Welcome!

News Feed Item

Ulmart: Russia's Online Retailer Chairman says 'Amazon has no Chance' in Russia

MOSCOW, March 7, 2014 /PRNewswire/ --

In an interview last week on the Bloomberg morning news program "Market Makers," Ulmart's Chairman of the Board, Dmitry Kostygin calmly stated that "Amazon does not have a chance in Russia."   Ulmart is Russia's number one internet retailer and finished 2013 with sales of over $1.2 billion.

     (Logo: http://photos.prnewswire.com/prnh/20140203/667275 )

     (Photo: http://photos.prnewswire.com/prnh/20140307/673987 )

Perhaps this may come to many as a surprise given Amazon's resources, size and aggressive business practices, the Ulmart model, which Kostygin calls the "fourth generation" of retail, is one that is more appropriately geared for the particularities of the Russian market.  

The "fourth generation" model, as described by both Kostygin and Sergei Fedorinov, Ulmart's co-founder and CEO, to some in the West almost seems counter-intuitive.  Large fulfillment centers located in city centers, just outside city centers and in suburban areas are fronted by small "carry-out areas" at which Russian consumers can purchase the chosen product online.  

The shopper in these carry-out areas can use Ulmart's computer terminal to peruse the hundreds of thousands of goods and then send the product into his "shopping cart."  Next, he purchases the item either via credit card or in many cases by paying cash at the Ulmart cash window located in the carry-out area.

As explained by Kostygin, "the most popular items are located where the people are and so purchase and receipt of product can take as little as 10 minutes."  Amazon's reliance on third-party delivery companies like USPS, FedEx and others only permits them to make delivery in a couple of days.  By permitting customers to purchase what they want where they want and when they want, Ulmart has in fact managed to tame the logistics beast that has so often humbled larger multi-nationals in Russia.

In December, Amazon and others were affected when FedEx and DHL mentioned they were halting shipments to Russia.  In addition, Germany's leading long-distance retailer, Otto, has also found Russia's logistical hurdles at times to be nearly insurmountable.

Fortifying Ulmart's "web of fulfillment centers" is a fleet of 190 trucks that can service customers over the "last mile". This aspect of the Ulmart approach has been mastered by the company and they are now capable, in cities like Moscow - known for terrible traffic problems - of making deliveries to the home or office within 2 hours. This service is called "delivery 2.0."

http://www.bloomberg.com/video/is-ulmart-the-amazon-of-russia-j1hKBd4QQKq3vpuas8VrGg.html

Brian Kean - +7-812-336-3777 extension 4575

SOURCE Ulmart

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.