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Why foreign retailers come to Ukraine

Ukraine+SEC+Ocean+PlazaEntering 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.
Country of origin
LC Waikiki
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
Lady Gentlemen City
ТРЦ «Караван»
Dolce Gabbana
ТЦ «Мандарин Плаза»
MaxMara  Weekend
SEC Ocean Plaza
Trussardi Jeans
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
ТРЦ «Караван»
SEC Ocean Plaza
Rebeca Sanver
SEC Ocean Plaza
SEC Ocean Plaza
Pepe Jeans
SEC Ocean Plaza
ул. Крещатик
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
Michael Kors
SEC Ocean Plaza
Marina Rinaldi
SEC Ocean Plaza
SEC Ocean Plaza
Denis/Why Denis
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
SEC Ocean Plaza
ТЦ «Украина»
SEC Ocean Plaza
Patrizia Pepe
SEC Ocean Plaza
Catherine Leman
SEC Ocean Plaza

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

How to work with Ukrainian supermarkets?
uk supermarket aisle tesco greener photoWhat 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.

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Best selling products in Ukraine online

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, 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. 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
Product category
The increase in sales for the year
Share in total sales, January-April 
Share in total sales, January-April 
Tablets, Laptops, Computers
Mobile phones, Smartphones
Collectibles, Antiques
Clothing, Shoes, Accessories
Auto Parts, Tuning, GPS
Sports and Health
Household appliances
Recall, according to research, 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.

How grocery chains have weathered the crisis

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
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).

The capital of Ukraine among the top three cities for the expansion of global retailers

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Kiev became a more attractive city in the eyes of international retailers – according to data company CBRE.
CBRE Consulting company released its annual global survey of retail real estate segment, “RETAILERS: DEGREE OF GLOBALIZATION OF BUSINESS 2012» («How Global is the Business of Retail 2012”).
The target of research was to identify general trends in the development strategy of retailers, including the definition of a global presence as a retailer in the world markets and in major cities. This survey covers 326 key international retailers, as compiled by ranking includes 200 cities in 73 countries around the world.
According to a new search in the ranking of cities according to the degree of presence of international retailers, Kiev won 64 seats, up from 78th ranking in 2011. At the end of 2011 in Kiev attended by 25.2% of the interviewed retailers, while at the end of 2010 – 22.6%.The three leading cities in the degree of presence of international retailers are still in London, Dubai and New York.
It is noteworthy that over the last year Kyiv was one of the highest priority cities for the release of new international retailers that were not previously present in the market. In 2011 in Kiev appeared nine new international retailers, which put our capital in the third place in the “new exits” among all the cities.
The leader of the outputs of new retailers became Almaty, which last year opened their shops, 18 new international retailers. This was facilitated by significant infrastructure improvements, opening of new professional shopping centers and entrance brands of Inditex in 2010, which in turn encouraged other retailers to the entrance. At the 2nd place on the “new exits” is Moscow with 11 new international operators. Overall, European cities is the highest priority for the expansion of retailers, accounting for 48% of new discoveries in 2011.
Based on a global search by CBRE was also made ratings of the degree of presence of international retailers, in which Ukraine is ranked 34th, up from 39th in the ranking in 2011 According to CBRE, today in Ukraine is represented 25.8% retail chains taken into account in this study.
Ranking of countries with the highest presence of international retailers fifth year, led by the United Kingdom, where concentrated 56.7% of retailers. It is followed by UAE (53.1%), U.S. (50.3%), Spain (47.5%) and closes the top five leaders of China (47.2%).