Amazon Amazon - Myth or Reality?

Amazon Amazon – Myth or Reality?

Natalia Solovyova

One of Russia’s richest businessmen has come up with plans to create an ecosystem in Russia similar to the world’s IT giant Amazon. To implement such a project, he contemplates the idea of ​​uniting
its assets in various business segments related to “human needs”. The exact dates, as well as the details of the project, have not yet been named. Experts are not sure about the success of the enterprise –
successfully combine so many diversified assets and create on their basis analogue of the Internet giant has not succeeded in anyone.

Who is going to build the Russian Amazon

With plans to create a trading ecosystem in the “image and likeness” Amazon in his interview with Bloomberg shared Russian billionaire chairman
board of directors of Severstal Alexey Mordashov.

Alexei Mordashov created his capital in steel production. In 2019, he, according to Forbes magazine, took 4th place in
rating of the richest businessmen in Russia, and his wealth was valued at $ 20.5 billion. Today, he owns almost 77% of the assets of Severstal and 100% of the capital of the power engineering holding.
Power Machines, the largest in Russia. Severstal is one of the most profitable enterprises and it pays the largest dividends to its shareholders. Steel consumption in Russia in 2019
year increased by about 4%.

But, as Bloomberg writes, today, almost half of a billionaire’s income comes from investing in consumer markets. Mordashov owns shares in the gold mining company Nordgold, the world leader in
of the birch plywood market of the combine, known as the co-owner of Bank Russia, National Media Group and Tele2. Mordashov’s share in the capital of the AVA-Peter clinic network reaches
98%. He and his family own 25% of the assets of the tourism giant Tui Group with a capitalization of almost $ 6 billion, and the online store “Kachkodzob”, ​​which, as of 2018, remains in the status of leader
Russian Internet segment of everyday demand, with a turnover of about 10.2 billion rubles (about 50% of turnover in the entire segment).

In 2019, Severgroup owns about 80% of the shares in Russia’s Ribbon supermarket chain, which is called the third largest retailer in Russia by this indicator.
ahead of only X5 Retail Group (“Five”, “Crossroads”, “Carousel”) and “Magnet”. The company’s turnover in 2018 reached 413.6 billion rubles, profit before deduction (EBITDA) – 36.2 billion rubles.
The businessman is also investing in TalentTech’s fast-growing IT startup, which has three key business areas (education, HR and self-employment) in his area of ​​interest.

Are there changes?

Each of these areas, according to the businessman, is on the verge of major changes. For example, the Ribbon supermarket chain expects an emphasis on online sales and fast delivery while keeping the model
hypermarket. According to experts Bloomberg, in the future, “Ribbon” and “Kachkodzob” the owner can combine.

Businessman interested in expansion and tourism business. “A person’s desire to travel is as constant as the need for food or communication,” his media statement quoted him as saying. In his
interview he said that last year’s collapse of the tourism industry giant Thomas Cook “improved” the industry, as well as a positive impact on the business TUI. It is possible that the businessman added that
it will take another step in the tourism business by proceeding directly to the construction of hotels.

The plans for the educational services market are to consider creating an online university, as the existing education system is, in his opinion, outdated.

The business of healthcare services provided by the AVA-Peter network is also undergoing changes: it is entering the markets of other regions, as well as the development of various online services, including diagnostics as well as

It is these assets, according to Mordashov’s plans, that should become the basis for the creation of the Russian IT giant. “We have several investments related to human needs: education, medicine,
travel and retail, ”Bloomberg quoted him as saying. “We are thinking of creating an ecosystem based on these assets, a kind of Amazon.”

Will Mordashov become another Jeff Bezos?

Just 20 years ago, Amazon was a simple online bookstore. Today, it is the world leader in online stores, with a market value of $ 994 billion.
The company is expanding its presence in the markets of Whole Foods, Pharmacy (Amazon Pharmacy), Streaming Services (Amazon Prime Video) and Logistics Services.
(Prime One-Day Delivery), occupies almost a third of the cloud market, develops artificial intelligence technologies and innovative payment services (using a palm print).

So far, neither the timing nor the other details of the new project Mordashov does not specify. However, experts interviewed by Russian media are already questioning the success of the company.

“In the case of integration of a trading network, an online store, as well as a tourism and technology company, a good ecosystem has not developed by itself, the desired synergy between the quite differentiated
assets may not develop. This will require another common additional link, for example, financial – experts say “Algo Capital”.

There have been no precedents for the effective unification of multidirectional companies into a single stable system – says IT-market expert Andriy Ryabikh. Alexey Mordashov has many different directions
the assets he wants to add up to get Russia’s Amazon. But it is more likely that only IT vinaigrette will come out of all this. All these assets are different companies, from different industries, already
people and business processes have evolved, he commented.

“While news about the creation of another ecosystem should be taken as a tribute to fashion. In due time the initiative of the Savings Bank of the Russian Federation on creation of the first in Russia e-banking ecosystem has not found
broad understanding, ”added senior risk manager of Algo Capital Vitaly Manjos. – As for Alexei Mordashov’s assets, there is no apparent common link between them.
Rather, it is a diversified set of businesses. Now the condition for successful development of new ecosystems is finding their own market niche and building effective internal links between
components. At this stage, Mordashov’s plans should be considered as a large-scale business experiment without obvious guarantees of great success. ”

Mergers of companies usually do not bring notorious synergy: technological and operating arrangements are so different that the merger costs huge money, and costs are not usually paid off. announced
Mordashov’s assets list consists of completely different business ideas and operating activities of companies, and it is unclear what they can give each other,
Alor Broker analyst Sergey Rapotkov. From the beginning, Amazon was created as an online retailer, and entered the developed consumer market, to high-income households. in Russian
Amazon is set to develop a market where real revenues have been declining for the past five years, and in order to attract buyers, it will need to offer something particularly unique.

In addition, experts say, the news of the creation of an analogue of Amazon is unlikely to be positive for the depositary receipts “Tape”. Investors are currently worried about changing the jurisdiction of the company and
desire to receive dividends, not participation in the construction of a large online playground with unknown profitability, said experts of Alor Broker.

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