Ozon Group CEO Danny Perekalsky shares online retail secrets
On October 11, RANEPA students had a chance to meet with Danny Perekalsky, General Director of Ozon Group. His lecture was the first in the series of events of the Up Business Club at the RANEPA Institute of Industry Management, the Faculty of Engineering Management.
Mr. Perekalsky began his presentation with citing the recent changes in the operation of the country’s largest online store he has been running for the last two years. The estimated number of online shoppers in Russia is 45 million, each of them making at least one purchase in six months. However, as the Ozon CEO noted, all these people prefer shipping Russian-style, which means the business format had to be adjusted to the Russian customers’ needs.
The first thing Mr. Perekalsky changed as he took over was the online store’s product assortment. Ozon started its business as a bookstore, but has by now diversified into an ‘all-you-might-need’ retailer. At present, the company offers over 4 million goods with books accounting for 25% of the total, the rest being electronics, household goods, children’s and sports goods.
Ozon monitors its competition daily and lowers prices if better offers are available on the market. Another important factor for an online retailer is convenience. The website engine should offer convenient tools for searching, comparing and paying for the products. All these factors support customer loyalty, ensuring that the buyers will come back for their next purchase.