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Why foreign retailers come to Ukraine

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Entering the market, international brands often evaluate three factors:

– Saturation of the retail market,

– The number and quality of projects of shopping centers, which are presented in the market,

– The number of existing market entry barriers.

The saturation of the Ukrainian retail market remains one of the lowest in Europe. In this high-quality projects have become more and more. And this year, offering a unique project in many ways – the largest Ukrainian Central City shopping mall Ocean Plaza, the quality of which corresponds to the world standards.

At the same time, according to experts, many foreign operators have already studied all the possible obstacles entering the Ukrainian market, put up with them or have learned to overcome them.

As a result, by the end of this year we will see in the mall about 40 brand new for Ukraine in Ocean Plaza. 60% of new brands will be due to local market operators, who have long been working in Ukraine. 40% of new brands will enter the market independently.

The country of origin of franchise leader is Western Europe. A direct investment – the countries that are closer to us and whose investments have long been widely present in Ukraine, Russia, Romania and Turkey.

The format for the new Ukrainian brands, according to the experts, about 20% of them – it is food and drink, the other 80% – a fashion brand.

It is significant that 30% of new strand brands are goods premium level. Earlier in our country goes no more than one or two of these brands in the year, as they were developed specifically nowhere. In 2012, we see a greater expansion of expensive brands, some of which will be presented on the Bolshaya Vasilkovskaya street, but most – in the SEC Ocean Plaza, where the first in Ukraine to be established premium gallery.

According to experts, massive entering of foreign retailers in the Ukraine market is also due to the active and long process of creating a positive image of our country and the promotion of Ukrainian projects on the international market.

In 2012 possible enter for a minimum of 32 new brands in Ukraine and Kiev. 28 of them will be presented in the SEC Ocean Plaza.

	Brand	Country of origin	Object
1.	LC Waikiki	Turkey	SEC Ocean Plaza
2.	Longchamp	France	SEC Ocean Plaza
3.	Furla	Italy	SEC Ocean Plaza
4.	Lady Gentlemen City	Russia	ТРЦ «Караван»
5.	Dolce Gabbana	Italy	ТЦ «Мандарин Плаза»
6.	MaxMara Weekend	Italy	SEC Ocean Plaza
7.	Trussardi Jeans	Italy	SEC Ocean Plaza
8.	BCBG	USA	SEC Ocean Plaza
9.	Bebe	USA	SEC Ocean Plaza
10.	Camper	USA	ТРЦ «Караван»
11.	Napapijri	Italy	SEC Ocean Plaza
12.	Rebeca Sanver	Portugal	SEC Ocean Plaza
13.	Cinque	Italy	SEC Ocean Plaza
14.	Pepe Jeans	Spain	SEC Ocean Plaza
15.	Diesel	Italy	ул. Крещатик
16.	Reiss	VB	SEC Ocean Plaza
17.	Blanco	Italy	SEC Ocean Plaza
18.	Camicissima	Italy	SEC Ocean Plaza
19.	Strellson	Germany	SEC Ocean Plaza
20.	Suvari	Turkey	SEC Ocean Plaza
21.	Michael Kors	USA	SEC Ocean Plaza
22.	Marina Rinaldi	Italy	SEC Ocean Plaza
23.	Atelier	France	SEC Ocean Plaza
24.	Denis/Why Denis	Romania	SEC Ocean Plaza
25.	Happylon	Kazakhstan	SEC Ocean Plaza
26.	Segafredo	Italy	SEC Ocean Plaza
27.	KFC	USA	SEC Ocean Plaza
28.	S.Oliver	Germany	SEC Ocean Plaza
29.	Oviesse	Italy	ТЦ «Украина»
30.	Soocre	Greece	SEC Ocean Plaza
31.	Patrizia Pepe	Italy	SEC Ocean Plaza
32.	Catherine Leman	Russia	SEC Ocean Plaza

Best selling products in Ukraine online

Supermarkets

Best selling products in Ukrainian Internet 2013

Consumer interest in Ukrainian people has shifted in favor of new product categories. Studies of the dynamics online purchases in January-April this year, which analysts had Aukro.ua, showed that, compared with the same period last year, more than three times the volume of purchases in the category “Auto Parts, Tuning, GPS” , 1 , 5 times – in the category “Sports and Health” and 95% – in the category “Tablets, Laptops, Computers.”

The share of traditionally popular items, in particular, mobile phones and clothing in total sales has declined. From the first position in the ranking of the most popular online products mobile phones and smart phones pressed tablets and computers. Ukrainians began to buy the tablets are not only more likely, but to spend more money on them – in 2013 average check purchases in the category “Tablets, Laptops, Computers” has increased by 31%. The average amount of monthly purchases has remained unchanged at more than 450 hryvnia.

Aukro.ua analysts believe that the results obtained and, in particular, the fact that the growing dynamics of sales of non-traditional products for the Internet, point to the fact that Ukrainians have more confidence in online shopping.

Top of the most purchased goods in Uanet (Ukrainian Internet) according Aukro.ua

Product category	The increase in sales for the year	Share in total sales, January-April	Share in total sales, January-April
Tablets, Laptops, Computers	95%	19%	17%
Mobile phones, Smartphones	23%	16%	23%
Collectibles, Antiques	44%	15%	19%
Clothing, Shoes, Accessories	80%	14%	14%
Auto Parts, Tuning, GPS	359%	7%	4%
Sports and Health	145%	7%	5%
Household appliances	155%	5%	4%

Recall, according to research Aukro.ua, from mobile phone users Uaneta make purchases less frequently than with computers, but become more expensive goods. The average check per user per month was 350 hryvnia.

Where Ukrainians and the Europeans prefer to buy food? – research

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SPECIAL OFFER – Database of Ukrainian retailers
The company GfK Ukraine, the market leader in market research in Ukraine, said that hypermarkets are becoming more popular in Central and Eastern Europe. However, their share in Ukraine amounts to only 8% – Ukrainians prefer to shop in supermarkets. Interesting, among the most important characteristics of shopping Europeans selected discounts and special offers, Ukrainians prefer proximity and low prices. This is evidenced by the results of investigations Shopping Monitor CEE 2012, conducted in October-November 2011 in 10 countries in Central and Eastern Europe.

Europeans prefer hypermarkets, Ukrainians – supermarkets

Most of the Europeans choose hypermarkets to make purchases of food and nonfood products: in Romania of 54%, in the Czech Republic – 44%, in Poland, Bosnia and Herzegovina, Hungary – just under half of respondents. In Ukraine, as well as in Serbia, the share of hypermarkets is only 8%. Supermarkets are popular in Ukraine, where 45% of respondents do the bulk of purchases of consumer goods. The same percentage of respondents select supermarkets in Bosnia and Herzegovina, in Slovenia this figure stood at 47%.

Who buys the food and daily goods in bazaars?

The number of respondents, who prefer unorganized trade by purchasing consumer goods in all the countries of Central and Eastern European countries, is insignificant, except Ukraine and Romania. Percentage of Ukrainians, who prefer markets, although it is rapidly declining in recent years (by 7 percentage points over the past 2 years), is still the largest in the region – 15%. Among Romanians these respondents are 8%.

Europeans appreciate wide assortment

On the question, why respondent chose particular store, the majority of respondents in all countries, called the low prices, wide product range and of course, the availability of discounts and sales. Ukrainians are more than people from other countries of region appreciate the proximity of the store (about 70% chose this option), as well as low prices for some goods (about 24%). At the same time, much quieter is their relation to characteristics such as a wide range of products, discounts and sales, courteous staff, working hours and the ability to go shopping by car (lower or one of the lowest figures among the countries of the region).

Only 11% of Ukrainians often go shopping by car, some more 12% use a car when planning major purchases. This is the lowest result among the countries of Central and Eastern Europe, where a car for making purchases using a total of 45% (Bulgaria) up to 68% (Bosnia and Herzegovina).

Distribution of promotional materials retailers

In countries such as Romania, Czech Republic, Slovakia, Hungary, Poland and Slovenia at least 60% of respondents read flyers, which they get from retailers, from 11% (Poland) to 56% (Romania) respondents made purchase in accordance with these flyers.

Half of Ukrainians do not receive promotional material retailers at all. Only 9% of respondents in Ukraine (the same figure in Bosnia and Herzegovina) receive materials, read them and make purchases in accordance with it. Retailers are less active in Serbia, where 69% of respondents did not receive materials at all, and just 3% receive, read and do purchase according to it.

Study of Shopping Monitor 2012: Background information

Shopping Monitor 2012 study conducted in October-November 2011 in ten countries of Central and Eastern Europe – Bulgaria, Bosnia and Herzegovina, Poland, Romania, Serbia, Slovakia, Slovenia, Hungary, Ukraine and the Czech Republic. Respondent – a person who is responsible for daily purchases of food and nonfood consumer goods in the household. During the investigation of Shopping Monitor 2012 were interviewed from 649 (Poland) up to 1060 (Ukraine) respondents. The method of the inquiry is a personal interview at home of the respondent or a telephone interview.

According to the materials gfk.ua

How grocery chains have weathered the crisis

Supermarkets

The rapid development of commercial networks this year is easily explained. Salaries Ukrainians grow faster. If the entire 2011 year, they have grown on average by 8.7%, in January-August this year has jumped by 15.3% compared with the same period of the last (data Gosstat). And all this happened against a background of low inflation rates.

But how to explain the rapid growth of grocery chains in the midst of the crisis in late 2008?

Crisis did not notice?

The Fastest growing company was “Eurotech”. If at the end of 2008 it consisted of only nine points, but now it has been 69. That is an increase of almost 767%! Keep pace with other companies, as is evident from the graphs.

“The market is too saturated” – explains the reason for the growth of Igor Guglya, director of GT Partners Ukraine. According to him, in recent years, retailers have started to actively gain medium and small cities, where there is an acute shortage of modern shops. While there remains a city where there is no network of grocery stores.

Moreover, during the crisis, prices for rental properties greatly subsided, and traders it easy to agree on the best places for their stores.

Another reason for the rapid growth of networks the inertia of Ukrainian bureaucracy. Plans before the crisis continued to open stores in the crisis, when incomes were reduced (in 2009 wages fell more than 9%).

“The opening of new shopping centers – a long-term process, for example, in” METRO Cash & Carry Ukraine “only store building can last up to 3 months, but before construction must still find a building plot just to get all the necessary documents, and etc. Therefore, to stop the process of expansion at some point for the company does not make economic sense, “- says Anna Kurbatova, Communications Manager” METRO Cash & Carry Ukraine “.

Less is more

But we cannot say that the crisis in general had no effect on traders. Owning retailers had to give up a huge store in favor for more compact stores.

Like mushrooms after the rain began to appear small “convenience stores” and discounters with cheap products, but limited selection of goods.

“During the crisis, mainly developed network of small formats” – agrees Anna Kurbatova. Its network began in 2011 to develop the small shops to 2 thousand square meters with a range of about three thousand items, called “METRO Base.”

Before it stores “Metro” in Ukraine existed only in standard area of 16 thousand square meters and with a range of 30 thousand items. Thanks to this new approach, the company managed to open stores in relatively small cities – Kremenchug, Ternopol, Kirovograd and Lutsk.

For cities is a great investment, because even in the low-price shop area of about 1 thousand square meters have to invest about $ 1.8-2.7 million (if you buy, not rent a property), explains Igor Guglya from GT Partners Ukraine. The “convenience stores” have less to invest. For example, the network of “Nash Kray” is now developing a network of express minimarkets area of 50-100 square meters. If you rent a room, you can open a new shop even $ 23,000.

“In the usual” shop at home “does not have its plants for the production of food (bread, cooking), in contrast to the supermarkets. In each store, our network format “shop at home” BK “Express” has its own mini-bakery, the area allows. Low level of staff, although their level of training above. In small shops seller and cashier and bookkeeper are able to accept products, and put to the position, “- says about the nuances of this business, Dmitry Kashirin, commercial director of “Fudmarket “(included in” Retail Group “, which is developing a network of” Great Kishenya “,TC” Alta Center “,” Equator “,” Velmart “). Find design ideas for your home on Lushome.club.

Opening of the same large size – Hypermarket – associated with the construction of a single building. For this it is necessary to acquire the land and take a lot of coordination, because the volume of investment can range from $ 5 (the most compact hypermarket) to $ 20 million (a huge shop).

Supermarket: Why is hard for supplier to find a common language with the supermarkets?

Supermarkets

How to work with Ukrainian supermarkets?

uk supermarket aisle tesco greener photo

What are the conditions of work with them?

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Reason 1

The supplier sells “on the shelf” and a supermarket sells to the consumer.

Most of suppliers see their role in making (or finding) “quality” product, and by hook or by crook to put on the shelf at the supermarket. At that to put the entire package of goods and do it immediately. So, the role of the supplier is to manage a supermarket.

To do this, held lengthy talks with the managers of supermarkets, where the supplier present its products with illustrations and talks about its merits, in convincing impeccable quality, rushes ambitious phrases: “We want to take a minimum of forty percent from the leading brand”, “Ours quality is the best on the market “.

Whether such arguments are convincing to the supermarket? Practice shows that, after such negotiations, the manager of a supermarket with no less ambition gets its price list and saying, “Want to see your product on our shelves – pay,” solemnly handed it to the supplier. Why is this happening?

In order to better understand this, you need to understand the role of the supermarket business, but also know how the supermarket put its position on the market. The vision of the role of the supermarket is to maximize the satisfaction of needs of the final customers. Therefore, supermarkets, contrary to the suppliers, not thinking about how to present all of the entire products in own store. Their thinking is focused on the construction of such sales, which will involve a maximum of supermarket consumers and make them loyal customers. In other words, the role of the supermarket is to serve the consumer, and thus manage the supplier as it “requires” the final customer.

Reason 2

The supplier sells the entire range; supermarket sells the one that corresponds to its positioning.

Often the range of supplier “washed out” in the price list you can find everything. Although to date most of the suppliers are focused on selling more narrow range of goods, not all in cooperation with supermarkets account for how a supermarket positions.

As a consequence, there are strange requirement to pay “entrance fees” in the supermarket, following which there is no guarantee that the product will be presented to more than two or three months. For example, a major dairy producer has paid quite a tidy sum for the presentation of goods in one of the largest supermarkets network of Odessa. But three months later, after the optimization of assortment, supermarket has excluded more than half of the range of this brand from its own database. One of the reasons was inconsistency brand image and a network of supermarkets.

Reason 3

Failure to comply with obligations to pay of supermarket for the goods delivered.

Very often the supermarkets do not maintain the payment terms, which are set out in the contract and pay for any parts or delayed.

Approximately 80-90% of visitors make regular supermarket shoppers, with the exception of supermarkets, which are located in the central streets of the city, on the central highways, etc. This means that we, as consumers continually spend our money in one place. More money we spend in the first days of wages (except for business owners), and decreases the amount of our costs while waiting for the payment of wages. All this means that the trade has ups and downs, but we continue to make purchases because we want to satisfy the most basic need – the need to quench thirst and hunger.

Start work with Ukrainian supermarkets, leave an inquiry on [email protected]

Supermarket: Why is hard for supplier to find a common language with the supermarkets?

How grocery chains have weathered the crisis

Supermarkets

Why foreign retailers come to Ukraine

Best selling products in Ukraine online

Where Ukrainians and the Europeans prefer to buy food? – research

How grocery chains have weathered the crisis

Supermarket: Why is hard for supplier to find a common language with the supermarkets?

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