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Central Asia and Caucasus B2C E-Commerce Market 2015

Central Asia and Caucasus B2C E-Commerce Market 2015

yStats.com reports: B2C E-Commerce in Central Asia and Caucasus has an untapped potential

A new report by the secondary market research specialist yStats.com, “Central Asia and Caucasus B2C E-Commerce Market 2015,” reveals that the potential for online retail development for countries in this region remains untapped. As B2C E-Commerce is in early stages of development in Central Asia and Caucasus, foreign E-Commerce platforms attract more traffic from these countries than local retailers and marketplaces. However, as local offerings and infrastructure improve, B2C E-Commerce sales in Central Asia and Caucasus are expected to grow rapidly.

B2C E-Commerce is only starting to evolve in the Central Asia and Caucasus region. Internet penetration is below 50% in the majority of its countries, with the exception of Azerbaijan and Kazakhstan, and access to financial services reaches over half of the population in Kazakhstan only. However, as the report by yStats.com shows, as infrastructure improves and Internet penetration increases, B2C E-Commerce in the countries of Central Asia and Caucasus could grow as well.

Kazakhstan is a regional leader in B2C E-Commerce, though there, too, online retail has much room for growth. B2C E-Commerce accounted for below 2% of total retail sales in Kazakhstan last year, but online retail is predicted to maintain high double-digit growth rates. Online shoppers in Kazakhstan are motivated to engage in E-Commerce as a result of wide product selection, convenience and low prices, as yStats.com’s report shows. Cross-border B2C E-Commerce is a significant trend, as foreign online shops account for the largest share of online sales. Of the top five online retailers by sales in 2014, three were based in foreign countries. However, as local offering is improving, online retailers from Kazakhstan, such as Arena S and Chocofamily Holding, increase their share.

Another country with rapid B2C E-Commerce growth is Azerbaijan, according to yStats.com’s findings. In the first seven months of 2015, online retail sales in Azerbaijan already exceeded the total number for the full year 2014. Still, B2C E-Commerce’s share of total retail sales was less than 1% last year. The driving force behind both Internet usage and online shopping growth is the population under 25 years old, accounting for close to half of all Internet users. Of them, a small double digit share shopped online in early 2015, preferring international platforms such as eBay.

The details in the yStats.com report reflect the untapped potential for B2C E-Commerce in the rest of the region. In countries such as Georgia and Armenia Internet penetration has significantly improved, getting closer to the 50% mark. In Uzbekistan, the most populous country in the region, Internet penetration is driven by mobile technology. Across these markets, international players such as Aliexpress.com, eBay.com, and Amazon.com beat local shopping websites in popularity. However, local players have gathered a significant audience on social networks, especially Facebook. Overall, as Internet penetration and infrastructure for delivery and payment improves, B2C E-Commerce in these countries is expected to grow further.


1. Management Summary
2. Regional
Internet Penetration, in % of Individuals, by Country, 2014
Share of Individuals Holding an Account at a Financial Institution, in % of Individuals, by Country, April 2015
Logistics Performance Indicators, by Country, 2014
GDP per Capita, in USD, by Country, 2011-2014
Population, in millions, by Country, 2014
3. Central Asia
3.1. Kazakhstan
3.1.1. Overview
B2C E-Commerce Overview and International Comparisons, November 2015
3.1.2. Trends
Overview of B2C E-Commerce Trends, November 2015
Breakdown of B2C E-Commerce Payments with Bank Cards, by Kazakh Online Shops and Foreign Online Shops, in %, 2012 & 2014
Perceived Barriers and Advantages of E-Commerce, in % of Internet Users, 2014
3.1.3. Sales & Shares
B2C E-Commerce Sales, in USD million, 2012, 2013 & 2017f
B2C E-Commerce Share of Total Retail Sales, in %, 2014
3.1.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2010 - 2014
Breakdown of Internet Users, by Age Group and Gender, in %, July 2015
Breakdown of Main Purposes of Internet Usage, incl. “Buying and Selling Goods and Services”, in % of Internet Users, 2013 & 2014
Breakdown of Online Shoppers, by Age Group, in %, 2014
3.1.5. Products
Product Categories Purchased Online, in % of Online Shoppers, 2013 & 2014
Average Check in B2C E-Commerce, in USD, by Product Category, 2014
3.1.6. Payment
Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, 2013 & 2014
Number and Value of Online Payment Transactions with Bank Cards, in thousands and in KZT million, and Share of Total Bank Card Payments Number and Value, in %, September 2014 - July 2015
Overview of Top 10 Online Payment Processing Systems, Ranked by Revenue, September 2015
3.1.7. Delivery
Share of B2C E-Commerce Deliveries of Total Small Parcel Deliveries Made by Post, in % and in millions, 2014
3.1.8. Players
Overview of E-Commerce Players, November 2015
Overview of Top 10 B2C E-Commerce Companies, Ranked by Revenue, 2014
3.2. Uzbekistan
3.2.1. Overview
B2C E-Commerce Overview and International Comparisons, November 2015
3.2.2. Trends
Breakdown of Internet Usage Frequency, in % of Internet Users, by Device, 2015e
3.2.3. Users & Shoppers
Internet Penetration, in % of Individuals, 2010 - 2014
Number of Internet Subscribers, by Fixed and Mobile, in thousands, 2013 & 2014
Number of Internet Users, in millions, January 2015 & September 2015
3.2.4. Players
Overview of Top 10 E-Commerce Websites, by Website Rank, October 2015
Overview of Selected B2C E-Commerce Websites, Accepting Payment Online, incl. Website Rank and Number of Website Visits, September 2015
4. Caucasus
4.1. Azerbaijan
4.1.1. Overview
B2C E-Commerce Overview and International Comparisons, November 2015
4.1.2. Trends
Breakdown of Households with Internet Access by Type of Internet Connection, in %, 2010 – 2014
4.1.3. Sales & Shares
B2C E-Commerce Sales, in AZN million, 2013, 2014 & H1 2015
B2C E-Commerce Share of Total Retail Sales, in %, H1 2015
4.1.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2010 - 2014
Breakdown of Internet Users, by Age Group, in %, 2014
Breakdown of Main Purposes of Internet Usage, incl. “Ordering or Selling Goods and Services”, in % of Internet Users, 2014
Online Shopper Penetration, in % of University Students, January 2015
4.1.5. Players
E-Commerce Websites Most Purchased from, in % of University Students Shopping Online, January 2015
Overview of Popular Online Shops, incl. Category and Website Traffic Data, November 2015
4.2. Georgia
4.2.1. Overview
B2C E-Commerce Overview and International Comparisons, November 2015
4.2.2. Trends
Breakdown of Devices Used to Access the Internet, in % of Internet Users, 2014
4.2.3. Sales & Shares
Breakdown of Online Spending, in % of Online Shoppers, 2014
4.2.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2010 - 2014
Reasons for Shopping Online, in % of Online Shoppers, 2014
4.2.5. Payment
Breakdown of Preferred Payment Methods, in % of Online Shoppers, 2014
Number and Value of Online Payment Transactions with Bank Cards, in millions and GEL thousand, 2010 - 2014 & H1 2015
4.2.6. Delivery
Factors Influencing the Choice of the B2C E-Commerce Website, incl. Delivery, in % of Online Shoppers, 2014
4.2.7. Players
Overview of Top 9 B2C E-Commerce Companies, Ranked by the Number of Facebook Fans, November 2015, and Website Traffic Data, September 2015
4.3. Armenia
4.3.1. Overview
B2C E-Commerce Overview and International Comparisons, November 2015
4.3.2. Trends
Breakdown of Households by Computer Types Owned, in %, January 2014
Smartphone Penetration by Age Group, in % of Individuals, 2015e
4.3.3. Sales & Shares
Revenues of Companies Specialized in Internet Applications and E-Commerce, in USD million, 2010 & 2014
4.3.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2010 - 2014
Online Services Used, incl. Online Shopping, in % of Internet Users, January 2014
4.3.5. Players
Overview of Top 8 B2C E-Commerce Websites, Ranked by the Number of Facebook Fans, November 2015, and Website Traffic Data, October 2015

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