Russian market on Payment Systems for Vending Machines

1. Payment Systems for Vending
Machines
Russian Market Potential
Viacheslav Makovich, makovich.v@gmail.com

2. Russian Vending Trade Market
• Retail market: 450 mlrd. Euros
• Vending trade in Russia is still
undeveloped, it forms 5% of nonstore
trade and 0,2% of general retail market.
• Top 5 players (Nestle, Uvenco,
KommPass, Assorti, Siba Vending) forms
more that 1/5 of Russian market.
– Nonstore trade: 20 mlrd. Euros
– Vending trade: 1 mlrd. Euro
22%
38%
40%
Market structure
Top 5
companies
Middle size
companies
Small players
(less than 15
machines)
Sources: MinPromTorg, EVA, National Association of Automated Trade

3. Vending Market Potential
• There are only 80 000 operating vending
machines on Russian market, that is
much less than in markets of EU and US.
• According to NAAT number of operating
vending machines Russian market will
exceeds 400 000 units
Number of inhabitants per 1
70
USA
EU
Number of operating
vending machines
450000
400000
350000
300000
250000
200000
150000
100000
50000
Sources: Euromonitor, National Association of Automated Trade (NAAT)
1800
150
Russia
vending machine
0
2013 2020F

4. Vending Market Structure
• More than 80% of operating machines
are hot drinks and snacks machines. The
share of hot drinks machines are much
more than on EU markets, experts
predicts growth of snacks segment.
• 2/3 of vending machines are in Moscow
and St. Petersburg
Types of machines
Hot drinks vending machines
Snacks vending machines
Packaged drinks vending machines
Others
62%
14%
20%
4%
Sources: Euromonitor, Retail&Loyalty Magazine (#2 2013)
75%
25%
Geography
Moscow &
Spb
Other cities

5. Vending Market Size
• Annual market size is 9 000 units.
• Most of machines are imported.
• EU producers are main players on coffee
and snacks machines, producers from
China – on entertainment machines,
Russian producers focus on small
segments of vending machines.
Market Structure
Import
from EU
56%
Produced
in Russia
33%
Import
from other
countries
11%
Local Producers: Unicum, Razumnie Machini
Import Producers: N&W Global Vending, Saeco,
Sources: Discovery Research Group, Import statistics
Damian, Bianchi Vending Group,
Rheavendos, FAS Intarnational

6. Overview of Russian Payment
Systems Market
Necessary
factors
Current trends Core players Price range
•Protocols
EXECUTIVE or
MDB/ICP
•Easy to install
and operate
(even by person
with low
qualification)
•Ability to give
change and
large capacity
for change
•Vandal safety
•Cashless
payments
Sources: study of VM Consult
•CoinCo
•MEI Group
•ICT
(Gamemax)
•LOTTE
•CashCode
•Coins systems:
100-180 Euro
•Banknotes
systems: 300-
400 Euro

7. Prospects of cashless systems
Experts expects growth of demand on
cashless payment systems due to the
following factors:
• Growth of cashless payments volumes
• Low payment power of coins in Russia
(it’s necessary to have large number of
coins to make payment)
• Low current volumes comparing with
other countries
Share of cashless cashless
payment systems, %
Germany
80
60
40
20
0
0 5 10 15 20
Volume of retail cashless payments in Russia, mlrd. Euro
Sources: RBC
2008 2009 2010 2011 2012
Russia

8. If your company has a principle interest
to development on Russian market,
please contact us at
makovich.v@gmail.com
and we will support you