Welcome!

News Feed Item

Ulmart's Hybrid Approach Continues to Disrupt Russian E-commerce: Sales Grow by 30%

MOSCOW, August 19, 2014 /PRNewswire/ --

Ulmart's stunning growth continues unabated as sales for the first six months of 2014 were up 31% in a year-on-year comparison.  Sequential quarterly growth increased by 47%.

Ulmart's half year results put the company at just below GMV of $610 million (VAT included).  The company is forecasting GMV of $1.6 billion for the whole year which would put year-end sales at 33% higher than 2013.

To view the Multimedia News Release, please click: http://www.multivu.com/players/English/7276256-ulmart-sales-grow-ecommerce

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

Ulmart's hybrid model which allows customer access to company's fulfillments centers (currently there are 29 in the European part of Russia) continues to be a disruptive element in e-retail.  Due to the particularities of the Russian infrastructure, reliance on last-mile delivery, the obsession of so many other world e-commerce leaders, is simply not a profit-creating option in Russia.

"Russia is a different market.  Why should force consumers to request home delivery if culturally it is not really a sought after service," commented Brian Kean, Ulmart's Director for Communications and Investor Relations.

Ulmart's "web of fulfillment" has three main elements for receipt of the purchased item:  last mile delivery (roughly 15%); pre-last mile or what the company refers to as pick-up points (currently there are 412 situated throughout the European part of Russia and around 22% is picked up here) and the company's 29 urban-based fulfillment centers (63% of sales are picked up at FC's).  

Expansion into faster-growing categories like auto parts, children's clothes and toys and home design items has also had a positive impact on Ulmart's growth as the formerly-and low-margined-leading category of consumer electronics dropped by 5% to 46% of the overall sales.  The electronic catalogue has increased from 55,000 SKU to 75,000.

Another interesting development is that St. Petersburg and North-West Russia no longer drives all sales for Ulmart.  The company's 2013 expansion into the regions has paid off with growth of 76% in a year-on-year comparison.  In the first half of this year, regional sales currently make up 42% of company sales; St. Petersburg and North-West Russia 36% (up 6%) and Moscow makes up 21% (up 12%).  

"Success in e-commerce is not solely about ground-shaking technological breakthroughs.  It is really about logistics:  getting the right product at the right price to the right customer when and where he wants it.  This is what Ulmart excels at," believes Ulmart's Chief Marketing Officer, Alexandra Savina.


Video: 
     http://www.multivu.com/players/English/7276256-ulmart-sales-grow-ecommerce

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
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
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.