Otto Group Russia Intends to Expand Its Market Leadership in E-Commerce - Information portal

Otto Group Russia Intends to Expand Its Market Leadership in E-Commerce

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21.08.2013 Количество просмотров 891 views
Otto GroupIn just seven years, the Otto Group has developed from being a newcomer to the market leader in the Russian distance retail. To maintain this strong position the worldwide-operating trade and services group plans to invest in addition 50 million euros in Russia. The focus is mainly in the development of logistics services. About 700 new jobs will thus be created.

Under the umbrella of Otto Group Russia, the Otto Group has been active since 2006 in the Russian market. With about a dozen brands, the group generates here now approximately 550 million euros. The most successful Bonprix brand achieves more than 200 million euros in turnovers. Other strong brands are OTTO, Quelle, Witt, NaDom, Lascana, myToys.ru and Meggy Mall. In order to send the ordered goods as soon as possible to customers, Otto Group Russia operates a logistics center in Tver.

"The Russian operations of the Otto Group can certainly be used as an example of a successful expansion abroad," says Dr. Michael Otto, entrepreneur and chairman of the Otto Group. "The group has grown quickly and created more than 2,000 jobs. We are convinced that the Russian distance retail bears still a lot of potential - especially in e-commerce which is already responsible for more than 50 per cent of total turnover. Russia is one of the most exciting markets in the online retail world."

The outlook for the Russian distance trade, which is composed of the catalogue business and e-commerce, are outstanding. While in Germany the share of distance sales is about 8 per cent of total retail, in Russia this figure is still below three per cent. According to forecasts, especially the online shopping in Russia will develop strongly. The e-commerce sales will more than double in the next five years from today's 8.2 billion euros: Russian customers will spend approximately 19 billion euros by shopping on the net in 2017. Also the catalogue trade is growing parallel to the overall growth of the retail segment.

In order to benefit from the high dynamics of the Russian distance trade, the Otto Group is planning to further invest 50 million euros. A large part of this sum flows in the expansion of logistics infrastructure. Especially the warehouse in Tver will be greatly expanded. In order to grow strongly in the future, the capacity of the logistics center in Tver will be doubled. By that about 700 new jobs will be created.
Source:  Otto Group


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