Online e-commerce platforms, KupiVIP and Mamsy, both managed by parent company, Private Trade, have announced they will close after 13 years in operation.
KupiVIP was established in 2008 and focussed on discount sales. The company had over 3,000 suppliers from Russia and abroad. According to Fashion Consulting Group, the platform’s turnover decreased by 10 percent year-on-year in 2020, to 4.5 billion roubles ($61.7 million).
Mamsy specialised in mid-price products for children and women. Its revenue last year, according to SPARK-Interfax, amounted to 671.6 million roubles ($9.2 million), representing a year-on-year loss of 167.9 million roubles ($2.3 million).
According Private Trade’s financial reports, the company’s losses in 2020 amounted to 414 million roubles ($56.8 million). The company seemed unable to take advantage of Russia’s online fashion market increasing 45 percent in a pandemic-impacted 2020, its own turnover decreased 40 percent over the same period.
Competitors, meanwhile, saw growth roughly in line with that of the online fashion market, Wildberries increased turnover 45 percent year-on-year and Lamoda’s turnover was up 43 percent on the year.
In May 2021, Yandex.Market announced it would purchase of Private Trade, but in July the tech giant announced it was pulling out of the deal without disclosing why.
Although Yandex backed out of a deal to buy fashion e-tailer KupiVIP in July, the tech giant hasn’t given up on the fashion segment, announcing earlier this week at its Yandex Fashion Day conference that its own Yandex.Market platform would be doubling down on fashion category expansion.