ELECTRONIC

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ELECTRONIC COMMERCE in RUSSIA
(the very brief survey)
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Moscow
Russia
Kazan
800 km
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Kazan State University (Russia)

• Department of Economic Cybernetics
• The subject of education
• application of mathematical methods and IT
• towards the economic problems
• The main components of training
• Economics
• Mathematics
  E-commerce
• Information Technology

Law
Ethics
...
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• Olga A. Kashina
• (ak_at_mi.ru, okashina_at_mail.ru)
• Subjects of interest
• technological aspects of e-commerce
• Principles of distributed systems organization
• Web technologies (client server side)
• Security issues
• Disciplines taught
• Web technologies and their application in
  business and education
• Scientific applied software for economic
  solutions

Electronic Guides Development
http//kek.ksu.ru http//kek.ksu.ru/okashina.html
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Some Statistics

• According to the analitical digest
  (www.zametki.ru) of the Russian Internet
  marketplace activity
• 60 mln was the total amount of sales (B2C) in
  2000
• 100 mln was the expected amount of sales (B2C)
  in 2001
• In October, 2001
• 500 is the amount of large e-shops
  (www.magazin.ru February, 2002 936)
• 500 000 is the amount of the active
  Internet-buyers.
• 90 of the assortment computers, books, CD,
  video

36 / 47 - there is enough space for
growth. According to the report of the METAGROUP
company (www.metagroup.com) that had conducted
the comparative analysis of the state-of-the-art
in e-commerce in 47 countries in October 2001
occupied the 36-th place. Criteria, that were
taken into consideration The total amount and
the security level of financial transactions
(47) The market potential (living standard
products competitiveness ) (43) Technology
investments in technology improvement (44)
number of computers per capita (12) number of
Internet-connections per capita (47) number of
credit cards per capita (45 / 0,0012)
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Some More Statistics

• According to the report of the Russian Center of
  Public Opinion Research
• (www.wciom.ru) overwhelming majority of Russian
  residents has never used computers
• 16 of population use them regularly
• 9 every day
• 4 weekly
• 1 monthly.

The Ac?enture company (www.accenture.com) in
summer 2001 has conducted the poll among the
heads of the largest companies in 21 countries,
including Russia. Here are some figures 37 of
Russian companies are actively involved into
e-commerce 60 of respondents intended to
increase the investments into B2B sector (in
Russia this rate is 67) 83 intended to increase
the investments into new IT (mainly, m-commerce)
(in Russia - 90) absolute majority of
interrogated officials believe that the Russias
well-being depends on this sector of economy.

• American Chamber of Commerce in Russia
  (www.AmCham.ru)
• Informational support
• Investments into Russian economy
• In 2001 the American investments to Russian
  e-commerce 50mln
• (To compare the total amount of foreign
  investments to Russian economy in the first half
  of 2001 6,7 billion )

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Beyond the figures
The agents of the Russian e-market
Internet front-stores www.ozon.ru
, (books, video music production,
software, works of art, rarities)
www.megashop.ru
(computer hardware software, office equipment
accessories , digital cameras, games) books.ru
(all kinds of books in
Russian and in English) www.StroyShop.ru
(B2CB2B 1 000 000 items of
construction materials equipment, free
delivery, 4 types of payment (no e-payment
yet))www.aromat.ru (perfumery) www.bolero.ru
(books, software) www.cue.ru (billiard
equipment) www.cup.ru (tea, coffee, equipment)
www.dostavka.ru (computers,...) www.kenga.ru
(goods for children) www.tito.ru
(toys) www.softline.ru (software, books)
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Beyond the figures (continued)
The agents of the Russian e-market
Trade systems www.Eco
mAport.ru
www.otvet.ru
www.ematrix.ru variety of specialized shops,
services, news 2 catalogues goods services,
companies Hi-Fi tech

• www.StroyShop.ru (vertical portal)
• Wholesale service
• Internet-auction
• portal of news at the Russian
• market of building materials
• encyclopedia on web-resources
• Individual order service

• www.torg.ru (horizontal portal)
• variety of front-stores
• (from real estate to rattle toys)
• variety of services
• (law, insurance, delivery, publishing,
  advertisement,
• design)

• Holding companies
• www.eHouse.ru
• the open system of (11) most popular e-shops
• transportation company (www.skorohod.ru)
• reference system (www.pricematrix.ru)
• trade system www.ematrix.ru (for both agents of
  the Hi-Fi technology market),
• advertisement company (www.manifest.ru)
• service of banner exchange (www.bannerbank.ru)

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What than? The tendencies of e-commerce in
Russia

• ( According to www.zametki.ru)
• Expanding of the supply assortment, development
  of B2B section (automobiles, building materials,
  raw materials, consumer goods)
• Focusing of the assortment, development of
  e-shops specialized on definite goods (stamps,
  seeds of garden plants, goods for pets, fishing
  hunting facilities) or services (esp.related to
  the digital information retrieval and processing)
• Development of marketing activity
• Development of the delivery services (up to the
  moment it s the most weak ?????)
• Development of the supplementary services
  (consultations, delivering of more detailed
  consumer information, e-facilities for making the
  choice (design of a house interior, virtual
  fitting-rooms, virtual techniques for make-up
  selection)
• Expenditures reducing via cooperation (web-server
  hardware software acquisition and maintenance,
  IT and accountancy staff salary, products
  delivery, ...)
• Integration of markets (B2CC2C, B2CB2B),
  development of Internet-auctions
• Development of Internet-advertisement
• m-commerce development
• Development of e-payment systems

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E-money vs ususal one The
e-payment systems used in Russia
Due to www.zametki.ru it is expected that by 2006
e-payment will be almost total. CyberPlat
(www.cyberplat.ru) Assist (www.assist.ru)
PayCash (www.paycash.ru) WebMoney
(www.webmoney.ru) Russian Shopping Club
(www.russianshopping.com) Elit (www.elit.ru) insta
nt!(www.paybot.com/defaultrus.asp) interRussia
(www.interRussia.com)

• e-cash a technology, having 2 principle
  features
• the possibility to conduct the payments
  without transferring funds from one bank account
  to another
• the anonymity of the payments.

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Coming back to figures
CYBERPLAT GOES TO SPACE
www.cyberplat.ru
December 2001. CyberPlat System Processed First
Payments Made on Board a Space Orbital Station.
Russian spacemen Vladimir Dejourov and Michael
Tiourin have purchased flowers and gifts for
their relatives in he Internet shops, where
spacemen. All purchases were delivered to their
destinations at the time.
According to the annual report of CyberPlat 2001
was extraordinarily eventful and effective from
both the system development point of view and in
view of the financial targets attained. The
company has not only preserved but actually
consolidated and strengthened its grounds in the
B2C market and has turned into a leader of B2B
market.
2001 number of e-shops 177 (60 new in
2001) (now 186) number of goods
services gt 1 million turnover RR 1.68
billion (57.4 million) (8 times larger than in
2000) number of purchases 600 000 (now
650730 daily 900) market share (in the
segment of the on-line card-based Internet-
payments) 90-95.(twice larger than in 2000).
The "Dealer On-Line" project is being
implemented together with the Vympelkom company
operating under its trademark - BeeLine . 22
dealers involved. It has monthly doubling
turnover. (In June, 2001 300 ).

• Main features
• multibank operations strategy (13 banks)
• wide spectrum of payment tools

One more important event of 2001 is the company's
entry into American Chamber of Commerce.
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Coming back to figures
2001 Turnover WMR RR 53 466 618 WMZ - 10
774 412Number of transactions WMR - 58 050
WMZ - 348 606New registrations 90 953Amount
of unique hosts connected to the system 173 876
www.webmoney.ru
1) monthly amount and number of WMZ
transactions 2) monthly amount and number of WMZ
transactions 3) number of connected hosts and
new registrations
www.assist.ru
ASSIST is a leader at Russian Internet- market
and conducts more than 80 of the total amount of
Internet-transactions. (???)
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E-payment systems what is the difference?
(www.i2r.ru)
I. type of e-payments (type of participating
agents)
Participants
Type
Traditional analogues
Examples
Clearing between organizations
CyberPlat
Juridical ps.
B2B
Cash funds transfer
Consumers(buyers), Juridical ps. (sellers)
WebMoney
?2B
Cash, postal orders, cable transfer
WebmoneyPaycash
C2C
Consumers
Eaccess Phonepay
The very low value of the bargain (ex jokes
0.01/unit)
Consumers (sellers), Juridicals (buyers)
B2C
bank- bank
Banks
-
SWIFT
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E-payment systems what is the difference?
(www.i2r.ru)
I. type of e-payments (type of financial
operations )
Type
Application
Examples
Card account control
Plastic cards (credit or debit type)
Cyberplat (Cyberpos)
e-checks other payment obligations
Self-contained systems of inter-corporative
payments
Cyberplat (Cybercheck)
e-cash
Payments to consumers, e-analogues of tokens and
cards, paid in advance
Paycash Webmoney
Bank account control
Systems of "client-bank" type with the access
via modem or cellular phone
Telebank ("Gouta-bank")
AnelikWestern UnionMoney GramContact
Funds transfer without bank account opening
Funds transfer via computer networks similar to
post or wireless transfer
Internet-banking service 100 commercial
banks 10 e-payment systems.
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E-payment systems what is the difference?
II. technological principle
Security principle
Type
Examples
Telebank ("Gouta-bank") "Internet Service Bank"
Systems with central server
Secret access keys
Mondex, ACCORD-card
Smart-cards
Hardware techniques
Client-side e-wallets
Secure data exchange protocols, reliable
cryptography algorithms
PaycashWebmoney
Paid telephone call
Eaccess, Phonepay
Secure central database with PIN-codes,
hardware techniques, reliable telephone networks

• Other criteria
• Currency types (only RR, only USD, both of
  them...)
• Targeted market of goods and services (physical,
  digital,both of them)
• Volume of transactions

www.emoney.ru
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Latest Events
E-Russia in 2002 - 2010 (the Federal Targeted
Program) was signed by Russian prime-minister
Michail Kasianov on January, 30. It is aimed on
the development of IT and its implementation to
the state management and economy. The total
amount of finance involved in implementation of
this program is RR 76 billion, including 51
from the State Federal Budget, 30 from the
Local Subjects of Federation Budgets, 19 from
non-state sources. In 2002 the RR 600 mln are
allotted from the Federal Budget.
V Conference on E-Commerce in Russia (October,
31 November, 1, St.-Petersburg)

• Internet Investments (the International
  Forum, April, 25-26, St.-Petersburg)
• The state-of-the-art in IT-investments in in the
  world and Russia
• The prospect of e-commerce in the world and in
  Russia
• The fund-rising issues
• The specific features of e-commerce development
  in Russia, America and Europe,

Secure IT for business, government and civil
interaction, (March, 28 29, Moscow)
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Online resources

• WWW.MAGAZIN.RU
• catalogue of e-shops (936)
• catalogue of on-line auctions (13),
• catalogue of books and periodical press on
  e-commerce in Russian
• links to the payment systems sites www.emoney.ru
  
• announcements of events
• materials of seminars and conferences
• links to the news spiders lordtime.com.ua/news/

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P.S. You are welcome
http//uwphoto.ru E-shop of computer hardware
software, books, peripheral devices .