Hermes Fulfilment cooperates with Finnish logistics provider Itella. The aim of the partnership is to make it easier for West European retailers to enter the Russian market by offering them full service e-commerce solutions.
According to an industry report carried out by Russian information company East-West Digital News, in 2013 online retail trading in Russia rose by 25% in comparison with the previous year. It is estimated that turnover could increase from $16.5 billion in 2013 to between $50 and $70 billion in 2020. Hardly any other country is growing at this rate. Currently online sales account for roughly two percent of total retail sales. Some 30 million Russians over the age of 18 shop online. That is about a quarter of the population. “The potential of this market has not yet been fully exploited,” says Dieter Urbanke, managing director of Hermes Fulfilment. Russians mostly shop online for household appliances, consumer electronics, textiles, footwear, computers and IT accessories.
Hermes Fulfilment is cooperating with Itella in order to ensure that West European retailers who are looking to expand their online businesses into Russia receive the same high standard of service along the entire supply chain that they are accustomed to. Headquartered in Helsinki, the logistics provider specializes in warehousing and distribution and has a long-established presence on the Russian market. “In Itella we have found a reliable partner who is familiar with the distinctive features of the Russian market and knows how to do business there. The spectrum of services offered by the two companies complement each other perfectly,” adds Dieter Urbanke. Within the context of this cooperation Hermes Fulfilment will be drawing on its extensive experience in the international e-commerce sector. In Germany it will be handling services such as web store design, payment and accounts receivable management.
Nikolai Voinov, managing director of Itella Russia, draws attention to the challenges involved in any attempt to enter the Russian market. According to Voinov, these can include the sheer size of the country and its complex legislation. “Our aim is to support European companies in their endeavours to strengthen their position in the Russian market. “In partnership with Hermes Fulfilment we offer these companies a full range of product offerings that includes everything from all the necessary fulfilment services to last-mile logistics,” explains Nikolai Voinov.