When Wildberries expands into the Chinese market, a wave of pressure is expected for Russian self-employed, small and medium-sized sellers who rely on reselling margin goods and profit mainly from price differentials, without building a notable brand in Russia. This perspective comes from a prominent figure connected to the Skolkovo Foundation and the founder of Russia’s first system for legitimate promotion on major marketplaces, who spoke in an interview with a Russian tech outlet.
He warned that once Chinese players are cleared to operate in our market, nearly half of the vendors listed on Wildberries could exit the scene. Only those capable of establishing a recognizable brand are likely to survive. A second vulnerable group would be local producers who depend on Wildberries as their primary sales channel. In such a scenario, as many as 30 percent of industries tied to the platform as their exclusive channel could either go bankrupt or be compelled to seek alternative routes to reach customers.
The core challenge he highlighted is the price-quality dynamic. Chinese suppliers are positioned to outcompete their Russian counterparts on price and efficiency, potentially driving a significant portion of Russian offerings out of the market and into the lower to mid-tier categories. The one distinct advantage Russian entrepreneurs might retain is rapid delivery, though even this edge could fade if sorting and fulfillment infrastructure expands on Russian soil in the future. He noted that such a risk has not materialized in other large Asian markets where Wildberries operates, including China, but the development could alter the competitive landscape if it materializes here.
As of mid-August 2023, Wildberries reportedly completed the registration of its brand across all classes of the International Classification of Goods and Services in China, covering the full spectrum of offerings. This move marks a strategic deepening of the platform’s presence in a key consumer market and signals heightened competition for Russian sellers who previously relied on the platform primarily for low-margin resale.
Earlier reports indicated a broad interest among Russians in ordering alcoholic beverages through marketplaces and stores, suggesting a consumer trend that platforms are actively pursuing through expanded product categories and delivery options. Source: market analyses and industry observers.