co-owner, said that they and USM "have many intersections."
| | USM's experience, knowledge and capabilities help in the construction of the largest e-commerce platform in Russia, the company said. | |
China's Alibaba Group, Mail.Ru Group and the Russian Direct Investment Fund (RDIF) have retained their stakes in the marketplace.
AliExpress Russia, which appeared as a joint venture of Alibaba Group of Chinese billionaire Jack Ma, Mail.Ru Group, MegaFon and the Russian Direct Investment Fund (RDIF), quickly became the most popular among Russians. From April 2020 to March 2021, the turnover of the joint venture increased to 229 billion rubles, of which 55 billion rubles fell on the Russian market. According to this indicator, the site was second only to the Wildberries store, in which it amounted to 437 billion rubles.
However, AliExpress Russia still does not bring profit. In the first half of 2021, the net loss increased to 967 million rubles.[9]
Start of export of Russian goods to the EU
On June 1, 2021, AliExpress Russia announced the start of exports of Russian goods to the countries of the European Union and other regions. Delivery will be carried out through the "Post of Russia." At the pilot launch stage, AliExpress Russia will bear all logistics costs, the company promises. Read more here.
Cainiao invests 4 billion rubles in a network of checkpoints for issuing orders with AliExpress throughout the Russian Federation
In mid-May 2021, Cainiao, part of the Alibaba Group, announced an investment of 4 billion rubles in logistics development in Russia by the end of the year. Half of these funds will go to expand the network of checkpoints - the number of such points is planned to be quadrupled. Read more here.
Investing in Kazan marketplace KazanExpress
On March 10, 2021, it became known about AliExpress Russia investing in the KazanExpress marketplace. Under the terms of the agreement, the investor receives 30% in the Kazan project. Read more here.
Plans to create a network of logistics centers together with Russian Post
Russian Post March 3, 2021 reported that together AliExpress Russia with signed an agreement on strategic partnership and agreed on the implementation of a development program logistics for the market Internet trade in Russia in 2021-2025. Partners will offer AliExpress Russia sellers a fulfillment service in a network of logistics centers throughout the country, where the Mail will store goods and complete orders with AliExpress. More. here
RDIF increased its stake in AliExpress Russia
On January 29, 2021, the Russian Direct Investment Fund (RDIF) announced an increase in its stake in AliExpress Russia (a joint venture of Alibaba Group, MegaFon, Mail.ru Group and RDIF). RDIF bought a 7.85% stake from Alibaba Group along with the Mubadala Investment Company investment platform and other sovereign wealth funds in the Middle East. Financial and other parameters of the transaction are not disclosed.
According to RBC, with reference to Alibaba's 2020 reports, the company owned about 55.7% of AliExpress Russia. Thus, as a result of the transaction, the share could be reduced to 47.85%. At the same time, Alibaba did not have a voting majority to control the joint venture.
The RDIF report notes that the fund reserved the exclusive right to buy a 7.85% stake back in 2019. According to RDIF CEO Kirill Dmitriev, the partnership with Middle East funds in the acquisition of AliExpress Russia shares emphasizes the high investment attractiveness of the joint venture in the international e-commerce market.
| | A significant increase in the volume of e-commerce makes it possible to predict further steady growth in AliExpress Russia, including in connection with the coronavirus pandemic and changes in consumer preferences in favor of online purchases. We hope that in the future AliExpress Russia will become one of the largest marketplaces in Europe, "he said. | |
Faris Al-Mazrui, head of the Mubadala Investment Company investment platform in Russia and the CIS, also stressed that the joint project has become especially relevant, since "the social and economic consequences of the coronavirus will continue to stimulate demand in the e-commerce segment."
RDIF added that AliExpress Russia is accelerating the development of Russia's growing digital economy by combining the resources and experience of all shareholders.[10]
Opening a service for storing and processing photos "Media Center"
AliExpress Russia on January 21, 2021 announced the opening of a media center for local sellers.
A built-in service for storing and processing photos has appeared on the marketplace - "Media Center." Unlike many other cloud services, which allow you to process and store up to 10 GB of files for free, the capacity of the Media Center will be 50 GB. As a result, Russian AliExpress sellers will be able to prepare and store tens of thousands of images for store design and product cards without leaving the platform.
| | For medium and large businesses, preparing images for online sales does not cause problems, because companies of this scale can afford the services of a photographer and designer. Self-employed, individual entrepreneurs and small companies often resolve the issue with their own resources, which can cause quality to suffer. The built-in image preparation tool will allow even small sellers to better present their products on the platform and improve their sales performance, "says German Weimer, Head of Platform Development for AliExpress Sellers Russia. | |
Using the Media Center, AliExpress sellers will be able to make basic edits to the photo, making it more suitable for online sales: remove the background, rotate or reflect the image, change the size or aspect ratio. Each finished photo is assigned a link that can be used to upload an item to the store on AliExpress via Excel.
Image preparation and storage is not the only service that AliExpress sellers can use for free. The platform offers a number of free logistics services, such as delivery of first orders and storage of goods for 60 days in the warehouses of fulfillment partners. Also, all AliExpress sellers do not pay a commission for the sale of the first 100 products and can use all tools for promoting the platform for free: live broadcasts (streams), promotions, promotional codes, coupons and much more.
2020
Start of sales in the marketplace on Odnoklasniki
Social network Schoolmates October 6, 2020 announced the restart of its own marketplace of goods together with. AliExpress Russia Read more. here
Increase in the number of sellers and goods by 2 times
By the end of September 2020, more than 22 thousand Russian sellers worked with AliExpress, with an assortment of more than 3.5 million goods. Compared to the spring of 2020, these indicators doubled: in March, there were 10 thousand sellers on the platform with an assortment of 1.5 million goods. The company announced this on October 5, 2020.
The fastest growing categories of the local marketplace are food and: electronics in six months the assortment of such products has grown 23 and 24 times, respectively. At the beginning of October 2020, Russian AliExpress sellers offer more than 100 thousand food products and more than 364 thousand goods in the Electronics section. Further, in terms of the growth rate of the assortment, there are categories of clothes, shoes and accessories, toys and hobby goods, as well as goods for school and office - here the assortment has increased 7 times since March. The number of local goods in the categories "Beauty and Health," "," "Sport Jewelry and Accessories" has grown 4 times in six months.
The growth of the local marketplace is explained not only by external factors, such as the search for retailers other online sales channels due to, quarantine but also by internal ones. In particular, in the spring of AliExpress, Russia canceled the commission for all new sellers for the first 100 goods or the first six months (whichever comes first). Then, together logistic with the operator "Tsainyao" (part of) Alibaba Group , the company introduced subsidies for delivery, which allow sellers to save up to 30% of logistics costs, and for sellers of the fashion category "Tsainyao" launched specialized sorting centers, which allow a third to reduce the time for sorting and sending goods to customers. Also on AliExpress appeared the AliExpress Plus section with faster delivery and standard delivery rates for buyers, which attracted users and encouraged sellers to go to the marketplace. In 2020, AliExpress was joined by food manufacturers and sellers such as "," "Tape AnderSon," "," clothing and Borjomi footwear sellers, including,,, Puma YOURS Kari, Tom Tailor chain "," electronic engineers Coherent jewelry brand and many Pandora others.
{{quote 'Russian sellers and goods occupy an increasingly important place on AliExpress. The Chinese range is still the leader, but local stores confidently compete in terms of delivery times and service level - including consulting the client before and after sale. And buyers vote with a ruble: for example, on the first day of the summer sale, the turnover of local sellers amounted to a third of the total turnover of the entire platform, and we are sure that this is not the limit, "says Dmitry Sergeyev, CEO of AliExpress Russia. }}
Mail. ru Group transferred $82 million as the final part of the contribution to the joint venture
In September 2020 Mail. ru Group transferred $82 million as the final part of the contribution to the joint venture.
Under the terms of the deal, a contribution from the Mail. ru Group in the JV was to include its Pandao e-commerce business, as well as a cash investment of $182 million, with the company making a $100 million contribution at the close of the transaction.
The rest of the amount was to be paid by the company in the next 12 months after the completion of the joint venture transaction.
2019
Completion of the formation of the joint venture AliExpress Russia
Alibaba Group, Megafon, Mail.ru Group and the Russian Direct Investment Fund (RDIF) on October 9, 2019 announced the completion of the transaction to create a joint venture. The deal involves the integration of key Russian consumer Internet and e-commerce platforms and the launch of a joint venture on social commerce in Russia and the CIS countries, which will operate in full compliance with federal legislation in the field of personal data protection.
The majority stake in the joint venture AliExpress Russia is owned by the Russian parties, and the Board of Directors includes representatives of Alibaba Group, MegaFon, Mail.ru Group and RDIF. Boris Dobrodeev will become the Chairman of the Board of Directors of AliExpress Russia JV. The parties appointed two general co-directors: Liu Wei, head of AliExpress Russia, and First Deputy General Director of Mail.ru Group Dmitry Sergeyev.
In general, the shares in the joint venture were distributed as follows:
- the Chinese Alibaba Group - 55.7% of economic rights (share in the authorized capital) and 49.9% of voting shares;
- Megafon has 24.3% of economic rights and 30.2% of the vote;
- Mail.Ru Group - 15% and 18.7%, respectively;
- RDIF - 5% and 1.2%.
The company was created on the basis of the Russian business of Aliexpress and Tmall and will serve cross-border and local online trading platforms. It is assumed that the joint venture creates favorable conditions for entrepreneurs, consumers and Internet users in Russia and the CIS, and also accelerates the development of the growing digital economy of Russia by combining the resources and experience of all shareholders.
Within the framework of the partnership, AliExpress JV Russia and Mail.ru Group entered into a strategic cooperation agreement, which implies, among other things, traffic exchange and product initiatives. AliExpress JV Russia will use the Mail.ru Group platforms to promote its services through exclusive integration solutions and marketing programs. As noted, the companies have already begun joint projects. Since February 2019, VKontakte users can purchase goods directly on the VK Apps platform. And in September 2019, the social network and AliExpress introduced the ability for users to receive money for reviews of online seller products.
It is noteworthy that Mail.ru seems to have become a backup option for the Chinese partner. Back in 2017, when German Gref made timid attempts to find a partner for the "Russian Amazon," Alibaba was the first to respond, but the deal never took place. According to The Bell, the authorities recommended Sberbank to choose a national player for the joint venture.
| | Alibaba remains focused on fulfilling our mission of "making it easier to do business anywhere." The AliExpress Russia joint venture is an important part of Alibaba's globalization strategy and a key step towards our long-term goal of helping 10 million small businesses achieve profitability and serve 2 billion consumers worldwide. Together with Mail.ru Group, RDIF and MegaFon, we aim to accelerate the development of the digital consumer economy in Russia and the CIS countries, allowing regional brands and SMEs to find and serve their target consumers thanks to our shopping conditions, "said Daniel Zhang, CEO of Alibaba Group. | |
FAS approval of the creation of the joint venture AliExpress Russia
The Chinese Alibaba Group, mobile operator Megaphone"," Mail.ru Group and the Russian Direct Investment Fund () RDIF received approval from the Federal Antimonopoly Service (FAS) to create a joint venture in the field - e-commerce AliExpress. Russia This is stated in the message of the Mail.ru Group dated June 5, 2019.
Alibaba Group will invest $100 million in the joint venture and transfer to it the Russian business of AliExpress and Tmail, owned by the group of trading platforms. The Chinese group will receive an economic interest of 55.7% and a voting interest of 49.9% in the joint venture.
Megafon will exchange its 10% economic stake in Mail.ru Group for a 24.3% economic stake in AlExpress Russia. This equivalent share is 30.2% of the total number of AliExpress Russia votes.
Mail.ru Group will transfer its platform for e-commerce Pandao to the new enterprise, and will also invest $182 million in the company. The economic share of Mail.ru Group in AliExpress Russia will be 15%, voting - 18.7%.
RDIF will invest $100 million in the joint venture. The fund will receive a voting stake in AliExpress Russia in the amount of 5%, equivalent to 1.2% of the total number of votes.
RDIF has an option to buy an economic stake in AliExpress Russia in the amount of 7.9% from Alibaba Group for $194 million. If implemented, the economic share of RDIF in AliExpress Russia will be 12.9%, voting 9.6%.
Accordingly, if options are exercised, Alibaba Group's economic share in the joint venture will decrease to 47.8%, voting to 47.6%. The voting share of Mail.ru Group will decrease to 16.3%, the voting share of Megafon - to 26.4%.
In addition, RDIF has an option to buy out another 4% of AliExpress Russia from Megafon. The amount of its implementation was not disclosed.
Thus, in total, Alibaba Group, Mail.ru Group and RDIF will invest $384 million in the new enterprise. The amount of investment by RDIF may increase by at least another $194 million.
A controlling stake in AliExpress Russia was received by Russian shareholders. The company will have two CEOs: one of them will be appointed by Alibaba Group, the other by Mail.ru Group.
2018: The intention of RDIF, Alibaba Group, Megafon and Mail.Ru Group to create a joint venture in the field of e-commerce
The Russian Direct Investment Fund (RDIF), Alibaba Group, Megafon and Mail.Ru Group will create a joint venture to integrate key consumer Internet and e-commerce platforms in Russia.
As part of the partnership, a joint venture will be formed, built, among other things, on the current AliExpress business in Russia. The parties will combine strategic assets and invest new capital, management, resources and expertise in order to create favorable conditions for retailers, consumers and Internet users of Russia and the CIS, as well as accelerate the growth of the digital economy in Russia, the companies said in a joint statement.
Under the terms of the deal, Alibaba Group will make AliExpress's business in Russia part of the new joint venture, which will include Alibaba Group's current local and cross-border operating assets in Russia, including the business of the international e-commerce platform AliExpress and the Russian B2C platform Tmall. In the future, Alibaba Group will invest cash and other resources in the joint venture to maintain its activities.
RDIF will become a strategic participant in AliExpress Russia, acquiring a total stake of 13% by investing capital and acquiring an additional stake in the joint venture from Alibaba Group.
Megafon will sell its 10% stake in Mail.Ru Group to Alibaba Group in exchange for a 24% stake in AliExpress Russia. Mail.Ru Group, in turn, will transfer to the joint venture its e-commerce business Pandao, cash, as well as distribution in the format of integration with Mail.Ru Group products. The company's share in AliExpress Russia will be 15%.
In addition, AliExpress Russia and Mail.Ru Group will conclude an agreement on strategic cooperation, which implies, among other things, the exchange of traffic and product initiatives.
Within the framework of the joint venture, it is planned to expand the ecosystem and the possibilities of everyday use of the service by investing in other businesses together with Mail.Ru Group, including FoodTech and other areas.
After the completion of transactions under the conditions for closing the transaction and its approval by all partners in the joint venture, Alibaba Group (48%), Megafon (24%), Mail.Ru Group (15%) and RDIF (13%) will become the owners of AliExpress Russia. The activities of the joint venture will be carried out in all segments of e-commerce, including in cross-border and local marketplaces, as well as their own direct sales.
Thanks to a partnership with Mail.Ru Group, AliExpress Russia will have access to a hundred million audience of the Russian Internet platform in social networks, instant messengers, e-mail and online games. Having access to this audience, the joint venture will be able to create a single platform for social communication, games and purchases.
It is planned that the joint venture will create wide opportunities for Russian small and medium-sized businesses. Domestic companies will have access to an extensive ecosystem that allows local entrepreneurs to sell goods in their country and abroad. Alibaba platforms are used by more than 600 million consumers; thus, the Russian SMB segment will have access to a market four times the population of Russia, which includes consumers from China, Southeast Asia, Turkey, Europe, India and other countries.
In addition, the parties believe that thanks to the unique advantages of each of the parties to the agreement, including experience in the field of e-commerce, in the segment of social networks and digital media, in logistics and in working with the local market, the partnership will help accelerate the development of the digital economy in Russia. It will also contribute to long-term technological cooperation and the construction of a commercial infrastructure in Russia and the world.
| | This partnership is an important stage in Alibaba's international expansion: it will unite local market leaders with our global ecosystem. The partnership of AliExpress Russia with a leading Russian Internet company will help digitize and transform the retail value chain in Russia, providing unhindered and innovative experience for consumers, as well as providing Russian entrepreneurs and representatives of small and medium-sized businesses with significant growth opportunities in the domestic market and international expansion. Our experience in the market of China and other countries of the world makes us unique specialists in supporting the construction of commerce infrastructure in Russia and the CIS, "said Michael Evans, President of Alibaba Group. | |
The deal is expected to close in the first quarter of 2019.
2015: Meeting of representatives of Roskomnadzor and AliExpress on the implementation by the company of the law on the localization of PD bases in the Russian Federation
Representatives of AliExpress announced in April 2015 about the understanding of the legal field of the Russian Federation and the desire to follow the requirements of the legislation applicable to the company. On April 13, 2015, a meeting was held between representatives of Roskomnadzor and AliExpress, the business division of Alibaba Group, on the implementation by the company of the law on the localization of personal data databases in the Russian Federation.
The meeting with Deputy Head of Roskomnadzor Antonina Prizhedeva was attended by AliExpress Technical Director Dunbai Go and AliExpress Business Development Director in Russia and the CIS Mark Zavadsky.
LLC "Алибаба.ком (RU)" was registered on May 15, confirmed the director of business development AliExpress in Russia and the CIS Mark Zavadsky. According to him, he was appointed general director of Алибаба.ком (RU), while he still remains the director of business development at AliExpress in Russia and the CIS.
Mark Zavadsky: Historically, Alibaba works hard enough with sellers. Especially if we are talking about some kind of promotional programs, promotion - we rather severely knock out the best prices from sellers, we know how to negotiate with them. We have margin on turnover. We take 5% of the store turnover, and that's it. Moreover, this cost includes all payment commissions, there Qiwi, Yandex.Money. It is already small, and it can also be reduced by a payment commission.
Notes
- ↑ AliExpress in Russia made a profit due to forgiven debts of ₽8,4 billion
- ↑ Alibaba returns payments
- ↑ AliExpress Russia reduces employees of "unnecessary" departments
- ↑ Jack Ma company revealed the latest investment in AliExpress Russia
- ↑ AliExpress Russia began selling food products from the Russian Federation abroad
- ↑ AliExpress Russia will begin exporting Russian goods to Europe
- ↑ Mail.ru Group additionally invests $60.3 million in AliExpress Russia JV
- ↑ Megafon sold its stake in AliExpress-Russia for 40.8 billion
- ↑ Termination of the issuer's right to dispose of a certain number of votes attributable to voting shares (shares) constituting the authorized capital of an individual organization
- ↑ RDIF and partners acquired a 7.85% stake in AliExpress Russia JV from Alibaba Group
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