How The Russian KupiVIP Profits from Otto
Jun 29th, 2009 by admin
For enterprises on the lookout for opportunities, Russia counts nowadays along with Turkey as one of the most attractive emerging markets for (electronic) mail order sales. Because while some may contend that the good ol paper catalogue is enough to keep the Russians satisfied, others are jettisoning their paper catalogue based businesses and are re-investing their money in more future oriented business models (Direct Group Acquires Stake in KupiVIP.ru):
Picture of The Shop Exchange: How The Russian KupiVIP Profits from Otto [source:excitingcommerce.com]
"Direct Group, which recently sold its Russian mail order business Na Dom to Otto Group of Germany, has invested $1 million in exchange for a 10 percent stake in online shopping club KupiVIP.ru, according to KupiVIP.ru CEO Oskar Hartmann.(.)
As part of the deal, Direct Group CEO Pascal Clment will join KupiVIP.rus Board. Direct Group, which sold a majority stake in Russias Amazon Ozon.ru to Baring Vostok Capital Partners in late 2006, shall bring its expertise in distance selling and logistics to KupiVIP.ru.
Founded in 2008, KupiVIP.ru previously raised $11 million in two funding rounds from Mangrove Capital Partners, Arlan and ABRT Fund. The online shopping club has more than 500,000 registered users. Its current monthly sales exceed $1 million."
Interestingly, the Otto Group is using the Limango private shopping club to move into Turkey in exactly the same way, but maybe thats because there werent any attractive catalogue businesses to buy out there. 
For those interested in the Russian online market, the blog of the Quintura search engine shouldnt be missed.
The KupiVIP founders around Oskar Hartmann were international participants, like iBOOD or DayDeal.ch, at the most recent Live Shopping Days conference in Berlin.
Mangrove Capital Partners Invests in Russian Shopping Club KupiVIP Live Shopping Days Conference Draws Crowds
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.[source:excitingcommerce.com]
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