Ukrainian IT Services and Products Export Market Research 2003
Ukrainian e commerce market overview 2012
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«DELICIOUS» MAIL ORDER AND E‐COMMERCE MARKET VALUES IN UKRAINE In Ukraine, as in most of former Soviet countries, distance selling market is clearly divided into two groups: classic Mail Order companies (printed catalog) and online shops created during the last 5 ‐7 years by local entrepreneurs. Nevertheless, in spite of the parallel development courses of these two groups, they have purposefully trained consumers to enjoy comfort and convenience of remote purchases, and this made Ukrainian market to be one of the most promising and rapidly growing in European spaces for today. According to the data of profile association during last decade the market capacity and its growth accordingly are as follows: Diagram 1. Mail Order market capacity, mill. Euro, 2003‐2012 Source: Ukrainian Association of Direct Marketing, www.uadm.com.ua Market performance of 2009 requires a special commentary: The negative index dynamics is connected with a sudden devaluation of Ukrainian national currency in late 2008. But already in 2010 the market had stabilized and showed the growth that made 74% in EUR equivalent. According to the experts’ predictions, an active growth of the inside sales market (by 30% annually) will be observed in the next 3‐4 years. 95% of the market is obtained by more than a dozen large international distance selling companies which started to enter the Ukrainian market since 2000. Until now, still there is a tendency that 1 ‐ 2 operators enter the market each year. Diagram 2. Chronology of international distance selling companies’ entry into Ukrainian market, 2000‐2011 Source: Ukrainian Association of Direct Marketing, www.uadm.com.ua In terms of product items, the leadership is confidently kept by clothing / footwear – 36,4%, books and magazines occupy nearly one fourth each ‐ 23%, and consumer electronic goods – 20,3%. Small percentages are owned by cosmetics and body care products – 9,1% and household goods – 7,4%.
Transcript of Ukrainian e commerce market overview 2012
«DELICIOUS»MAILORDERANDE‐COMMERCEMARKETVALUESINUKRAINE In Ukraine, as in most of former Soviet countries, distance selling market is clearly divided into two groups: classic Mail Order companies (printed catalog) and online shops created during the last 5 ‐7 years by local entrepreneurs. Nevertheless, in spite of the parallel development courses of these two groups, they have purposefully trained consumers to enjoy comfort and convenience of remote purchases, and this made Ukrainian market to be one of the most promising and rapidly growing in European spaces for today. According to the data of profile association during last decade the market capacity and its growth accordingly are as follows:
Diagram 1. Mail Order market capacity, mill. Euro, 2003‐2012
Source: Ukrainian Association of Direct Marketing, www.uadm.com.ua
Market performance of 2009 requires a special commentary: The negative index dynamics is connected with a sudden devaluation of Ukrainian national currency in late 2008. But already in 2010 the market had stabilized and showed the growth that made 74% in EUR equivalent. According to the experts’ predictions, an active growth of the inside sales market (by 30% annually) will be observed in the next 3‐4 years. 95% of the market is obtained by more than a dozen large international distance selling companies which started to enter the Ukrainian market since 2000. Until now, still there is a tendency that 1 ‐ 2 operators enter the market each year. Diagram 2. Chronology of international distance selling companies’ entry into Ukrainian market, 2000‐2011
Source: Ukrainian Association of Direct Marketing, www.uadm.com.ua
In terms of product items, the leadership is confidently kept by clothing / footwear – 36,4%, books and magazines occupy nearly one fourth each ‐ 23%, and consumer electronic goods – 20,3%. Small percentages are owned by cosmetics and body care products – 9,1% and household goods – 7,4%.
Diagram 3. Products sold by distance selling companies structure.
Others; 4%
Clothing and footwear; 36%
Electronic consumer goods; 20%
Books and magazines; 23%
Household goods; 8%
Cosmetics; 9%
As to E‐Commerce companies group its market values could be judged by expert opinions of key players. Thus, the CEO of Allegro Group Ukraine holding (the largest holding company of electronic commerce field in Ukraine. At the beginning of 2012 the holding company includes 8 specialized projects, each of which is a leader in its UAnet segment) speaks of a billion of U.S. dollars in 2012. And Dmitry Lappo, director of the leading business literature online sales project ‐ Kniga.biz.ua, believes that Ukrainian Internet shops turnover in the past year was more than 2 billion of U.S. dollars, and in 2012 it may reach about 3 ‐4 billion of U.S. dollars. Undoubtedly, the data is contradictory, but even if we consider the minimum index, the market size is really considerable, taking into account rather low competition and vacuity in many niches. Thus Ukrainian Mail Order and E‐Commerce market in 2012 is about 1,5 billion of U.S. dollars and shows a steady growth of 30% each year. It is clear that in comparison with mature markets of Germany, France, Great Britain the Ukrainian market size doesn’t seem to be so impressive. BUT taking into account retail unsaturation and rather low competition among distance selling companies, vacuity in many niches, availability of all necessary infrastructure and possibility to manage business remotely from the central office/warehouse in Europe without representative office in Ukraine opening, the country with 45 mill. of potential consumers and annual growth of 30% becomes interesting enough to draw attention and to consider it as an option for business expansion. More detailed information about the situation, prospects, key players and everything you need to know to enter Ukrainian market one will find at Trade Mission to Ukraine for Mail Order and E‐commerce companies (20‐21th of September, Odessa). «3600 over distance selling market potential» - Trade Mission to Ukraine for Mail Order and E‐commerce companies (20‐21th of September, Odessa) is being held to attract attention of European and Russian companies of the industry to wide possibilities of Ukrainian market. The organizers of the Mission are companies with longstanding experience in launching and operational servicing of DS companies in Ukraine (Marketing Group OS‐Direct), in complex of transportation and logistics services from provider to consumer (PGK Groupe) and also professional associations of Ukraine (Ukrainian Association of Direct Marketing) and Russia (The National Association of Mail Order and Distance Selling Trade). With the support of modern printing house Univest Print http://www.univest‐print.com/eng/ and consulting company NBSC http://nsbc.kiev.ua//ru.html Detailed information and registration is available at http://trademissioninua.com/ and by e‐mail [email protected].
