Unprecedented Access to the Russian Consumer Market - Innovative Russian Trading System TetraMall Goes Global

Top Quote The innovative TetraMall Global Trading System that asserts the capability to provide a free flow of goods and services connecting Russia to the world, whether B2B or B2C, is now ready to enter the global market by opening up the English language section of its website. End Quote
  • New York, NY (1888PressRelease) July 03, 2013 - There are few international markets as coveted and at the same time difficult to approach by international merchants as Russia, with 142 million potential consumers and the SME segment dominating the trading sector with nearly 80% of the business. Characterized by a significant level of distrust toward foreign online commerce and an unease of doing business in other languages than Russian, getting a piece of the growing trade in Russia seemed an insurmountable challenge for a foreign new-comer to the market until recently.

    An innovative Global Trading System that asserts the capability to provide a free flow of goods and services connecting Russia to the world, whether B2B or B2C, is now ready to enter the global market by opening up the English language section of its website.

    The concept, one of a kind in the Russian market, was a major breakthrough for the local e-commerce and became an instant success, as Russia's first trading system designed to provide an integrated and effective interaction between distributors, wholesalers, and major operators. The proprietary protocol hssp (high speed synchronization protocol) tracks stock, availability and price changes, simultaneously connecting the electronic inventory control system to the client's own inventory and cash register, which insures that even purchases made offline are instantly deducted from the stock availability, while still preserving the possibility of pre-ordering the product in case of a temporary unavailability.

    TetraMall Global Trading System provides a software package and full services for online sales in Russia, through a single integrated solution, dealing with each aspect of the trade, from call center operations, payment, shipping and delivery, to financial responsibility for marketing and advertising, all in exchange for a commission on sales. Charges on connection to the website or operating fees are non-existent. Moreover, TetraMall guarantees each transaction (based on a pre-paid order, another innovative approach to the e-commerce market in Russia) and takes full responsibility for the product return if the purchase is completed entirely through its platform.

    The breakthrough of the solution came once the offline producers and traders grasped the overwhelming potential of having an online shop through TetraMall Global Trading System itself, with a national, and soon to be international exposure, without any prior investment or fees, whether IT or marketing related. TetraMall already caters to hundreds of businesses in Russia, acting as an agent managing retail operations for manufacturers and traders, and sharing the sales revenues with them.

    The Russian booming online market, one of the fastest growing in the world, has been subjected to multiple studies over the past couple of years, involving major institutions such as PwC and Moscow Higher School of Economics, and covering 80 Russian and international market players, from eBay and DHL to local retailers. The latest study shows that e-commerce market (not including cross-border sales) reached $10.5 billion in 2011, $13 billion in 2012 and could well reach $50 billion before the end of the decade.

    "Infrastructure, from broadband, to electronic payments, to logistics, improves slowly, bringing significant improvements in operating conditions year after year. But for foreigners to succeed in Russian e-commerce, a strong knowledge of local specifics is required," notes Vardan Gasparyan, senior consultant in supply chain management at PwC in Russia.

    "From an online marketing perspective, Russia is very different from the West; successful media buying requires other methods, Google and Facebook are not market leaders, promo-codes rarely work, RTB technology and affiliate marketing are underdeveloped. Yet, with the right strategy and budget you may still move a startup to sector leadership within a year," believes Dutch consultant and Acrobator CEO Bas Godska, who has been participating in the development of leading e-commerce companies in Russia since 2008.

    According to a study by Nielsen, the Russian consumer loves new products and innovations, tried-and-true brands, buys short-term (tends to satisfy an immediate need) and exhibits a high brand loyalty (43% of the respondents know beforehand which brand they will to choose when they will go shopping). Couple these trends with the fact that an import tax causes products bought in Russia to be up to 30% more expensive, and for personal-use purchases from abroad of up to $1,300 per month per receiver, Russians do not have to pay any tax, and you have a perfect scenario for a thriving sophisticated generation of active on-line shoppers.

    There is no doubt that e-commerce in Russia is synonymous to growth nowadays. There is no reason why international players can't have access to it, especially through the use of platforms like TetraMall Global Trading System. This user-friendly platform renders developing a presence in Russia not only possible, but also sustainable due to TetraMall becoming a common trusted partner for both international and local parties.

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