It’s time for a
Global Consumer Insights Survey 2019
PwC believes it’s time
to emphasise the importance of
customer experience.”
Executive summary

                             It’s now been a full decade since the economic
                             crisis ushered in what’s often called the “new
                             normal”, a supposed recalibration of what’s
                             possible in terms of global economic growth. But
                             the world’s consumers have displayed
                             unexpected resilience, driven by technological
                             advances that have unleashed a Golden Age of
                             consumption, offering a worldwide bazaar of
                             goods and services — open day and night — to
                             anyone with a mobile phone.

                             Not only are consumers the strongest link in the
                             global economic chain, but PwC’s 10th annual
                             Global Consumer Insights Survey (GCIS) —
                             which gathers the sentiments of more than
                             21,000 online consumers in 27 territories —
                             shows that technology has put them in a position
                             to demand a tailored, channel-agnostic, socially
                             conscious and social media-powered

                             Because consumers today are so discerning and
Martijn Peeters              powerful, it’s our perspective that most
Partner, Retail & Consumer   organisations need to invest far more in the
Leader                       customer experience. Retail evolution is driven
                             by the need to adapt to a changing environment
                             and respond to these challenges. Organizations
                             that fail to do so will lag behind on the path to
                             winning the customer.

                             This report is divided into two sections to help
                             start you on the path towards understanding
                             your customer:

                             • Key trends and changes of Russian
                               consumers behavior
                             • How to adapt business to changing consumer


 By federal districts

                   St Petersburg

             24%          14%

                                    10%                Far-East

                        16%                 9%           4%
 South and North

 By gender

     47            % Male                            Female       53   %

By age

                The Greatest       Generation Z
                Generation (52+)        (17-22)


                   28%                                          Young
 Generation X                            9%                Millennials
 (37-51)                                                       (23-26)


         Mature Millennials            Core Millennials
         (32-36)                                (27-31)

                                         Global consumer insights survey 2019   5
1               Key trends and changes
                of Russian consumers

01       Rapid growth of online shopping              Creating online channel and connecting it with
                                                      in-store shopping experience become crucial for
There is strong increase of online shopping in key    development for most of product categories.
categories, mostly driven by young millennials        Following the migration of consumers to mobile
with high income living in Moscow and                 devices, retailers should provide consumers
St Petersburg. Fast delivery becomes as               with easy-to-use mobile facilities and expand
important for consumer as prices and assortment       the delivery network of lockers and pick-up
when they choose a particular retailer.               points considering the traceability of deliveries.

          Demand for both digital and
 02       human in-store experience                   Retailers should focus on smaller formats and
                                                      create right shopping atmosphere paying
Russian consumers tend to do more daily               attention both to technological advancement
microtrips to nearest stores. They enjoy new          and store personnel skills and motivation.
digital services in stores and indicate easy
payment, customization and helpful assistants as
key imperatives that improve their shopping

         Growing influence of sustainability
 03      issues                                       Make sustainability a core part of a brand
                                                      strategy. Retailers have to support
Russian consumers care about sustainability           sustainable practices and projects so that
and ready to pay premium for organic and local        customers feel engaged when buying
products with eco-packaging. They actively use        products.
online channels to learn about sustainable
products before purchase.

         Strong shift to digital
 04      communication channels                       TV advertising remains important for reaching
                                                      out to the broad audience but retailers start
Communications market indicate a strong shift to      investing more in social media and
digital channels with personalized content, despite   personalizing ads with help of different agile
the fact that TV advertisements remains valuable.     metrics. Retailers need to encourage
Social media highly influence customers shopping      feedback from customers and learn to deal
decisions in different categories and has great       with negative reviews.
        on consumer trust.
How to adapt business
to changing consumer
                                                                 Understand your
                    Investing in employees
                                                                 customers based on
                                                                 their behaviour

    Customer experience exists in a             Consumer insights enable far greater
    feedback loop with employee experience.     personalization than the old-school paid
    An organisation trying to improve           media approach of segmenting
    customer experience without considering     customers by demographics alone.
    employees skills and motivation is
    missing an integral part of the equation.

                    Building                                     Treat consumers’ data
                    communities under                            with respect and deliver
                    your brand vision                            value in exchange for it
    It’s important to figure out what           Customers want the companies they
    employees and customers care about and      interact with to protect their personal data,
    to communicate your shared values.          and PwC research indicates that they’ll
                                                shop elsewhere if they don’t trust that a
                                                company is safeguarding it.

                    Building on                                  Win the customer
                    “magic moments”                              journey

    In an age of expanding digital options,     There are more trips, more choices. You
    consumer loyalty can vanish with the        can win customers online by understanding
    touch of a button. To minimise is, focus    what they are trying to experience and then
    on “magic moments” that earn loyalty        making it easier for them through easy of
    over time and create a relationship that    navigation, breadth and quality of selection,
    endures beyond the next product search.     price, quality of advice or exclusivity.
Rapid growth of online
Key insights
    Who                                                                                               p. 10-11
                                  • E-commerce market in Russia is constantly growing, reaching 1 150 B RUB in
How many of Russian
                                    sales volume and 75 M online users in 2018
consumers shop online?
                                  • The number of Russian consumers shopping online on a monthly basis
What e-commerce trends are
                                    reached 69% in 2018
expected in the future?
                                  • E-commerce market is expected to double by 2023

                                                                                                        p. 11-12
                                  • Central, Northwestern and Urals Federal regions provide a key contribution
What is the profile of the most     over 70% to online shopping
active shopper online?            • There is a direct correlation between consumers' income and online
How does online shopping            consumption as more that 82% of residents with income higher that 70K
frequency vary by generation,       actively shop online
income level and geography?       • Most frequent online shoppers are millennials: more that 80% shop online
    Where                                                                                               p. 14
                                  • Russian e-Commerce market is not yet consolidated, top-6 national players
Who is leading on Russian e-        account for 23% of the market
commerce market?                  • The trend for market consolidation will continue, resulting in 49% of national
What are the growth plans of        players' market share to 2023, mostly driven by Yandex.Market and Beru
top companies?                    • Aliexpress Russia is estimated to take 14% of Russian e-commerce market to
                                                                                                           p. 15
                                  • 21% of consumers shop only in Russian stores, whereas only 15% shop in
Where do shoppers make              foreign stores and 19% shop in both Russian and foreign stores
purchases online - in Russian     • Further regulation of Russian e-Commerce market puts pressure on foreign
or foreign market?                  retailers

p. 16-17
 What                                • Books and media entertainment is the leading category in on Russian e-
                                       commerce market as 13% of consumers buy it exclusively online.
Which categories of goods do
                                       Electronics devices sector is a runner-up with 9% of consumers buy it
customers buy exclusively online?
                                       only in online stores
Which categories indicated biggest
                                     • The fastest growing goods to be bought exclusively online are books,
growth in online sales?
                                       media entertainment – 3,8% growth and clothing & accessories – both
                                                                                                       p. 18-19
                                     • Russian consumers develop strong interest in adopting online grocery
How likely are customers to order
                                       shopping. 54% of consumers are likely to purchase grocery online over
grocery online?
What barriers do they see when
                                     • Two main barriers for e-grocery shopping are the desire to see and touch
buying grocery online?
                                       the products (67%) and concerns about quality (57%)
                                                                                                       p. 20-21
What devices do consumers use        • Mobile internet audience in Russia has grown up to 56% of total adult
for shopping?                          population in 2018
How often do they make               • 79% of Russian consumers use smartphones for online shopping in 2018.
purchases online via gadgets?          Daily shopping indicate 8% growth via mobile devices

How many customers currently                                                                           p. 22-23
own or plan to buy a voice           • Level of smart home voice assistants ownership is not quite high in
assistant?                             Russia - only 8%. Although 27% of Russian consumers have a stake in
What activities do consumers use       purchasing a voice assistant
voice assistants for?                • Currently 53% of consumers use voice assistant for searching products
How often do consumers shop via        and 36% buy products via voice assistants
home voice assistants?                                                                                   p. 24-25
 Why                                 • Around 70% of Russian consumers name better price, fast delivery and
What does consumer expect of           good assortment as three key successful online shopping factors
online shopping?                     • Youngsters are interested in best prices, returns and social media
What would make a successful           content
online experience for different      • Millennials want easy website and apps, unique assortment and helpful
genders and generations?               associates. Matures seek for fast delivery, trusted brand and items in
                                                                                                         p. 26-27
                                     • The speed of delivery is crucial for online retailer. 74% of consumers
What is good delivery experience
                                       believe that the most important delivery experience is to get the product
for a customer?
                                       as quickly as possible
How long consumers are willing
                                     • Russia is among top-3 countries which residents want the products to be
to wait for a delivery?
                                       delivered in a specific time slot (12%) or in a few hours (33%)
                                                                                                       p. 28-29
How to meet customers delivery       • Demand for fast delivery and specific time to borrow the purchase lead to
expectations?                          rapid growth of pick-up and locker delivery in Russia (+392% growth
What is the current trend on           since 2016)
e-commerce delivery?                 • Leading online retailers opened more than 4500 pick-up points in 2018.

Who      Where    What    How   Why

Russia is currently showing one of the
highest growth rates of online shopping

Figure 1. Percentage of respondents making an online purchase at least once a month, 2018


                                                      67%             71%
                                                              82%                     81%
                       57%                                            59%

                                                                    66%     57%       65%

                        67%                                 66%
      More than 80%
      From 70 to 80%
      From 60 to 70%
      From 50 to 60%
      Out of survey

Q: On average, how often do
you buy products online?                   63%
Respondents: 21,480
Source: PwC, Global Consumer
Insights Survey, 2019
                                                                                                      South Africa,

Figure 2. Countries with fastest growing online shopping rates, p.p., 2018

                                                 22                                              19
     Russia                                                   Poland
                                      17                                                     18

                                            20                                              17
 Malaysia                                                   Vietnam
                                       18                                                                  29

Who      Where    What     How      Why

                                                           E-commerce market in Russia is constantly
                                                           growing, reaching 1 150 B RUB in sales volume
                                                           in and 75 M Internet users in 2018.
                                                           On average, 67% of global consumers shop
                                                           online at least once a month. This is up to 5
                                                           p.p. more than in last year.

      69%                                                  China, Germany, the UK and Vietnam are the
                                                           leading countries, the leadership remains the
                                                           same from the last year.
                                                           Russia has shown high growth in both online
                                                           shopping audience and order frequency. The
                              Japan, 58%                   number of consumers who buy goods online at
     95%             Hong Kong, 76%
                                                           least once a month increased by 22 p.p. and
                                                           reached 69% of all respondents in our 2019
                      Philippines, 60%
   72%       87%       Singapore, 69%
                                                           In addition, 27% of respondents indicated that
                                                           they made online purchases at least once a
                       Malaysia, 70%                       week, an increase by 17 p.p. from the previous
     Indonesia, 64%                                        In 2018, Russia became one of the leading
                                                           countries in online shopping growth in terms of
                                                           both audience size and order frequency.
                     70%                                   From 2013 to 2018, Russian e-commerce
                                                           turnover doubled and, according to Euromonitor
                                                           forecasts, it will double again by 2023.
                                                           This suggests that rapid growth will continue to
                                                           be a trend in Russia’s online retail market.

                                                          The e-commerce consumption keeps posting
                                         14               double digit growth rates, this trend is set to
Hong Kong                                                 continue across all industries.
                                                          This grants good opportunities for retailers to
         Once a month            Once a week              reach and acquire target audience and sustain
                                                          growth by creating online spaces, connecting
Q: On average, how often do you buy                       them with in-store shopping experience and
products online?                                          turning to omnichannel business model.

Respondents:21,480                                                                                          11
Source: PwC, Global Consumer Insights Survey, 2019
Who    Where      What      How        Why

The most active online shoppers are
millennials with higher incomes, mostly
located in Russia’s central regions

Figure 3. Percentage of respondents who make an online purchase at least once a month
in Russia, by region, 2018

                                    St Petersburg
                                    78% + 42% weekly

       More than 70%
       From 60 to 70%          Moscow                       72%
       From 50 to 60%          74% + 33% weekly

       Less than 50%                                                            70%
Q: On average, how often do you buy products online?

Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Figure 4. Percentage of respondents making an online purchase at least once a month in
Russia, by income, RUB, 2018


                           59%                        56%


                           20,000                     40,000           70,000         100,000

Q: On average, how often do you buy products online?
Source: PwC, Global Consumer Insights Survey, 2019

Who       Where      What      How          Why

                                                                                   The main hubs of e-commerce growth in Russia
                                                                                   are St. Petersburg and Moscow. More than 40%
                                                                                   in St. Petersburg and 30% in Moscow shop
                                                                                   online at least once a week. Other regions with a
                                                                                   high share of active shoppers include the
                                                                                   Central and North-West Federal Districts, where
                                                                                   more than 70% of consumers shop online at
                                                                                   least once a month.
                                                                                   The key audience for online shopping is still
                                                                                   concentrated among consumers with above
                                                                                   average monthly incomes. Growth in online
         56%                                                                       shopping rates tends to be restricted to
                                                                                   consumers who earn more than RUB 70,000.
                                                                                   Further growth is directly linked with income
                                                                                   levels. More than 90% of consumers who earn
                                                                                   more than RUB 100,000 shop online at least
                                                                                   once a month.
                                                                                   Most frequent online shoppers are Mature
                                                                                   Millennials with more than 38% buying online at
                                                                                   least once a week. However, in general, the core
                                                                                   online audience is younger. More than 80% of
                                                                                   respondents aged 23 to 31 shop online at least
                                                                                   once per month.

                                                                                   Figure 6. Profile of most active shopper of
                                                                                   Russian online retailers, 2018
Figure 5. Percentage of respondents who
make online purchases, by generational
groups, 2018                       Once a month
                                                                                                                          Consumer profile
                                                                   Once a week

                                                                                                                           23-26 years old
                                81            71
    53                                                                                                                     lives in Saint-Petersburg

                 37             28            38            27                                                             self-employed
    17                                                                  19

    17     Z    Young
                  37            Core        Mature
                                              38         Generation The Greatest
  (17-22)      millennials      28
                             Millennials   Millennials     27X          19
                                                                     Generation                                            earns more than 100K RUB
                (23-26)       (27-31)       (32-36)       (37-51)      (52+)

Q: On average, how often do you buy products                                       Q. Do you shop at Russian online stores? (divided
online?                                                                            by age, generation, income, geography,
Respondents: 696                                                                   employment status)
Source: PwC, Global Consumer Insights Survey, 2019                                 Respondents: 696
                                                                                   Source: PwC, Global Consumer Insights Survey, 2019
Who        Where      What        How        Why

     Russian e-commerce market will continue
     to consolidate by national players

     According to Euromonitor data, 16% of                     Figure 7. Companies’ value shares of the
     the Russian online retailing market is                    Russian Internet retail market, %, 2018-2023
     taken by the third-party merchants                                                                                              100%
     Alibaba, Amazon and eBay. Alibaba
     stands out the most, as its audience
     expanded to 20 million active users in                                                                  49
     2018. Alibaba wants to increase its                            67        63
     presence in the Russian market by                                                                                         7
     creating a joint venture with                                                                              7
                                                                                                             7                 14
     Group, Megafon and the Russian                                                        7
     Direct Investment Fund.                                                  7            5                                   16
                                                                    7         2                                         15
                                                                    1                      12
                                                                    9         10
     Russian e-Commerce market is not
                                                                                                             22         24     25
     consolidated yet, top-6 national players                       16        18           20
     account for 23% of the market. The
     trend for market consolidation will                           2018      2019       2020                2021       2022   2023
     continue, resulting in 49% of national                        Yandex.Market + Beru                       Ozon
     players' market share to 2023, mostly                         Aliexpress Russia (Tmall)                  Wildberries
     driven by Yandex.Market and Beru.                             Other online stores
     Aliexpress Russia is estimated to take
                                                               Source: Morgan Stanley, 2018
     14% of Russian e-commerce market to

     Figure 8. Companies’ value shares of the Russian Internet retail market, %, 2018

             Adidas                                                         Amazon and eBay
             Asos                                                   16
             Bonprix, Otto        Shoppinglive
             Quelle, Witt         Sportmaster
             Detskiy Mir          Svyaznoy                                                              5
             Dochki Synochki      TsUM
                                                                         5 Mvideo
             Eldorado             Utkonos
              Vseinstrumenti          Others                                         3 DNS Group
             IKEA                 Market                  62                                            3
             Korablik             Yves Rocher                                                       3
             KupiVIP              Zara                                                          3           OZON
             La Redoute                                                                             Lamoda
             Meggy Mall

     Source: Euromonitor, Internet Retailing in Russia, 2019
Who        Where      What      How            Why

Increased shopping at Russian retailers is
driving online traffic

Figure 9. Top 10 Russian online retailers,    Russian online retailers are among the world
traffic, M visits, Q4 2018                    leaders in traffic. In February 2018, Wildberries
                                              was ranked first in terms of traffic among
                                              international clothing and footwear retailers,
Wildberries                    190
                                              followed by H&M, Zara and Asos.
                             159              Figure 10. Websites that Russians shopped
                                              on, %, 2018
OZON                         146

Mvideo                  80

Citilink                73                             21

Eldorado               72

                                                   Only in               Only in                 Both
Lamoda                61
                                                Russian stores       foreign stores

Svyaznoy           42                         Source: Data Insight, e-Commerce in Russia, 2018

Ulmart            31                          Russians now tend to buy products in Russian
                                              rather than international online stores, which
                                              has helped to drive traffic growth.
Bonprix          27

Source: SimilarWeb, 2019                      Russia is the last major emerging market
                                              without a dominant e-commerce player. Huge
                                              numbers of web-traffic of Russian retailers
                                              confirm big demand for online shopping.
The leading Russian online retailers
registered 881 M website visits (mobile       Russian retailers are planning aggressive
and desktop) in Q4 2018.                      campaigns in order to hold the leadership on the
                                              market. Newly created joint ventures Beru and
The top three retailers in terms of traffic   Bringly by Yandex (with Sberbank) or Aliexpress
are Wildberries, DNS-Shop and OZON,           Russia by Mail (with Alibaba) give dominant
whose websites are visited by a total of      players the access to capital and ability to
140-190 M consumers in Q4 2018.               leverage existing platforms.

Who         Where    What         How     Why

     Books, media entertainment, clothing and
     jewellery are fastest growing categories
     for exclusively online purchases

     Figure 11. EXCLUSIVELY ONLINE purchases by category, %, 2018 to 2017

                              Growth of EXCLUSIVELY ONLINE purchases by category, p.p.


                                                                   1,1               3,0               3,0

                                                      6,6%        5,9%              5,7%               5,6%

      Books, music,       Consumer           Household        Health & beauty   Jewelry/Watches     Clothing and
     movies and video electronics (incl.  appliances (incl.     (cosmetics)                        footwear (incl.
          games       cameras, TV, DVD        freezers,                                           sportswear, kids
                       players, etc.) and microwaves, etc.)                                         and babies)

     Q. For each of the following product categories, how many purchases have you made exclusively online
     Respondents: 696
     Source: PwC, Global Consumer Insights Survey, 2019

     Books and media entertainment is the fastest
     growing category of goods that people
     purchase exclusively online (3.8 p.p. growth).
     Also clothing & accessories are the fastest

     growing product categories to be bought
     exclusively online which indicate 3 p.p growth
     from last year. More people also purchasing
     groceries exclusively online (2 p.p. growth from
     last year).

     Books and media entertainment is the leading                               of respondents buy
     category in on Russian e-commerce market as
     13% of consumers buy books, music, media
     and video games exclusively online. Electronics
     devices sector is a runner-up as 9% of
                                                                9%              tech & electronics only
                                                                                in online stores

     consumers buy tech & electronics only in online
Who    Where    What   How      Why

  Purchasing exclusively online indicate
  growth across all categories of products

                   1,4               1,1             2,0                0,3

 5,5%             4,6%               4,5%           4,2%               4,0%

  Toys      Do-it-yourself/home      Sports         Grocery         Furniture and
               improvement      equipment/outdoor                    homeware

over the last 12 months?

                                                    Customers start to actively purchase online
                                                    product categories that do not require visual or
  of respondents buy                                kinesthetic experience. However, traditional
  books, music, media                               in-store products as jewellery and watches
  and video games                                   have made successful inroads to the e-
                                                    commerce market.
  exclusively online
                                                    Retailers should take immediate actions as
                                                    their customers are coming to online
                                                    channels: as the time flows, pure offline
                                                    players will be close to extintion.

Who             Where          What         How             Why

Most Russian consumers are ready for
online grocery shopping

Figure 12. Growth rate of the share of consumers that are likely to order groceries
online, p.p., 2018 to 2017

     22           20              19
                                               13              13        12            11
                                                                                                7         5
                                                                                                                   2        2




                                               Middle East




Q. Over the next 12 months, how likely are you to purchase groceries online?
Respondents: 21 480
Source: PwC, Global Consumer Insights Survey, 2019

     of respondents likely to purchase
                                                                                  As grocery shopping migrates online, traditional
                                                                                  brick-and-mortar stores will have to respond,
                                                                                  by turning shopping from a
                                                                                  simple transaction into a lifestyle activity.
     groceries online
                                                                                  Traditional food retailers have to adapt to
                                                                                  customer needs by developing Click&Collect
Around 54% of Russian consumers are likely                                        technologies, entering into partnerships with food
to buy groceries online, which represents 12                                      delivery services, installing in-fridge lockers.
p.p. growth over the previous year. Russia
ranks 7th in terms of people’s readiness to buy                                   It may be hard for a customer to orient in online
groceries online. Number of those who are not                                     grocery store without wandering by product
likely to buy groceries online fell by 24 p.p. in                                 shelves, so make navigation through online
2018.                                                                             store easy and understandable, include food
                                                                                  recipes to help choosing from wide product range.
About 4% of Russian consumers indicate that
they already buy groceries exclusively online                                     To reassure customers, make quality a priority
and 12% indicate that they do most of their                                       in transportation-to-home and storage stages.
grocery purchases online.
Who     Where   What    How        Why

   Figure 13. Key reasons not to purchase groceries online, %, 2018

   I prefer to see and touch                         67
   products                                                      However, some key concerns are
                                                                 holding people back from ordering
   Concerns over quality                        57               food online. Russian consumers
                                                                 prefer to see and touch products
                                                                 before buying to ensure their
   Easier to compare prices             25                       quality.
   Food could be damaged                                         In addition, 19% of consumers are
   during delivery                     23                        not likely to order food online
                                                                 because the delivery costs or
   Delivery costs / minimum                                      minimum order price are too high.
   order price is too high            19

Figure 14. Main concerns on purchasing delivery online, in comparison with men/women,
p.p., 2018
                          Food could be                      Easier to compare prices
                          damaged during                                     in-store   + 11 p.p.
         + 13 p.p.

                                    Enjoy discovering new
                      + 9 p.p.                                  assistance + 6 p.p.
                                    products in-store
                                                            from store staff

           + 7 p.p.
                         Concern over quality                Websites are not easy to   + 2 p.p.
                                                             use for grocery shopping

Q. Why would you be unlikely to purchase groceries online?
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Who       Where    What     How       Why

Russian consumers are shopping more
frequently using their PCs and

Figure 15. PC as a shopping channel, %, 2018

                                            +14 p.p.

                                                     40     42


                               19                                                            -5 p.p.

                        10                                                  11              10
                                                                                  5               5
      2      3

       Daily             Weekly             Monthly       A few times     Once a year        Never
                                                             a year
      2017       2018

Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Growing number of Russians are using their                There is a continuing growth trend in using PCs
PCs to make weekly online purchases (up to 9              for online shopping. More than 40% of
p.p.). Still, most Russians (86%) shop on their           consumers made orders via PC a few times a
digital devices once per month. However, there            year in 2017. In 2018, about 40% of respondents
is a clear trend to shifting from monthly                 shopped on their PCs at least once a month and
shopping to weekly shopping, especially                   19% do so on a weekly basis.
noticeable on mobile devices.
                                                          The percentage of consumers who have never
                                                          shopped online or have shopped a few times a
                                                          year dropped to 5%.

Who     Where    What    How      Why

Figure 16. Smartphones as a shopping channel, %, 2018

                                                                                            -7 p.p.

                                             27      27    27    27                        28
                          +9 p.p.

                          7                                                 8
       2      3

        Daily             Weekly             Monthly      A few times    Once a year        Never
                                                             a year

Respondents: 696                                                                           2017        2018
Source: PwC, Global Consumer Insights Survey, 2019

                                                           Following the migration of consumers to
In 2018, the number of respondents who never               mobile devices, retailers should adapt their
use their smartphone for shopping dropped by 7             websites to mobile version, design mobile
p.p. At the same time, there was a significant             applications and luring notifications.
increase in the share of respondents who shop
on their phones at least once a week.                      Pay special attention to speed and security
                                                           of website to lower the cart abandonment
Both PCs and smartphones indicate 9 p.p.                   rate.
increase in weekly shopping: mobile devices
are close to catch up with computers in                    Add convenient payment options as
frequency of online shopping.                              Apple/Google Pay, e-wallets, etc., as
Young Millennials (23-26 years) are the most               customers often do not remember payment
active shoppers via smartphones. More than                 card details.
60% make online orders on their mobiles at
least once a month.
North-West federal district residents shop via
smartphones more frequent than other regions’
citizens: 43% shop using smartphone at least
once a month, and 22% from Saint-Petersburg
shop via mobile phone on a weekly basis.
Who       Where      What        How       Why

     There is a growing interest in smart
     home voice assistants in Russia

     In 2018, the number of respondents who started
     using smart home voice assistant systems for
     online purchases increased by 17 p.p.

     About 40% of Millennials currently use smart
     home voice assistants for online purchases,
     while 13% buy products via these devices at

     least once a month and 11% at least once a

                                                                              of Russian consumers plan to
                                                                              purchase a smart home voice
                               of Russian consumers

       8%                      currently own home
                               voice assistant

     Figure 17. Frequency of online shopping via smart devices, %, 2018
     Smart home voice assistants                                    Young Millennials representatives are leaders in
                                                        -17 p.p.
                                                                    smart home voice assistants ownership as 13%
                                                          89        of them currently own such devices.

                                                                    Moscow citizens are the clear leaders in Russia
                                                                    in the use of smart home voice assistants. More
                          +6 p.p.                                   than 11% claim that they make purchases with
                                                               72   the help of a voice assistant at least once a
                                                                    month, while 8% do so on a weekly basis.
                               8        7
                     6                            5
                                    3         3                     Men are more likely than women to use a voice
       1 2       1         2
                                                                    assistant to make an online purchase. More
                                                                    than 10% of Russian men order products via
      Daily Weekly Monthly A few Once a Never                       smart home voice assistants at least once a
                           times year                               month.
                           a year
       2017   2018
     Q. How often do you buy products (e.g. clothes, books, electronics) using the following
     shopping channels?
     Respondents: 696
     Source: PwC, Global Consumer Insights Survey, 2019
Who      Where   What   How   Why

More than half of smart home voice
assistants owners use devices for
searching products

Figure 18. Activities Russian consumers use smart home voice assistant for, %, 2018

Researching products                                                      53

Streaming music                                                      46

(trivia and games)
Controlling other smart
home devices
Accessing information
(current affairs, weather)

Calendar reminders                                             39

Purchasing products                                        36

Listening to audio books/
(making phone calls)

Q. What are the main activities you use your smart home voice assistant device for?
Source: PwC, Global Consumer Insights Survey, 2019

There is a great potential for
retailers on voice assistant                Smart tech that communicates with you is the future. Global
channels, as more than half                 digital retailers as Amazon and Aliexpress have already
(53%) of consumers use their                launched their own voice assistants; Yandex has developed
smart devices for searching                 Yandex.Station smart speaker with Alisa voice assistant.
36% of smart home voice                     Adapting an online store to voice assistant requires an
assistant     users     make                integrated approach. Customers search products via smart
purchases via their gadgets.                device through related phrases, synonyms in natural language.
                                            Retailers need to optimise traffic-driving pages and product
                                            descriptions with proper content to become visible in voice
                                            search results.
Who    Where       What     How       Why

Price, delivery speed and assortment are
the key drivers of consumer decisions

Figure 19. Ten key elements of a successful online shopping experience, %, 2018


           Fast, reliable


           payment options

           Easy website,
           mobile app

           Good return


                                                                         More than


           Test / try and free
           return options

                                                                         of respondents believe
                                                                         that online retailers
                                                                         should have better
Q. Which of these attributes would significantly
                                                                         prices and faster
improve your shopping experience with online
retailers?                                                               delivery
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Who        Where   What    How    Why

Figure 20. Gender differences on successful online shopping experiences, %, 2018

                             expect mobile site             want to have convenient
                65%          to be easy to use                      payment options          67%

                                        want to have          are happy to
                            44%         test/try and free
                                        return options
                                                                deal with a
                                                             trusted brand

                44%          are interested in
                             loyalty programmes
                                                                     need help from      30%

Q. Which of these attributes would significantly improve your shopping experience with online
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Consumers want to be sure that all of the “must             Assortment is another important element. It
have” elements of a good online shopping                    should be easy for consumers to find the item
experience are present before they even start to            they are looking for and cannot find in-store.
pay attention to loyalty programmes and trust
the brand.
                                                            Online presence and further development of
Most consumers choose retailers who offer                   ecommerce are crucial for retailer's growth.
better prices and fast delivery. These two                  Good price is number-one priority for an online
elements are key in the competition with in-                retailer excluding premium segment. To win
store shopping.                                             competitive advantage online, retailer should
Convenience is key to competing successful                  provide customer with easy-to use mobile
with other online retailers. Consumers will                 shopping facilities and expand delivery
choose easy-to-use websites and mobile apps                 network of pick-up point and lockers to
with convenient payment options                             ensure fast and convenient delivery options.
Who    Where      What      How       Why

Fast delivery is a key determining factor
for online purchases

Figure 21. Important attributes for the delivery experience, %, 2018

            Getting the product
            as quickly as possible

            Availability of
 FREE                                                            72
            free returns

            Knowing the delivery date
            at the point of order

            Being able to track
            the delivery driver

            Option to return items
            to a store

Russian consumers like fast delivery and
believe it is more important than possibility of
free returns. To a greater degree than their

global counterparts, Russian consumers are
willing to pay more for same day delivery or for
specific 1-2 hour time slot for delivery.

Q. Considering the delivery process for online
orders, please rank the following statements in
order of importance.
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019     of respondents think that
                                                       the most significant delivery
                                                       experience is to get the product
                                                       as quickly as possible

Who      Where    What    How      Why

Figure 22. Longest delivery time residents are willing to pay for, %, 2018
A specific 1-2 hour time window of my choosing

Vietnam                                                                                      Australia
15%     Russia                                                                                    3%

In a few hours or, maximum, the same day
Vietnam                                                                                       Ireland
36% Russia                                                                                       14%

  1         3                                                                                      27
Q. For the majority of your online purchases, what is the longest delivery lead time you are willing
to pay a charge for?
Respondents: 21,480
Source: PwC, Global Consumer Insights Survey, 2019

Choosing a specific delivery time is not             Around 63% of the Greatest Generation (52+)
popular globally. However, 12% of Russian            want to be able to reserve products online for
consumers prefer this option. Fast delivery in       collection in-store.
a few hours or on the same day is the most
popular type of delivery in Russia. Overall,         Companies that also have online and brick-
33% of Russian consumers are ready to pay            and-mortar stores in addition to their e-
a charge for express delivery.                       commerce stores may be able to offer in-store
Along with speed, Russians also prefer to            same-day pick-up. Organizations may also
have transparent delivery. Millennials are the       want to consider the option of opening
most concerned about the delivery details.           distribution centers to fasten logistics
They want to have visibility of the product          processes.
throughout the delivery process, including
being able to track the delivery driver (76%),       Retailers need to consider the traceability of
to return non-fitting items (76%) and to             deliveries; besides, it reduces pressure on call
receive updates on the status of returns             center. Among prevalent practices are sending
(65%).                                               interactive SMS notifications on the status of
                                                     the delivery with clickable time and date
                                                     delivery options.

Who     Where      What       How       Why

Pick-up and locker delivery is growing
quickly in Russia

Figure 23. E-commerce logistics market, by delivery channel, %, 2018

                                                                                Self pick-up in store

     Pick-up points/lockers                                             11             Self courier delivery
     Since 2016:                               17
     +392% growth
     +122% CAGR
        Outsource courier delivery                                               Russian Post Service

Source: E-Commerce logistics market, Data Insight, 2018

Consumer preferences for fast delivery and                       In addition, consumers like lockers because
specific delivery times have led to growing                      they are more convenient and there is no need
demand for pick-up points/lockers.                               to wait for the courier. Customers can pick up
                                                                 the order at any convenient time.
According to the latest research of e-Commerce
logistics market by Data Insight, pick-up points                 In response to consumer demand, leading
and lockers account for 17% of total deliveries                  online retailers are opening new pick-up points
and show the highest growth rates. Delivering to                 on their own or in partnership with logistics
lockers or pick-up points is cheaper than using a                companies.
courier, which is one of key reasons for the
popularity of this channel.

Figure 24. Number of pick-up points or lockers opened in 2018

      Lamoda         KupiVIP Yulmart           Aliexpress Mvideo             Wildberries      Citilink Utkonos
        +56          +1120    +500              +1800      +33                 +555           +600       +10

       Jan 18         Mar 18      Apr 18         Jun 18        Jul 18         Sep 18          Nov 18 Dec 18

Source: Retailers reports, 2018

The growth of lockers and pick-
up points is one of the most
significant e-commerce trends of

Egor Pchelintsev
Advertising Director, Wildberries

Pick-up points and lockers delivery is a creditable alternative for
in-store pick-up or distribution center. Customers create demand
for locker delivery as it is close to home, easy-to-use and helps
to avoid time-consuming and unnecessary interaction.

Demand for both digital
and human in-store
Key insights
                                                                                                       p. 32-33
Where are customers more
                                • Russia is one of Top3 countries by the share of consumers who enjoy
likely to buy grocery?
                                  microtrips to convenience stores
How often do customers do
                                • 40% of Russian consumers buy products in nearby grocery stores on a daily
trips to the convenience

 Why                                                                                                   p. 34-35

What attributes will make in-   • Both traditional and technological elements are important for creating a good
store experience successful?      in-store experience for a customer
What do customers expect        • More that 52% of Russian customers believe that quick and easy payments
from digital in-store             and knowledgable associates are key for creating a good in-store experience

Where     Why

Russians tend to make microtrips to
nearby stores, which is driving the shift
towards smaller formats

Figure 25. The share of the population who buy products at nearby stores at least once a day,
%, 2018
                             Middle East        43%

                                                      Active grocery store
                             Russia             40%

                             Vietnam            39%
                             Brazil             36%
                             Poland             35%
                             China              32%
                             Indonesia          32%
                             Hong Kong          28%
                             Hungary            28%
                             Thailand           28%
                             Spain              28%
                             Ireland            23%
                             Japan              23%
                             Switzerland        23%

                             South Africa       21%
                             Netherlands        20%
                             France             20%
                             UK                 18%                          of respondents buy products at
                             Philippines        18%                          nearby grocery stores every day
                             Belgium            16%
                             USA                16%
                             Australia          15%
                             Singapore          13%
                             Canada             10%

Q. How often do you make microtrips (less than five minutes) to grocery stores?
Respondents: 21,480
Source: PwC, Global Consumer Insights Survey, 2019

Where    Why

Figure 26. Russian food retailers LfL traffic, %, 2018

 Da!                                                              9,5

 Perekrestok                                                6,2

 Lenta Super                                             1,6

 Pyaterochka                                         0,4

 O’KEY                                    -4,8

 Karusel                                     -3,1

 Lenta Hyper                                         0,4

Source: Retailers reports, PwC analysis

Russia is one of the top three countries in terms   and planning about 170 new openings of this
of the share of consumers who take daily            format.
microtrips to nearby grocery stores.                Magnit has decided against the further
More than half of consumers in the Siberian         development of its network of hypermarkets and
Federal District and Southern and North             has reformatted some large-area stores into
Caucasian Federal Districts take regular            large supermarkets.
microtrips to nearby stores.
                                                    Lenta plans to increase the number of
The most active generation is Core Millennials      supermarkets and expand their retail space up
(27-31), 4% of whom take such microtrips more       to eight times by 2020. Supermarkets will take
than once per day.                                  15-20% of total Lenta’s commercial space.
These consumer preferences are driving the
shifts towards smaller formats in Russia. Most      Most hypermarkets are now experiencing
retailers report positive traffic growth at these   negative LfL traffic. Retailers that traditionally
formats.                                            relied on hypermarket format are now tending
O’KEY is developing a new compact city              to shift their focus to smaller formats in
hypermarket format (3,000-7,000 sq m). They         response to changing consumer behavior.
find such stores up to 10% more effective than      Russian retailers experiment with new smaller
their traditional hypermarkets. In addition, they   formats as mini- and micro- markets, vending
are actively developing the DA! discount chain      machines, kiosks.                                  33
Where     Why

     Easy payment, customisation and
     knowledgeable associates are key for
     creating a good in-store experience

     Figure 27. Attributes that improve the in-store shopping experience for Russian
     consumers, %, 2018
     Digital experience                                   Traditional experience

     Quick and easy
                                                           Sales associates
     payment methods
                                                 55        with a deep knowledge                 52
     (including mobile,
                                                           of the product range
     contactless payment)

     Ability to quickly                                    Ability to quickly
     and conveniently                           48         and conveniently                      48
     navigate the store                                    navigate the store

     A fun experience                                      A fun experience
     via the store design                  37              via the store design             37
     or atmosphere                                         or atmosphere

     In-store Wi-Fi
                                          35               Child-friendly area         22
     with fast, simple login

     Personalized offers                                   Availability of
     sent to mobile device                33               food & beverage             22
     when in-store                                         services in-store

     Technology to assist
                                                           Exclusive services
     the shopping experience
                                      25                   i.e personal shoppers       20
     (mobile checkout,
                                                           and stylists
     self-service scanners)

     Virtual experience
     of products and services        21                    Inviting lounge/rest area   20
     through AR technology

      Q. Which of these attributes would significantly improve your in-store shopping experience?
     Respondents: 696
     Source: PwC, Global Consumer Insights Survey, 2019

          In digital era, retailers have to meet technological demands of customers, but quality service
          from assistants cannot be overlooked. Consumers interact with your brands through your
          frontline employees, who embody your brand and the culture that shapes it.

          In-store retail is no longer about simply selling products, it is about experience and
          atmosphere. Retailers should look onto creating a retail-tainment atmosphere by merging
          experiences with shopping. This could be achieved by adding cafeterias, music experiences
          or complimentary services inside the store as well as blending digital and physical
34        experience to satisfy the needs of a modern customer.
Where    Why

It’s good to have sales associates
with a deep knowledge of the                         Figure 28. Non-cash payments for goods
product range                                        and services, T RUB, 2016-2018

                          I want a fun experience
                          via the store design or

                               I like personalized                                                        19,5
                               offers sent to my                                   14,6
                    36%        mobile device when            11,2

              25%         I want the store to
                                                            2016                   2017                   2018
                          have child-friendly
23%                       area
                                                     Source: Central Bank of Russia statistics, 2018

I want to have a virtual
experience of products
and services through AR                              Figure 29. Mobile payment use when
technology                                           shopping in-store, %, 2017-2018

               I want to customise
                  products in-store
                                                                                                             +18 p.p.
  I want payments to
   be quick and easy          57%                                27

    I’d like the use of                                        2017                        2018
 technology to assist        26%
          the shopping                               Q. Which of the following payment activities have
            experience                               you undertaken using your mobile, smartphone
                                                     or wearable device when shopping in-store?
                  It’s good to have                  Respondents: 696
                food and beverage                    Source: PwC, Global Consumer Insights Survey, 2019
                  services in-store
Growing influence of
Key insights
                                                                                                            p. 38-39
 How                                • Global trend for sustainability highly influences Russian consumers as 83% of
                                      Russian consumers claim to make purchases in a sustainable way
How do consumers purchase           • Most common eco-shopping practices of Russian customers are to avoid the
in a sustainable way?                 use of plastic where possible (32%) and to protect the environment by
How do they learn about               choosing sustainable products (31%)
sustainable products?               • The majority of respondents use online channels to gain information about
                                      sustainable product
                                    • One of the most successful case of business model around sustainability is
                                                                                                           p. 40-41
                                    • Majority of Russian consumers are concerned about food sustainability as
                                      86% of consumers are ready to pay extra amount for sustainable food
Who is interested in food
                                    • The most pro-active generation is Millennials: 20% are willing to pay extra for
What for are consumers willing
                                      food sustainability
to pay a premium when
                                    • Locally produced products attract customers the most (68%); more than 40%
purchasing food items?
                                      of Russian consumers are ready to pay premium for sustainable packaging,
                                      organic and eco-friendly food products
                                                                                                            p. 42-43
Who is interested in non-food       • 79% of Russian consumers are ready to pay premium for sustainable non-food
sustainability?                       products
What for are consumers willing      • The main attractive practices of non-food sustainability is connected with
to pay a premium when                 methods of production: over 77% of Russian customers will pay premium for
purchasing non-food items?            sustainable or ethical production of goods
How to attract pro-sustainability   • Customers tend to pay premium for production of brands well-known for
customers?                            sustainable practices (42%) and retailers who make donations to charity (35%)

How       Why

 There is growing interest for sustainable
 products in Russia

Figure 30. Most common practices of sustainable purchasing in Russia, %, 2018

I avoid the use of plastic
where possible
I choose sustainable product
 to help protect the environment
I choose products with a traceable
and transparent origin
I look for products with environmentally
friendly packaging
I buy brands that promote
sustainable practices

Q. Please indicate which statements best reflect how you purchase in a sustainable way.
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

Russian residents are increasingly concerned         Russians tend to trust eco-bloggers and
with the irresponsible use of plastic and other      influentals up to 3% more often than friends
unsustainable packaging.                             and relatives on sustainability agenda

Around 32% of Russian consumers actively
avoid plastic where possible and 29% either
look for eco-friendly packaging or try to find

less-packaged products. In addition, Russians
are more likely to care about the traceable
origin of products than their global counterparts
                                                           of respondents care about
There is a growing interest in sustainable                 sustainability
products in Russia. Only 3% of consumers buy
eco-friendly products impulsively, whereas more
than 40% do some web research about eco-
friendly products and stores.

Most consumers use the Internet to find
information about sustainable products. Around
40% directly search for specific products, read
and watch reviews, and join healthy-lifestyle

How        Why

   Figure 31. Sources respondents turn to for information about sustainable products, %,

  Search the web for specific products,
read reviews, buy in specialised stores
   Watch reviews on online platforms,
   read comments in healthy-lifestyle                                        37
                        Look for a shelf
              with eco-products in-store

         Don’t search for eco-products
          on purpose, if I see it - I buy

                       Follow advice
    from eco-bloggers and influencers

                Trust recommendations
              from friends and relatives

                   I see that the product
               is eco-friendly and buy it

   Source: Ecological Union and Ecobureau GREENS – How do customers choose eco-products? 2018 (Moscow, Saint Petersburg)

              Sustainability needs to become a core component of a strategy. Sustainable
              practices are best to affect a whole value chain from producing and manufacturing, to
              logistics and beyond. With the use of technologies organizations can upgrade majority
              of business processes to sustainable network: AI can help changing product
              development, blockchain can provide traceability, robotics and 3D modelling can
              personalize unique models on-demand.

              Businesses managing sustainability will not only build consumer loyalty but can also
              command a price premium as consumers will pay a premium for a good experience.

How        Why

Making sustainable products a
cornerstone of a successful business

Figure 32. VkusVill sales profit, M RUB, 2013-2017

                                                                                    1 199
1 200

1 000                                                             +74%

     800                                                            713



                 2013          2014               2015             2016              2017

Source: Spark-Interfax, 2018

VkusVill grew out of Izbenka to fill a niche:     Classical formats such as supermarkets and
Russia had few convenience stores selling fresh   minimarkets do not work in such areas, because
eco-friendly products. The company became         it is not cost effective. The concept of
profitable after two years and has performed      micromarkets helps reduce costs & expenses
very well (CAGR of 74%) since 2015. VkusVill’s    and increase operational efficiency. VkusVill
key to success was picking the right time to      Micro has a smaller product range depending on
offer Russians fresh and farmer-quality food,     the location. The company is planning to open
combined with a distinctively progressive         micromarkets and vending machines not only in
approach to business.                             traditional urban locations, but also in offices,
                                                  business centers and even metro stations.
In March 2018, VkusVill began working with
online grocery services and started to deliver    Coffee House filled a significant niche in this
their products via SaveTime and Instamart.        market by placing coffee machines at Moscow
Moreover, VkusVill decided to experiment with     Central Circle (MCC) metro stations. By the end
the micromarket format. This initiative covers    of 2018, Vkusvill and Coffee House plan to
customers who live and work in remote or          install their vending machines at every MCC
suburban areas.                                   station.

There are top two brands that respondents call
the most recognisable on the market for their
sustainable   products:   4fresh   (20%    of
respondents) and VkusVill (also 20% of

While 4fresh is a pure online retailer, VkusVill is
the leading eco-friendly in-store.
 It promotes sustainable practices as:
• collection and recycling of batteries (10
    tonnes per month);
• separated waste collection from customers
    (800 kg of waste);
• paid plastic bags (57,000 customers bought
    reusable bags, 15,000 stopped buying bags);
• installation of machines for PET bottles and
    aluminium cans.
Source: VkusVill: Ecology summary, 2018

 We are growing although our main idea has not yet been fully realised by us
 or our competitors. We want to give customers the opportunity to buy fresh
 products near their home, and there are many regions where this
 opportunity is not yet available.

 Business needs to be started in areas where the situation is deplorable. So
 we originally started with dairy products. This is why people are waiting for
 us in the regions. Many people in smaller towns do not have a single Dixy or
 Pyaterochka store with fresh products near their home.”

 Andrey Krivenko, owner and
 CEO of VkusVill

How       Why

Consumers are ready to pay extra for
organic, locally produced food with eco-
friendly packaging

Figure 33. Respondents willing to pay a premium for sustainability when purchasing
food items: detailed, %, 2018
Locally produced                                            68
Sustainable packaging                               46
Organic                                             46
Eco-friendly                                       43
Sustainably produced                             38
Q. Which of the following are you willing to pay a premium for when purchasing food items?
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019

                                                         Russian consumers are most likely to pay extra
86% of Russian consumers                                 for locally-produced food, organic food and eco-
                                                         friendly packaging. Around 68% of Russians are
are ready to pay extra for                               willing to pay extra for locally grown products.
sustainable food products                                This is partly a consequence of Russia’s
                                                         continued urbanisation. Around 33% of Russian
                                                         consumers will pay a premium if retailers have a
                                                         strong reputation for sustainable practices.
Figure 34. Interest in sustainability among
generations (food), %, 2018
                                                         Young Millennials care about food sustainability
Young Millennials                                        the most: they are interested in sustainably
                                        20               packaged products (60%) and organic food
                                                         (57%).Young and Mature Millennials (44% and
Mature Millennials                                       41%) are more likely to trust brands well known
(32-36)                                                  for their sustainable practices.
Generation Z
                                    17                   Generation Z, more than others, is inspired
                                                         (38%) by retailers and brands that make
Core Millennials                                         donations to charity. Generation X and the
                                    16                   Greatest Generation are the least interested in
                                                         food sustainability.
Generation X
(37-51)                                                  Russian customers are willing to invest in
The Greatest                                             sustainable retailers. Transform sustainability
Generation                        14             +2-3%   efforts into a part of a brand identity. To meet
(52+)                                                    customer needs, retailers have to support
                                                         sustainable practices as switching to
Q. Which of the following are you willing to pay
                                                         sustainable packaging, developing
a premium for when purchasing food items?
                                                         environmental or charitable initiatives.
Respondents: 696
Source: PwC, Global Consumer Insights Survey, 2019
                                                         Many people want to engage with businesses
42                                                       that align themselves with social values, such
                                                         as sustainability and local production.
How       Why

Russians tend to trust non-food brands
with strong reputations for sustainable

 Figure 35. Consumers willing to pay a premium for sustainability when purchasing non-
 food items: detailed, %, 2018
 Sustainably produced                                                             43
 Brands well known for their sustainable practices                                42
 Eco-friendly offering                                                       36
 Retailer/brand makes donation to charity                                   35
 Ethically produced                                                         34
 Q. Which of the following are you willing to pay a premium for when purchasing non-food items?
 Respondents: 696
 Source: PwC, Global Consumer Insights Survey, 2019

Russians are more willing to pay extra for
sustainability when it comes to food products.
                                                         79% of Russian consumers are
However, for non-food items, Russians tend to            ready to pay extra for sustainable
trust brands well-known for sustainable                  non-food products
practices (42%) more than for food items
                                                        Figure 36. Interest in sustainability among
Likewise, Russians are interested in whether            generations (non-food), %, 2018
their non-food retailers make a donations to
                                                        Generation Z
charity (35% against 28% for food products).                                                   19
Russian consumers tend to base their opinions
on the retailer’s mission and values when               Mature Millennials
buying non-food items, as it’s more difficult for       (32-36)
them to track the sustainability of non-food
goods.                                                  Young Millennials
Generation Z is the one of most attentive               (23-26)
generations to sustainability issues for non-food
                                                        Core Millennials
products. Most of all, they deeply trust brand                                                16
manufacturers who are well-known for their
sustainable practices (47%).
                                                        Generation X
Consumers trust brands with third-
party certifications and eco-labeled                    The Greatest
products. They can check                                Generation                       11                  +3-8%
sustainability of a product using brand                 (52+)
new Russian mobile app EcoGuide.
                                                       Q. Which of the following are you willing to pay a
                                                       premium for when purchasing non-food items?
                                                        Source: PwC, Global Consumer Insights Survey, 2019

Strong shift to digital
Key insights: advertising

 Where                                                                                                  p. 46-47
What types of advertisements     • Russian consumers find both traditional and innovative advertising influential:
have an impact on the              39% indicate the impact of TV, whereas 27% are attracted by interactive social
consumers?                         media advertisement
                                                                                                        p. 48
                                 • Among personalized adverts Russian consumers mostly like interactive social
What types of personalized         media ads (27%)
advertisement do Russian         • 26% of respondents are influenced by personalized advertisements they get
consumers find the most            via e-mail
influential?                     • 19% of respondents appreciate personalized direct ads of their favorite brands
                                   or products
 How                                                                                                    p. 49
                                 • Personalization leads retailers to increased conversion, average check and
How does personalization
influence retailer's operating
                                 • By 2020, 15% increase of digital business profits will be caused by smart
                                   personalization engines

Key insights: social media

 Who                                                                                                       p. 51
                                     •   Russian consumers are "silent viewers" - they read reviews more often
How do customers use social
                                         than share comments
media channels?
                                     •   More than 30% of Russian customers were influenced to buy a product
How does social media change
                                         after reading positive reviews, finding shared offers/promotions, seeking
consumer behavior?
                                         for inspiration
                                                                                                           p. 50
                                     •   94% of Russian customers use social media
How many consumers use social        •   Reviews have a great impact on customers: 50% of Young Millennials
media?                                   aged 23-26 have been influenced to buy a product after reading positive
Who is easy-to-influence in social       reviews on social media
media?                               •   Men write reviews, but reach to them less often, while women rarely
                                         write reviews but more influenced by them.
 What                                                                                                    p. 52-53
In which categories of goods
                                     •   52% of Russian customers are sure that social media influenced their
social media influence purchase
                                         purchase decisions in clothing and footwear category
decisions the most?
                                     •   Matures feel the impact of social media on purchase decisions in
Which categories are better
                                         majority of categories: travel, food, recipes and dining-out, technology
perceived by different generations
                                         and beauty and cosmetics
in social media?

                                                                                                        p. 54-55

What online entertainment            •   80% of Russian consumers are active users of online entertainment. Most
services do Russian users prefer?        popular services are movies and music streaming platforms
How often customers use              •   The frequency of entertaining platforms usage in high in Russia: more
entertainment platforms?                 than 32% of consumers use them on a daily basis

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