Russian retailer Ozon Holdings is seeking to boost cross-border trade on its platform by opening a new office in Shenzen, China.
The announcement comes at a time when Russian companies are facing sanctions globally, forcing them to find new business partners in countries such as China, Iran, and Turkey.
According to Ozon, its marketplace already has some 10,000 registered Chinese sellers, who are driving 95% of the cross-border sales on its platform.
“Chinese products are in high demand in Russia,” Ozon said. “The most popular orders from China are usually electronics – smartphones, laptops, and computer parts – as well as small appliances and clothing.”
It is not just Chinese eCommerce sellers that are gaining a foothold in the Russian market, but also larger telecom companies. For example, Huawei and Xiaomi, both of which have been subject to bans in Western markets, are capturing market share in Russia.
The announcement comes on the heels of an impressive earnings report. Ozon saw its quarterly revenue rise by 48% to $1.01 billion, according to Reuters.