Russian e-commerce giant Ozon woos Chinese cross-border sellers to fill gap left by exodus of Western brands
- Western brands that have exited Russia include H&M, Ikea, Apple and Samsung
- Ozon sees a ‘window of opportunity’ for Chinese merchants in Russia as Western brands retreat, and as e-commerce infrastructure improves
Ozon, Russia’s Amazon-like e-commerce giant, is wooing Chinese cross-border sellers, as local consumers turn to Chinese products and online shopping after the country's invasion of Ukraine led to an exodus of Western brands.
Russia’s trade activities have come off a bottom hit in February and March at the outset of the invasion, and demand for Chinese products has soared since and now accounts for most of the rebound in imported goods, Simon Huang, head of Ozon’s China business, said in an interview with the South China Morning Post on Thursday.
“Chinese cross-border sellers have been looking for new, untapped opportunities, and Russia is one of the few blue ocean markets,” Huang said. “This is a golden opportunity window for Chinese merchants.”
Russia, which is still bogged down in Ukraine, has had sanctions imposed on it by Western governments and has been boycotted by many international brands following the invasion of its neighbour.
Russia has been forging closer business ties with China this year. According to Chinese customs data, the country’s bilateral trade with Russia grew 31 per cent in the first eight months of 2022. In July, Chinese exports to Russia were back to near pre-invasion levels, with US$6.7 billion of Chinese goods bought by Russia.