Stimulating Regulation is Essential
Riding the Wave of Digital Platforms: A New Era for the Russian Economy
It's clear that the Russian economy is swiftly transitioning towards a platform economy. In 2024, the turnover generated by the biggest digital platforms soared to a staggering 12 trillion rubles - that's roughly one fifth of the country's total trade turnover. Last year, a whopping 10 billion transactions were executed on these platforms.
Small and medium-sized businesses, making up no less than 80% of sellers, play a crucial role in this digital revolution. It's estimated that between 13 to 15 million people have worked on these platforms at some point, with around 3.7 million of them as regular, constant "platform-employees."
While attempts to regulate this growing sector are necessary, a delicate balance must be struck. Regulation should not favor foreign platforms over national ones, as this could hinder domestic growth. Instead, regulation should stimulate rather than stifle the blooming digital economy.
Breaking Barriers: Leveraging Digital Platforms for Export
The head of the Federal Tax Service, Daniil Egorov, emphasizes the potential for digital platforms to create new channels for Russian exports. With digital platforms handling this work, sellers can easily tap into foreign markets without facing the usual obstacles.
Evolving into Ecosystems: Digital Platforms Go Global
Tatyana Kim, Co-founder and CEO of Wildberries, explains how digital platforms are gradually transforming into ecosystems, addressing larger, more complex problems. The goal for these digital giants is to become strategic partners of their home and host countries, fostering closer economic ties.
Moving Forward: A Journey Towards Integration
Vladimir Kirienko, General Director of VK, highlights the trend of adding services to platforms, with social networks incorporating video platforms and even launching messengers. Partnerships are key to this growth, as companies like Ozon, Rustore, and Yandex Taxi illustrate. By collaborating with regional governments and supporting local sellers, they help spur regional growth.
Supporting Local Businesses: A Regional Approach
Regional showcases launched by Ozon demonstrate the importance of region-specific development in stimulating marketplace growth. The company works hand-in-hand with regional governments to support small and medium-sized enterprises (SMEs), providing valuable data on seller registration and turnover for each region.
Better Together: Compete-tion and Collaboration in a Digital Age
Ecosystems like MTS represent a digital bridge linking clients with services, with the secret to their success resting on delivering excellent service and maintaining a robust platform. Partnerships and collaboration are crucial in today's evolving digital landscape, as exemplified by joint projects between various platform providers.
Preparing for the Future: Embracing the Era of 5G and AI
As the world looks forward to the 5G era, several billion people are already enjoying its benefits. Rovshan Aliyev, President of GK "Ecosystem MTS," believes that the next few years will bring exciting times for the digital economy. The integration of Artificial Intelligence (AI) into user journeys promises to maximize the potential of digital platforms and streamline the user experience.
Building Digital Ecosystems: Real Estate and Beyond
CIAN, a digital platform focusing on real estate, now represents an entire ecosystem of services. With an average of 1.7 real estate transactions per person in Russia, digital platforms like CIAN have a significant impact on the economy. By 2024, around 20% of primary housing was sold through digital platforms - a testament to their growing influence.
The emergence of digital platforms has revolutionized the Russian economy, creating new employment opportunities and transforming the labor market. With supportive government initiatives and promising trends on the horizon, the digital ecosystem in Russia is poised for continued growth and innovation.
Sports can serve as a new frontier for digital platforms, offering untapped potential for seamless integration and expansion. For instance, sports events could be livestreamed on these platforms, giving fans around the globe an immersive experience without geographical constraints.
The digital economy's success stories in Russia show that collaboration and competition go hand in hand, creating a symbiotic relationship that fosters innovation. By embracing partnerships with sports organizations, digital platforms can tap into the passionate fan base and create engaged communities, further propelling the growth of the digital economy.
