Lamoda decided to expand its jewelry sales business

The online retailer’s development strategy was presented on November 27 at the Lamoda Brand Day. According to the company’s calculations, in 2028 the jewelry segment will reach 5% of all market sales, up from less than 1% currently.

According to Data Insight, in the first half of 2024, specialized online stores sold jewelry worth 36.3 billion rubles, of which 26.9 billion rubles were sold on large platforms: Wildberries, Ozon, Yandex Market and Megamarket. A smaller proportion in these statistics is occupied by Lamoda, belonging to non-specialized retailers with a sales volume of 3 billion rubles.

The entire jewelry retail market in Russia in the first half of 2024 grew by 28% to 205 billion rubles, and the share of online sales increased to 29%, Infoline reported. Infoline Analytics CEO Mikhail Burmistrov noted that Lamoda’s strategy allows it to develop the jewelry segment with minimal cost, but limits scaling. However, this is an organic addition to the market portfolio, aimed at the main audience: buyers in the “medium plus” segment.

Fedor Virin, partner at Data Insight, added that the jewelry category will help strengthen Lamoda’s position in the market. However, in his opinion, this direction will not bring a significant increase in revenues and profits due to the market’s dependence on the cost of precious metals. According to data from the Bank of Russia, the price of gold in 2024 increased by 58%.

In 2023, Lamoda increased its net turnover (NMV) by 30% compared to 2022, up to 132.5 billion rubles. EBITDA amounted to 11.8 billion rubles, an increase of 10% compared to 2022. Net turnover under the market model increased by 40% over the year.