Technology

Russia's Ozon To Open China Office To Boost Cross-Border Sales

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Russian online retailer Ozon Holdings said on Monday it was opening an office in Shenzhen in China to boost cross-border sales to Russian shoppers on its platform.

Russian companies have been rapidly boosting business ties with China as firms grapple with unprecedented Western sanctions.

It follows a similar move into Türkiye earlier this year by the e-commerce outfit, and comes at time when the Russian economy is trying to pivot away from Western markets and forge new supply chains with the likes of China, Turkey and Iran.

Ozon said in a statement it already had 10,000 Chinese sellers offering goods to Russian customers on its marketplace, with China accounting for 95% of sales through its cross-border sales unit, Ozon Global.

'High Demand In Russia'

"Chinese products are in high demand in Russia," Ozon said, adding that, "the most popular orders from China are usually electronics - smartphones, laptops and computer parts - as well as small appliances and clothing."

It, however, did not specify when will the office be fully operational.

Many major Western consumer brands stopped sales in Russia after Moscow invaded Ukraine in February, and Chinese brands including Huawei and Xiaomi have gained ground in the Russian market this year.

Last week, Ozon reported a 48% jump in third-quarter total revenue to RUB 61.5 billion (€980 million). The company's reported net loss of RUB 20.7 billion (€330 million) compared with RUB 14.0 billion (€220 million) in the third quarter of 2021.

News by Reuters, edited by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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