Yandex.Market online marketplace, a joint venture between internet major Yandex and Russia's largest bank Sberbank, closed a strategic partnership deal with Chinese e-commerce major JD.com.
As of June, Yandex.Market will be selling JD.com goods in Russia through its e-commerce platform, Interfax reported on May 29, citing Yandex.Market’s Head of International Development Alex Vasilyev.
"Yandex.Market, an e-commerce venture between Yandex and Sberbank, is developing three key lines of business – a traditional comparison shopping engine, online marketplace Beru where shoppers can make purchases from multiple categories on one platform and Bringley, a cross-border e-commerce platform," BCS Global Markets said in a research note.
BCS believes the deal with JD.com will strengthen Yandex.Market's cross-border e-commerce exposure.
Currently, cross-border e-commerce is dominated by AliExpress. In China, JD.com is a major competitor to Alibaba's Tmall. AliExpress is is likely to become a joint venture between Alibaba, MegaFon, Mail.ru and Russian Direct Investment Fund in the near future, which will be a major e-commerce conglomeration to compete with Yandex-Sberbank.
China accounts for about 90% of total cross-border shipments to Russia, and about half of Russia's cross-border e-commerce turnover. In 2018, online imports increased by 29 percent year-on-year to 348 billion rubles ($5.4 billion).
In the meantime Russia's largest online retailer Wildberries accused Yandex.Market of redirecting traffic to the marketplace on the Yandex search engine. Wildberries claimed on May 29 that Yandex.Market appeared in second or third place in the search results for "Wildberries online shop" and similar inquiries.
This article first appeared in bne IntelliNews.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
