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6th
            Issue
              December	2011
                              CROSS-BORDER
                              DISTANCE SELLING
                              IN UKRAINE: INFO DIGEST
                              Dear Colleagues,
                              We, the Ukrainian Direct Marketing Association, are glad
                              to wish you a Merry Christmas and a Happy New Year.

                              We wish your business a very successful and prosperous
                              New Year 2012, and your achievements and triumphs to
                              inspire wonder of the public.
                                                               	
                                                               	
                              	      	         	            										Valentin	Kalashnik,	
                              	      	         	                  				President of UDMA




           MarKeT NeWs
           Mail orDer aND e-CoMMerCe MarKeT iN uKraiNe
           Ukraine still remains Terra Incognita for a large majority of Eu-         Diagram	 1. Capacity of the mail-order market in Ukraine
           ropean companies specialized on the mail order. Meanwhile,                in mln EUR, in 2003-2012.
           it is the largest country in Europe (if not to consider Russia
                                                                                                                                                                   40%
           as European country with its greater part laying in Asia) with
                                                                                                                                                                   462,5
           undersaturated traditional retail markets as well as mail order
           and e-commerce sales.
                                                                                                                                                          31%
                                                                                                                                                          330,4
           The market of mail order in Ukraine is one of the most dy-
                                                                                                                                                  74%
           namic and perspective. This segment even on the peak of
                                                                                                                                                  252,8
           the global financial crisis showed a positive growth in UAH
                                                                                                                           8%
           equivalent. The negative dynamic index of 2009 is connected                                                26%                11%
                                                                                                                32% 151,7 164,0
           with a sudden devaluation of Ukrainian national currency in                                  35%                              145,4
                                                                                               28%              120,4
           late 2008. But already in 2010 the market had stabilized and                                 91,2
           showed the growth that made 74% in EUR equivalent. Ac-                              67,4
                                                                                       52,6
           cording to the experts’ predictions, an active growth of the
           inside sales market (by 30% annually) will be observed in the
           next 3-4 years.                                                             2003    2004     2005    2006     2007    2008     2009     2010   forecast forecast
                                                                                                                                                          for 2011 for 2012

           Capacity of the Ukrainian e-commerce market was approxi-
           mately 383 mln EURO in 2010, according to the data Appleton               Source: Ukrainian Direct Marketing Association, www.uadm.com.ua




                      STENDERS Company             MILANA engaged in       In the nearest two           According to Econo-                A third shop of
                      engaged in produc-           sale of women’s foot-   years MANGO com-             mist Intelligence Unit             American brand
oNe-liNe
     NeWs




                      tion and sale of             wear has decided to     pany plans to intro-         Kyiv entered the                   GAP, represented by
                      natural cosmetics is         find partner franchi-   duce on the Ukrai-           rating of the best                 the company GAP
                      planning to open not         sees in Ukraine.        nian market shops of         European cities for                Ukraine LTD., will be
                      less than 15 shops in                                men clothes MANGO            shopping-tourism,                  opened in November
                      Ukraine before the                                   HE and accessories           it took 27th place                 in Ukraine (Kyiv).
                      year 2015 thus bring-                                MANGO TOUCH.                 among 33 cities.
                      ing their total number
                      up to 25.
Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                        December	2011



Mayer. Meanwhile, according to the experts, the market shows                It should to be mentioned that a DirectTV niche is almost free
20-30% growth annually.                                                     in Ukraine. Currently this segment is represented by ten compa-
                                                                            nies, however only two of them, Studio Moderna and Telemedia,
Today there is more than a dozen big international companies                which control near 80% of the market, firmly occupy top posi-
specialized in mail order, successfully working in Ukraine. And             tions in this sphere. Such a conjuncture gives foreign companies
having analyzed the tendency of the last decade, we may con-                wide opportunities to approach the TV-commerce market.
firm that 1 or 2 international mail order companies annually
come to Ukrainian market.                                                   But if we speak about the e-shops, irrespective of active devel-
                                                                            opment of e-commerce in Ukraine, this market has not been
Most distance purchases make clothes and shoes (36.4%),                     saturated yet. Thus, according to the International career por-
books and magazines (23%), and electronic consumer goods                    tal hh.com.ua, in customers’ opinion, currently we have lack
(20.3%). Sales of cosmetics and body care products make                     of e-shops, offering food products (36.4%), clothes and shoes
9.1%, furniture and household appliances – 7.4%, the other                  (25%), household appliances (22.8%), gift products (18%),
kinds of goods – near 4%.                                                   books and leisure products (16.6%).

Diagram	2.	Chronology of international inside sales companies’ entry into Ukrainian market, 2000-2011




            2003              2004              2005              2006   2007      2008         2009             2010     2011

Source: Ukrainian Direct Marketing Association, www.uadm.com.ua


                                                                            and pricing. Indeed, irrespective of the general trend to the
Customer’s portrait                                                         growth of the value of ordered goods as well as people’s pur-
                                                                            chasing capacity, the average salary in Ukraine, like in other
The Ukrainian customers of mail-order companies are mainly
                                                                            developing countries is lower than in Europe and make ap-
women (57%). Herewith, Ukrainians 20 - 45 years of age most
                                                                            proximately $ 350.
frequently become the clients of mail order companies. And
the older a client, the greater chance that he will become an
active client.                                                              An average check amount of a typical wage Ukrainian bears
                                                                            witness of it. Thus, according to the data of Ukrainian Direct
It is noteworthy that from the soviet times when Ukraine was                Marketing Association, during 2010-2011 each Ukrainian at av-
a part of USSR and experienced an acute product shortage,                   erage spent EUR 55.5 for purchasing of textile/clothes/shoes,
Ukrainian customers still have a habit to have trust in quality             EUR 34.5 – for cosmetics, EUR 47.8 – for household applianc-
of products of European origin. At the same time, unlike Eu-                es, and EUR 72.9 – for other products (electronic appliances,
ropean customers, Ukrainians take a long delivery term, which               books, etc., which were not included into previous groups).
usually takes a month, with understanding and are more loyal
to the inside sales companies.                                              Continuation of the article – in next issue of Mail order Di-
                                                                            gest
But in the meanwhile, for successful work on Ukrainian mar-
ket an operator is to correctly select the collection of goods              source: www.distanseselling-ua.com




CusToMers’ beHavior iN iNTerNeT
aND DevelopMeNT oF e-CoMMerCe iN uKraiNe
The Search system Yandex has made the analysis of custom-                   the web-site of the mail order operator Bonprix.ua (9%), Goog-
ers’ behavior in internet and development of e-commerce in                  le search engine (8%), Ebay.com (7%), Yandex and Price.ua (5%
Ukraine. The research can be conveniently divided into three                each), Hotline.ua (4%) closes the top-10 rating.
parts: shops, the most popular goods, and competition.
                                                                            Among the most crucial factors that influence the choice of e-
According to the company TNS, answering the question where
                                                                            shop are its reliability and the feedback. The way and terms of
they will choose and purchase goods, in 33% of cases Ukrainians
name the shop Rozetka (household appliances and computers),                 delivery as well as the price occupy the second place. Novelty
more rarely – 17.14 and 10% accordingly go for Emarket.ua ( e-              of goods and shop location play the last role. Even 16% of citi-
board of free advertisement), Aukro.ua (internet-auction), and              zens in the capital, where there is a great number of shops, or-
Torg.ua (e-board of free advertisement). These are followed by              der goods in other cities, in regions this number reaches 80%.




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Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                     December	2011



Almost a half of users come to the sites of e-shops via the
internet advertisements, on-line and off-line shops have direct
traffic, but only the high rollers who promote themselves in
the search systems have their search traffic (but they make a
low per cent).

Near 90% of users read the page about delivery, one in five
looks through the contact information, and 20-70% (depend-                                                   20
ing on the shop) of consumers do not reach the end of good’s
ordering.                                                                              12

In the second part of the investigation the specialists studied the                               15
most popular products. The diagram shows, what purchases,                                                            30
both on-line and off-line, consumers made during the last year.

The major part of internet users chooses products exactly in
e-shops, and purchase them there as well. The construction                                             64          165
materials and bathroom fitments, which are more frequently
bought off-line, made the only exception.

The major part of “on-line customers” still prefers to pay in                        40
cash. The electronic payments are less popular when purchas-                                                       280
ing the construction materials, but the books, in the contrary,                              60
are frequently paid for with a card.

In order to find out, which categories of products are selling
easier, the analysts counted the correlation “number of shops/
number of customers” (the figure in parenthesis near the product
category are the data of Yandex.Market). A red arrow means a
high competition but a low number of clicks, a green one means
a low competition with a high demand. It is interesting that the
number of shops selling vacuum cleaners and laptops are nearly
the same, but the demand for the latter is in 4 times higher.         source:	www.ain.ua




voluMes oF e-CoMMerCe TraDe
iN uKraiNe iNCreaseD THis auTuMN
During autumn 2011 Ukrainians more often purchased clothes,           The	most	popular	product	groups*
footwear, computers and mobile phones in Internet.
                                                                                                    Change	of	             Change	of	
As the editorial board of TradeMaster portal was informed,                                          demand	in	            offer	in	au-
according to the survey, held by the analysts of all-Ukrainian                                     autumn	2011	            tumn	2011	
                                                                            Product	group
internet-auction Aukro.ua, the greatest number of operations                                          in	com-             in	compari-
during the autumn season demonstrated the same categories                                          parison	with	            son	with	
of goods which were active during the whole summer.                                                  summer	                summer

Three leaders, which have sufficiently increased the sales             Clothing, footwear and
                                                                                                            +39%               +6%
volumes in the last three months, are the following catego-            accessories
ries: «Clothing, footwear and accessories» – 39%, «Laptops             Laptops and computers                +31%               +10%
and computers» – 31%, and also «Mobile phones and smart-
phones» – 29%.                                                         Mobile phones and
                                                                                                            +29%               +26%
                                                                       smartphones
The category «Collecting» also showed a sustainable growth.
The sales volumes in this category grew by 20% in comparison           Collecting                           +20%               +10%
with the summer period.
                                                                      * Data provided by Aukro.ua as of November 27, 2011.
Nevertheless seasonality has made allowances in general dy-
namic of the growth of sales in separate product groups. For          Meanwhile, according to the expert, n comparison with coun-
example, in category «Sport, tourism» the level of demand re-         tries of Western Europe and North America, where internet
mained unchanged, i.e. on the «summer» level.                         trade actively covers near 80-90% of population, Ukrainian e-
                                                                      commerce segment in the nearest future will face a rash devel-
«E-commerce penetration rate to everyday life of Ukrainians is        opment; there are all prerequisites for it.
best of all reflected by continuously growing demand behav-
iour towards almost all product categories, - Dmitrii DZYGOV-         Consolidated figures for September-November and June-Au-
BRODSKYI, a head of Aukro.ua analytics department. – Today            gust 2011 are compared.
one in two internet-users in Ukraine has purchased or sold in
Net at least once in life».                                           source: www.trademaster.com.ua



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Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                  December	2011




WHaT FooTWear Do uKraiNiaNs buy?
                                                                  Alexander Borodynya noted that last year 109 mln pairs of shoes
                                                                  were imported from China, among them only 6% of genuine
                                                                  leather. “It means that today 70% of footwear on the market
                                                                  is from China and almost all of it is of artificial leather”, he said.

                                                                  At the same time according to enquiry almost three fourths of
                                                                  Ukrainians are sure that they buy footwear of genuine leather.
                                                                  In this context the Footwear Manufacturers League called for
                                                                  acceleration of the Cabinet of Ministers Decree introduction
                                                                  concerning compulsory specifying of the leather type the foot-
                                                                  wear was made of.

Today 70% of pairs of shoes in Ukraine were manufactured          By the way. The Cabinet of Ministers of Ukraine has already
of artificial leather and imported from China. This was said by   issued the Decree which envisages that a commodity manufac-
Alexander Borodynya, the President of the Footwear Manufac-       turer must specify the material the footwear is made of. The
turers League, during the round-table talk on the topic “Pre-     Decree will become valid in January 1-st, 2013.
vention of law on economic competition protection violations
on non-food markets”.                                             source: www.proretail.info




uKraiNiaNs speNT For eleCTriCal gooDs
by 25% More THaN iN a previous year




According to the investigation made by GfK Ukraine in Q3 of       drying machines, the product categories of large household ap-
2011 Ukrainian market of household appliances and electronics     pliances showed their growth by 16%. The groups of freezing
has grew by 25% in comparison with the Q3 of 2010. “IT-sector     chambers and washing machines have demonstrated the best
and the large appliances sector still provide the biggest sales   indices of growth, equal to 34% and 23% respectively. The oth-
volumes, with its aggregate share making a half of total sales    er groups were demonstrating almost identical dynamics: the
of household and electronic appliances. At the meanwhile IT-      growth of sales made 11-20%.
sector continues to boost its share, which enables us to assume
its chance to take a leading position”, - the company admitted.   The telecommunication equipment segment showed a mod-
                                                                  erate increase by 15%. Mobile phones still remain the big-
The third quarter usually characterizes with a high sales level   gest group on this market (with 60% share). At the same time
in the IT-sector, because August-September are the “back-         smartphones are onwards and upwards at a great pace – their
                                                                  share increased by 91.7% and makes now 37% that is equal to
to-school” months, when IT-products are especially popular.
                                                                  821 million UAH (approx. $103 mln).
The segment of photo appliances also shows rather positive
growth (30%) while being one of the smallest segments of          Irrespective of pessimistic forecasts that 2011 would be chal-
household and electronic appliances market.                       lenging both for retail sellers and customers, the third quarter
                                                                  became a successful continuation of a current year. “A sufficient
The common market of household and electronic appliances          growth is observed on all markets, starting from the absolute
had been gaining momentum since the beginning of the year         leader – a sector of information technologies, than has grown
and now it constitutes near 11 billion UAH (approx. $1,4 bln).    almost by a half. The market of household appliances and pho-
The sales of small household appliances in Q3 of 2011 made        tomarket showed a considerable growth with their sales vol-
0.63 billion UAH (approx. $79 mln), that is by 13% more than in   umes increased by one third. Basing on the positive estimation
Q3 of 2010. As before a customer is interested in coffee-making   of a current situation it may be assumed that the year-end will
machines. From July till September the number of sold made        be as successful as its beginning”, - the investigators confirm.
by 37% more than in the same period in 2010. Except for the
smallest according to the sales volumes groups of washing and     source: www.delo.ua




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Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                   December	2011




uaDM speCial
uDMa Has esTiMaTeD THe MarKeT voluMes
oF DireCT MarKeTiNg iN 2011
Ukrainian Direct Marketing Association (UDMA) has estimated          A sufficient growth will be also observed in the segment of da-
the volumes of direct-marketing (DM) in 2011 and represented         tabases. It is predetermined, among the other factors, by stabili-
the forecasts for 2012.                                              zation both after a «feverish» period of adoption of the Law of
                                                                     Ukraine «On Personal Data Protection» and the increase of the
According to the Association, in 2011 the DM market in-              cost per unit of addresses, contained in the personal information
creased by 20% in comparison with the previous year and              databases, organized in a strict compliance with the said law.
made 1,141.90 million UAH. The sphere of Call-Centres (CC)
showed a particular development: its growth made 31%. It
                                                                                                                               Fore-
became possible owing to the opening of new CC-platforms                                                              Changes	
                                                                                             Total	in	      Total		             cast	
and ramping-up of the volumes of regular market players. By                                                           in	com-
                                                                                              2010,	      in	2011,	 	            for	
quantity the segments of address and non-address direct mail                                                          parison	
                                                                                             million	      million	            2012,		
demonstrated insignificant growth, but in money equivalent                                                              with	
                                                                                              uAH           uAH                million	
their volumes increased by 13 and 18% accordingly mainly due                                                          2010,	%
                                                                                                                                uAH
to the growth of postal tariffs.
                                                                      Direct	market-
                                                                      ing,	including
                                                                                                	            	          	
The growth of service providers’ and customers’ marketing
competence has positively influenced the «creative, consulting,       Address
and management projects» segment, which increased by 35%.                                     230,4        271,50     +18%       305,00
                                                                      direct mail
In 2011 experts admit that the market of address databases            Non-Address
                                                                                               183         206,80     +13%       228,00
has declined by 31% that is mainly connected with fearfulness         direct mail
of the market players and their incomprehension of a new              Data bases mar-
Law of Ukraine «On Personal Data Protection» as well as ac-                                    5,94         4,10       -31%        5,70
                                                                      ket
tive development of different partner projects, which enable
to build up a communication with potential customers without          Creative, consult-
exchange of personal information databases.                           ing and manage-          37,6        50,60      +35%        60,50
                                                                      ment projects
In 2012 the UDMA experts predict the growth in all DM direc-          Call-Centres
tions. This will be promoted by the following factors. «First of                               220         294,80     +34%       347,00
                                                                      services
all, the «natural» growth of a demand for DM services, - Va-
lentyn Kalashnyk, the President of Ukrainian Direct Marketing         Production of ma-
Association explains. – Secondly, the parliament elections and        terials for address      238         276,00     +16%       308,00
Football Championship Euro-2012 will become additional fac-           direct mail
tors influencing the use of address and non-address direct mail       Attachments to
and call-centre services. Thirdly, there remains a sustainable        printed publica-         32,7        38,10      +17%        43,50
tendency for new big European market players, who naturally           tions
use the whole range of DM-services, to enter Ukrainian dis-
tance selling market. Meanwhile, the companies specialized in               Total:           947,64       1	141,9     +20%      1	297,7
mail order that have been already working on the market con-         *1 EURO = 10,4 UAH,       1 dollar = 8,00 UAH
tinue to boost their marketing powers (this applies especially
to the attachments to printed publications)».                        source: www.distanceselling-ua.com




legislaTive NeWs
THe CabiNeT oF MiNisTers oF uKraiNe
oFFers To regulaTe THe aCTiviTy oF e-sHops
The Cabinet of Ministers of Ukraine offers the Verhovna Rada         to execute and store documents related to their business activ-
of Ukraine to regulate the activity of e-shops. A corresponding      ity (including sale-purchase of goods).
draft law “About internal trade” was approved by the govern-
ment on October 12.                                                  Otherwise strict punitive measures will be applied to them.
                                                                     Here we don’t speak about storage facilities as those prod-
It offers to determine the peculiarities of organization of e-       ucts for sale may be stored on the partner’s facilities, if, for in-
shops in separate article of a law. Particularly, it is determined   stance, we mean such goods as household appliances, kitchen
for entrepreneurs to obligatorily have office, where they have       tabletops, books etc.




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Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                        December	2011



                                                                         Also there was developed a special norm in the Draft Law that
                                                                         bans e-selling of medicines. Government Plenipotentiary for de-
                                                                         regulation of economic activities Mikhail Brodsky admitted that
                                                                         the greatest problem of e-selling lies in so-called one-day sites,
                                                                         by means of which fids of rubbish and adulteration are “off-
                                                                         loaded”. As a result of such a pseudo-business, absence of any
                                                                         warranties and liabilities legally acting e-shops, which sell quality
                                                                         products and pay all taxes are affected and, finally, they are not
                                                                         able to compete with unfair business practices.

                                                                         Currently the draft law is under follow-up revision in the Cabi-
                                                                         net before it will be submitted to the Verhovna Rada.

                                                                         According to the agency, the Ministry of Economy has admitted
                                                                         the necessity to regulate by law activity of e-shops as far back
                                                                         as March 2009. Andriy Blyzniuk, a Deputy Minister of economy
                                                                         at that time, noted that internet trade was only regulated by
It is also planned to lay entrepreneurs under an obligation that         the law “On protection of consumers”, and the Ministry of
they should provide customers with information about their               Economy was drafting the law “On internal trade”, covering
name, location, state registration, availability of patent or licence,   global approach towards the internet-trade regulation.
goods and terms of sale-purchase agreement by means of publi-
cation in catalogues, booklets, prospects, and in Internet.              source: www.bin.ua




THe NeW TraDe legislaTioN Will eNable THe Major
oNliNe sellers To iNCrease voluMes oF sales
Before the end of the year the Ukraine is expected to alter              sue. Only minor private traders, who nowadays normally keep
the regulations for virtual trade. The appropriate draft law is          their stock at home, will have to conquer new expenditures
already registered in parliament. The internet-shops will thus
undertake to arrange for relevant offices and storage facilities
as well as to provide the buyers with all the information as to
licenses and patents. In the opinion of some experts the poky
online shops will have to close or work illegally.

At the same time the big networks will increase the volumes of
their trade and as a result will be able to lower the prices. In
this way, the manager of Internet project Rozetka, Mr. Vladislav
Chechetkin, believes, some enforcement of the state regula-
tion will definitely benefit the online traders. In a guess of the
businessman, the new principles will add up to a reduction
of over-the-top level of fraudulence in the network. Besides,
the representatives of major operators of the online trade be-
lieve that the prices may even go down in case only major and
medium-sized traders remain in the market. Reduction in the
number of online trade participants will lead to a fact that the
remainder internet–shops will increase their turnover since this
trade channel has already its own permanent audience who                 for a rent. Besides that, a major operator is to easier handle
will not go to nowhere.                                                  the functionality of his business. For example, there is always a
                                                                         possibility for big internet shops to provide non-cash transac-
The remaining shops will have to deal with more orders, to               tions with use of bank cards, while small traders mostly accept
carry out more discount actions, to order more products. And             cash payments. The pricing policy in a new regulatory realities
with procurement of big wholesale batches of goods such an               will mainly depend on business appetites and competition in
operator will be able get a more significant discounts from              the market.
importers or manufacturers. Moreover, for the major opera-
tors the availability of warehouses is not an out-of-the-blue is-        source: www.ua-retail.com




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Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                December	2011




iNTerNeT NeWs
WebMoNey Has sTarTeD To aCCepT
payMeNTs THrougH TerMiNals, baNKs
aND iNTerNeT baNKiNg iN uKraiNe
Now any website connected to the WebMoney system may               amount deposited is not enough to pay for the acquisition, the
accept payments from any payment terminals in Ukraine. After       customer will receive SMS noting the amount necessary to pay
choosing the payment through terminal option on a website          to the same account number.
a customer will receive SMS with a payment code. Then he
should choose WebMoney on any payment terminal and enter           WebMoney underlines that the benefit of this solution is the
the received code instead of the purse number. After deposit-      typical program interaction between a website and Web-
ing the seller will receive a message about the accepted pay-      Money: web shops and sites where WebMoney acceptance is
ment. Payments may in the same way be accepted through             already connected may start accepting money from terminals,
partner banks` cashes.                                             cashes, Internet banking without any adaptations. It is enough
                                                                   only to turn on the relevant option in the settings.
“This will infinitely extend the payment audience of a website
as a customer will need no WebMoney registration”, the com-        For seller the acceptance of such payments looks absolutely
pany says.
                                                                   the same as the acceptance of payments from WebMoney
                                                                   purses except for some peculiarities. Besides, this method may
The customer will pay the acquisition cost plus terminalbank
commission fee. The commission fee differs depending on the        be used to pay only for the acquisitions which may be invoiced
chosen method, therefore it is recommended to pay 10% more         in UAH (WMU). The payment is accepted to the seller`s U-
of the cost just to be on the safe side. If the amount deposited   purse. The payment may be made only in Ukrainian terminals
is more than the acquisition cost + terminalbank commission       (any ones), cashes and Internet banking of the banks listed.
fee, then the change will be credited to the WebMoney Check
and may be used for online acquisitions. And vice versa, if the    Source: www.ain.ua




CHilDreN gooDs, WHiCH are NuMber oNe
iN iNTerNeT aMoNg uKraiNiaNs
                               owadays, a growing number of        requested children products. From among the toys parents
                               Ukrainians who have children        most often buy interactive games, educational toys, namely
                               order all necessary goods for       sorters and playing carpets.
                               them in e-shops. Exceptionally
                               high percentage of purchases        Sterilization installation for feeding bottles, heating device for
                               is accounted for by regions.        feeding bottles, yoghurt maker and blander belong to the
                               Where there are few shops of-       most popular household appliances searched by parents in
                               fering a wide range of children     Internet.
                               products from distinguished
                               manufacturers.                      It is worth to be mentioned that consumers of children e-shops
                                                                   are the most active participants of discussions of products on
                             The price comparison system           the web-sites. One in two users who bought a children prod-
                             Vcene.ua carried out an in-           uct in the net scurry to share their opinion on a children prod-
                             vestigation among its users           uct with others.
and studied out, what children products are most frequently
bought in Internet.                                                Reference: The price comparison system Vcene.ua belongs to
                                                                   the group of companies Allegro (aukro.ua, emarket.ua, prom.
According to investigation data the most popular categories        ua, slando.ua), the biggest holding in the sphere of electronic
of children products among users of the price comparison sys-      commerce on UA.net. Today Vcene.ua occupies a leading
tem are baby carriages and accessories to them, children feed-     position among price comparison sites operating in Ukraine.
ing chairs, and playpens.                                          Near 100 thousand people visit the site Vcene.ua every day. A
                                                                   key purpose of the system is to give users an opportunity to
The most popular models of carriages, which were searched          compare prices for goods, to estimate the operation of every
by parents on web-site Vcenе.ua in September 2011 were Ta-         e-shop, to study comments on goods and to make a successful
koJumper X, AnmarZico, and Roan MARITA.                            purchase.

Diapers, bins for them, and wet wipes are the most frequently      Source: www.e-commerce.com.ua




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                                                                                                                      7
Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST                                                                           December	2011




          oNe iN Five uKraiNiaNs is a user oF soCial MeDia
                                                                                7%       9%                                         7%
                      3% 6%      11%         17%                                                    15%                                           15%
                                                                               12%                                      25%
                                                                                                              28%                          30%
                                                                                         16%                                        23%
                                                                                                    12%
                                                                               17%                                                                27%
                      2 4% 5% 5%                                                                                        14%
                                                                                         29%                  19%                          13%
                                                                                                    31%                             24%
                                                          2009                 22%
                                             2008
                                                                                                                        29%                24%
                      1 3 4% 6%                                                                               22%
                                             2010         1-3 q’ 2011
                                                                                         27%                                                      55%
                                                                                                    24%                             35%
                                                                               43%                            14%       18%                24%
                      4%    9%         14%          20%
                                                                                         20%        18%       17%       14%         12%    9%             2%
                                                                                                                                                          1%


          According to the investigation made by GfK Ukraine in Q3 of
          2011 17% of Ukrainians were the users of social networks, 5% of            User which almost don`t visit social network
          them use chats, forums and blogs. Most frequently users check
                                                                                     Regular, but rare than once per week
          their accounts in VKontakte for refreshments – 43% do it several
          times a day. In the contrary, Facebook and Twitter have rather             Once or twice per week
          big share of registered users but on practice they almost do not           Once per day
          use these social nets – 25% and 28% respectively.                          Several times per day

          More than a half of users are on-line less than during 10 hours      instance, only 61% of people of this age group are registered
          a week. One hour or less – 13%, 2-5 hours – 27%, and 6-10
                                                                               in Facebook.
          hours – 18% of users. Those who stay on-line for 51 hours
          or more constitute only 3%. Herewith the main purposes of
                                                                               Odnoklassniki are popular mostly among those at the age of
          Internet access remain e-mail, social networks, searching for
          information, downloading of music and video, and search-             36 and older. The expansion of internet audience in Ukraine
          ing for educational information. The major part of systematic        takes place mainly owing to the retirees and residents of small
          Ukrainian users belongs to the Russian social net VKontakte.         settlements with population up to 50 thousand people. Such
          The second place goes to Odnoklassniki, and the third is oc-         settlements make in total near 25% of the state’s population.
          cupied by Facebook. 95% people in the age of 16-25 are reg-
          istered in VKontakte. It’s more than in the other social nets. For   Source: GfK Ukriane




          THe FirsT CHiNese e-sHop
          sTarTeD WorKiNg iN uKraiNe
          The Corporation 139 Group (China) has opened a Chinese e-            As the corporation admits, the term of goods delivery from
          shop 139 shopping for Ukrainian customers, as the President          China to Ukraine makes approximately four-seven working
          of 139 Group Huang Qin Hung informed at the press-confer-            days, the cost of delivery is about $ 12-15 per kg. Payments are
          ence held in Kyiv on Monday.                                         accepted by means of the most of known payment systems.

          This is the first Chinese e-shop in Ukraine, which is a multi-       By now permanent representative offices of 139 Group have
          functional international platform for sellers and buyers not         been opened in cities of China, Ukraine, Russia, Kazakhstan
          only providing e-commerce services but also guaranteeing a           and other CIS countries. More than 5 thousand shops with
          «door-to-door» delivery. Ukrainian sellers also can log in to the    more than 50 thousand goods are represented on the web-
          e-commerce system. At this point registration is free.               site. The number of registered users exceeded 18 thousand.

          139 shopping hasn’t obtained a status of legal entity in Ukraine     Source: www.ua-retail.com
          yet. 139 Group’s partners, specialized in express-delivery, pro-
          vide delivery of goods to a final point.
CoNTaCT




                If you want to decline or recommend digest                      Hot Line +380 (44) 495 7885
   us




                to your colleagues, please feel free to contact us by
                distance_selling_in_UA@uadm.com.ua                              © UDMA, 2011




          FresH DisTaNCe selliNg NeWs               SEE our PaGE on                  BuSInESS HoroSCoPE 2012
                                                                                                                                          8

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Distance Selling Digest_6_issue

  • 1. 6th Issue December 2011 CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST Dear Colleagues, We, the Ukrainian Direct Marketing Association, are glad to wish you a Merry Christmas and a Happy New Year. We wish your business a very successful and prosperous New Year 2012, and your achievements and triumphs to inspire wonder of the public. Valentin Kalashnik, President of UDMA MarKeT NeWs Mail orDer aND e-CoMMerCe MarKeT iN uKraiNe Ukraine still remains Terra Incognita for a large majority of Eu- Diagram 1. Capacity of the mail-order market in Ukraine ropean companies specialized on the mail order. Meanwhile, in mln EUR, in 2003-2012. it is the largest country in Europe (if not to consider Russia 40% as European country with its greater part laying in Asia) with 462,5 undersaturated traditional retail markets as well as mail order and e-commerce sales. 31% 330,4 The market of mail order in Ukraine is one of the most dy- 74% namic and perspective. This segment even on the peak of 252,8 the global financial crisis showed a positive growth in UAH 8% equivalent. The negative dynamic index of 2009 is connected 26% 11% 32% 151,7 164,0 with a sudden devaluation of Ukrainian national currency in 35% 145,4 28% 120,4 late 2008. But already in 2010 the market had stabilized and 91,2 showed the growth that made 74% in EUR equivalent. Ac- 67,4 52,6 cording to the experts’ predictions, an active growth of the inside sales market (by 30% annually) will be observed in the next 3-4 years. 2003 2004 2005 2006 2007 2008 2009 2010 forecast forecast for 2011 for 2012 Capacity of the Ukrainian e-commerce market was approxi- mately 383 mln EURO in 2010, according to the data Appleton Source: Ukrainian Direct Marketing Association, www.uadm.com.ua STENDERS Company MILANA engaged in In the nearest two According to Econo- A third shop of engaged in produc- sale of women’s foot- years MANGO com- mist Intelligence Unit American brand oNe-liNe NeWs tion and sale of wear has decided to pany plans to intro- Kyiv entered the GAP, represented by natural cosmetics is find partner franchi- duce on the Ukrai- rating of the best the company GAP planning to open not sees in Ukraine. nian market shops of European cities for Ukraine LTD., will be less than 15 shops in men clothes MANGO shopping-tourism, opened in November Ukraine before the HE and accessories it took 27th place in Ukraine (Kyiv). year 2015 thus bring- MANGO TOUCH. among 33 cities. ing their total number up to 25.
  • 2. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 Mayer. Meanwhile, according to the experts, the market shows It should to be mentioned that a DirectTV niche is almost free 20-30% growth annually. in Ukraine. Currently this segment is represented by ten compa- nies, however only two of them, Studio Moderna and Telemedia, Today there is more than a dozen big international companies which control near 80% of the market, firmly occupy top posi- specialized in mail order, successfully working in Ukraine. And tions in this sphere. Such a conjuncture gives foreign companies having analyzed the tendency of the last decade, we may con- wide opportunities to approach the TV-commerce market. firm that 1 or 2 international mail order companies annually come to Ukrainian market. But if we speak about the e-shops, irrespective of active devel- opment of e-commerce in Ukraine, this market has not been Most distance purchases make clothes and shoes (36.4%), saturated yet. Thus, according to the International career por- books and magazines (23%), and electronic consumer goods tal hh.com.ua, in customers’ opinion, currently we have lack (20.3%). Sales of cosmetics and body care products make of e-shops, offering food products (36.4%), clothes and shoes 9.1%, furniture and household appliances – 7.4%, the other (25%), household appliances (22.8%), gift products (18%), kinds of goods – near 4%. books and leisure products (16.6%). Diagram 2. Chronology of international inside sales companies’ entry into Ukrainian market, 2000-2011 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Ukrainian Direct Marketing Association, www.uadm.com.ua and pricing. Indeed, irrespective of the general trend to the Customer’s portrait growth of the value of ordered goods as well as people’s pur- chasing capacity, the average salary in Ukraine, like in other The Ukrainian customers of mail-order companies are mainly developing countries is lower than in Europe and make ap- women (57%). Herewith, Ukrainians 20 - 45 years of age most proximately $ 350. frequently become the clients of mail order companies. And the older a client, the greater chance that he will become an active client. An average check amount of a typical wage Ukrainian bears witness of it. Thus, according to the data of Ukrainian Direct It is noteworthy that from the soviet times when Ukraine was Marketing Association, during 2010-2011 each Ukrainian at av- a part of USSR and experienced an acute product shortage, erage spent EUR 55.5 for purchasing of textile/clothes/shoes, Ukrainian customers still have a habit to have trust in quality EUR 34.5 – for cosmetics, EUR 47.8 – for household applianc- of products of European origin. At the same time, unlike Eu- es, and EUR 72.9 – for other products (electronic appliances, ropean customers, Ukrainians take a long delivery term, which books, etc., which were not included into previous groups). usually takes a month, with understanding and are more loyal to the inside sales companies. Continuation of the article – in next issue of Mail order Di- gest But in the meanwhile, for successful work on Ukrainian mar- ket an operator is to correctly select the collection of goods source: www.distanseselling-ua.com CusToMers’ beHavior iN iNTerNeT aND DevelopMeNT oF e-CoMMerCe iN uKraiNe The Search system Yandex has made the analysis of custom- the web-site of the mail order operator Bonprix.ua (9%), Goog- ers’ behavior in internet and development of e-commerce in le search engine (8%), Ebay.com (7%), Yandex and Price.ua (5% Ukraine. The research can be conveniently divided into three each), Hotline.ua (4%) closes the top-10 rating. parts: shops, the most popular goods, and competition. Among the most crucial factors that influence the choice of e- According to the company TNS, answering the question where shop are its reliability and the feedback. The way and terms of they will choose and purchase goods, in 33% of cases Ukrainians name the shop Rozetka (household appliances and computers), delivery as well as the price occupy the second place. Novelty more rarely – 17.14 and 10% accordingly go for Emarket.ua ( e- of goods and shop location play the last role. Even 16% of citi- board of free advertisement), Aukro.ua (internet-auction), and zens in the capital, where there is a great number of shops, or- Torg.ua (e-board of free advertisement). These are followed by der goods in other cities, in regions this number reaches 80%. FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 2
  • 3. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 Almost a half of users come to the sites of e-shops via the internet advertisements, on-line and off-line shops have direct traffic, but only the high rollers who promote themselves in the search systems have their search traffic (but they make a low per cent). Near 90% of users read the page about delivery, one in five looks through the contact information, and 20-70% (depend- 20 ing on the shop) of consumers do not reach the end of good’s ordering. 12 In the second part of the investigation the specialists studied the 15 most popular products. The diagram shows, what purchases, 30 both on-line and off-line, consumers made during the last year. The major part of internet users chooses products exactly in e-shops, and purchase them there as well. The construction 64 165 materials and bathroom fitments, which are more frequently bought off-line, made the only exception. The major part of “on-line customers” still prefers to pay in 40 cash. The electronic payments are less popular when purchas- 280 ing the construction materials, but the books, in the contrary, 60 are frequently paid for with a card. In order to find out, which categories of products are selling easier, the analysts counted the correlation “number of shops/ number of customers” (the figure in parenthesis near the product category are the data of Yandex.Market). A red arrow means a high competition but a low number of clicks, a green one means a low competition with a high demand. It is interesting that the number of shops selling vacuum cleaners and laptops are nearly the same, but the demand for the latter is in 4 times higher. source: www.ain.ua voluMes oF e-CoMMerCe TraDe iN uKraiNe iNCreaseD THis auTuMN During autumn 2011 Ukrainians more often purchased clothes, The most popular product groups* footwear, computers and mobile phones in Internet. Change of Change of As the editorial board of TradeMaster portal was informed, demand in offer in au- according to the survey, held by the analysts of all-Ukrainian autumn 2011 tumn 2011 Product group internet-auction Aukro.ua, the greatest number of operations in com- in compari- during the autumn season demonstrated the same categories parison with son with of goods which were active during the whole summer. summer summer Three leaders, which have sufficiently increased the sales Clothing, footwear and +39% +6% volumes in the last three months, are the following catego- accessories ries: «Clothing, footwear and accessories» – 39%, «Laptops Laptops and computers +31% +10% and computers» – 31%, and also «Mobile phones and smart- phones» – 29%. Mobile phones and +29% +26% smartphones The category «Collecting» also showed a sustainable growth. The sales volumes in this category grew by 20% in comparison Collecting +20% +10% with the summer period. * Data provided by Aukro.ua as of November 27, 2011. Nevertheless seasonality has made allowances in general dy- namic of the growth of sales in separate product groups. For Meanwhile, according to the expert, n comparison with coun- example, in category «Sport, tourism» the level of demand re- tries of Western Europe and North America, where internet mained unchanged, i.e. on the «summer» level. trade actively covers near 80-90% of population, Ukrainian e- commerce segment in the nearest future will face a rash devel- «E-commerce penetration rate to everyday life of Ukrainians is opment; there are all prerequisites for it. best of all reflected by continuously growing demand behav- iour towards almost all product categories, - Dmitrii DZYGOV- Consolidated figures for September-November and June-Au- BRODSKYI, a head of Aukro.ua analytics department. – Today gust 2011 are compared. one in two internet-users in Ukraine has purchased or sold in Net at least once in life». source: www.trademaster.com.ua FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 3
  • 4. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 WHaT FooTWear Do uKraiNiaNs buy? Alexander Borodynya noted that last year 109 mln pairs of shoes were imported from China, among them only 6% of genuine leather. “It means that today 70% of footwear on the market is from China and almost all of it is of artificial leather”, he said. At the same time according to enquiry almost three fourths of Ukrainians are sure that they buy footwear of genuine leather. In this context the Footwear Manufacturers League called for acceleration of the Cabinet of Ministers Decree introduction concerning compulsory specifying of the leather type the foot- wear was made of. Today 70% of pairs of shoes in Ukraine were manufactured By the way. The Cabinet of Ministers of Ukraine has already of artificial leather and imported from China. This was said by issued the Decree which envisages that a commodity manufac- Alexander Borodynya, the President of the Footwear Manufac- turer must specify the material the footwear is made of. The turers League, during the round-table talk on the topic “Pre- Decree will become valid in January 1-st, 2013. vention of law on economic competition protection violations on non-food markets”. source: www.proretail.info uKraiNiaNs speNT For eleCTriCal gooDs by 25% More THaN iN a previous year According to the investigation made by GfK Ukraine in Q3 of drying machines, the product categories of large household ap- 2011 Ukrainian market of household appliances and electronics pliances showed their growth by 16%. The groups of freezing has grew by 25% in comparison with the Q3 of 2010. “IT-sector chambers and washing machines have demonstrated the best and the large appliances sector still provide the biggest sales indices of growth, equal to 34% and 23% respectively. The oth- volumes, with its aggregate share making a half of total sales er groups were demonstrating almost identical dynamics: the of household and electronic appliances. At the meanwhile IT- growth of sales made 11-20%. sector continues to boost its share, which enables us to assume its chance to take a leading position”, - the company admitted. The telecommunication equipment segment showed a mod- erate increase by 15%. Mobile phones still remain the big- The third quarter usually characterizes with a high sales level gest group on this market (with 60% share). At the same time in the IT-sector, because August-September are the “back- smartphones are onwards and upwards at a great pace – their share increased by 91.7% and makes now 37% that is equal to to-school” months, when IT-products are especially popular. 821 million UAH (approx. $103 mln). The segment of photo appliances also shows rather positive growth (30%) while being one of the smallest segments of Irrespective of pessimistic forecasts that 2011 would be chal- household and electronic appliances market. lenging both for retail sellers and customers, the third quarter became a successful continuation of a current year. “A sufficient The common market of household and electronic appliances growth is observed on all markets, starting from the absolute had been gaining momentum since the beginning of the year leader – a sector of information technologies, than has grown and now it constitutes near 11 billion UAH (approx. $1,4 bln). almost by a half. The market of household appliances and pho- The sales of small household appliances in Q3 of 2011 made tomarket showed a considerable growth with their sales vol- 0.63 billion UAH (approx. $79 mln), that is by 13% more than in umes increased by one third. Basing on the positive estimation Q3 of 2010. As before a customer is interested in coffee-making of a current situation it may be assumed that the year-end will machines. From July till September the number of sold made be as successful as its beginning”, - the investigators confirm. by 37% more than in the same period in 2010. Except for the smallest according to the sales volumes groups of washing and source: www.delo.ua FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 4
  • 5. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 uaDM speCial uDMa Has esTiMaTeD THe MarKeT voluMes oF DireCT MarKeTiNg iN 2011 Ukrainian Direct Marketing Association (UDMA) has estimated A sufficient growth will be also observed in the segment of da- the volumes of direct-marketing (DM) in 2011 and represented tabases. It is predetermined, among the other factors, by stabili- the forecasts for 2012. zation both after a «feverish» period of adoption of the Law of Ukraine «On Personal Data Protection» and the increase of the According to the Association, in 2011 the DM market in- cost per unit of addresses, contained in the personal information creased by 20% in comparison with the previous year and databases, organized in a strict compliance with the said law. made 1,141.90 million UAH. The sphere of Call-Centres (CC) showed a particular development: its growth made 31%. It Fore- became possible owing to the opening of new CC-platforms Changes Total in Total cast and ramping-up of the volumes of regular market players. By in com- 2010, in 2011, for quantity the segments of address and non-address direct mail parison million million 2012, demonstrated insignificant growth, but in money equivalent with uAH uAH million their volumes increased by 13 and 18% accordingly mainly due 2010, % uAH to the growth of postal tariffs. Direct market- ing, including The growth of service providers’ and customers’ marketing competence has positively influenced the «creative, consulting, Address and management projects» segment, which increased by 35%. 230,4 271,50 +18% 305,00 direct mail In 2011 experts admit that the market of address databases Non-Address 183 206,80 +13% 228,00 has declined by 31% that is mainly connected with fearfulness direct mail of the market players and their incomprehension of a new Data bases mar- Law of Ukraine «On Personal Data Protection» as well as ac- 5,94 4,10 -31% 5,70 ket tive development of different partner projects, which enable to build up a communication with potential customers without Creative, consult- exchange of personal information databases. ing and manage- 37,6 50,60 +35% 60,50 ment projects In 2012 the UDMA experts predict the growth in all DM direc- Call-Centres tions. This will be promoted by the following factors. «First of 220 294,80 +34% 347,00 services all, the «natural» growth of a demand for DM services, - Va- lentyn Kalashnyk, the President of Ukrainian Direct Marketing Production of ma- Association explains. – Secondly, the parliament elections and terials for address 238 276,00 +16% 308,00 Football Championship Euro-2012 will become additional fac- direct mail tors influencing the use of address and non-address direct mail Attachments to and call-centre services. Thirdly, there remains a sustainable printed publica- 32,7 38,10 +17% 43,50 tendency for new big European market players, who naturally tions use the whole range of DM-services, to enter Ukrainian dis- tance selling market. Meanwhile, the companies specialized in Total: 947,64 1 141,9 +20% 1 297,7 mail order that have been already working on the market con- *1 EURO = 10,4 UAH, 1 dollar = 8,00 UAH tinue to boost their marketing powers (this applies especially to the attachments to printed publications)». source: www.distanceselling-ua.com legislaTive NeWs THe CabiNeT oF MiNisTers oF uKraiNe oFFers To regulaTe THe aCTiviTy oF e-sHops The Cabinet of Ministers of Ukraine offers the Verhovna Rada to execute and store documents related to their business activ- of Ukraine to regulate the activity of e-shops. A corresponding ity (including sale-purchase of goods). draft law “About internal trade” was approved by the govern- ment on October 12. Otherwise strict punitive measures will be applied to them. Here we don’t speak about storage facilities as those prod- It offers to determine the peculiarities of organization of e- ucts for sale may be stored on the partner’s facilities, if, for in- shops in separate article of a law. Particularly, it is determined stance, we mean such goods as household appliances, kitchen for entrepreneurs to obligatorily have office, where they have tabletops, books etc. FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 5
  • 6. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 Also there was developed a special norm in the Draft Law that bans e-selling of medicines. Government Plenipotentiary for de- regulation of economic activities Mikhail Brodsky admitted that the greatest problem of e-selling lies in so-called one-day sites, by means of which fids of rubbish and adulteration are “off- loaded”. As a result of such a pseudo-business, absence of any warranties and liabilities legally acting e-shops, which sell quality products and pay all taxes are affected and, finally, they are not able to compete with unfair business practices. Currently the draft law is under follow-up revision in the Cabi- net before it will be submitted to the Verhovna Rada. According to the agency, the Ministry of Economy has admitted the necessity to regulate by law activity of e-shops as far back as March 2009. Andriy Blyzniuk, a Deputy Minister of economy at that time, noted that internet trade was only regulated by It is also planned to lay entrepreneurs under an obligation that the law “On protection of consumers”, and the Ministry of they should provide customers with information about their Economy was drafting the law “On internal trade”, covering name, location, state registration, availability of patent or licence, global approach towards the internet-trade regulation. goods and terms of sale-purchase agreement by means of publi- cation in catalogues, booklets, prospects, and in Internet. source: www.bin.ua THe NeW TraDe legislaTioN Will eNable THe Major oNliNe sellers To iNCrease voluMes oF sales Before the end of the year the Ukraine is expected to alter sue. Only minor private traders, who nowadays normally keep the regulations for virtual trade. The appropriate draft law is their stock at home, will have to conquer new expenditures already registered in parliament. The internet-shops will thus undertake to arrange for relevant offices and storage facilities as well as to provide the buyers with all the information as to licenses and patents. In the opinion of some experts the poky online shops will have to close or work illegally. At the same time the big networks will increase the volumes of their trade and as a result will be able to lower the prices. In this way, the manager of Internet project Rozetka, Mr. Vladislav Chechetkin, believes, some enforcement of the state regula- tion will definitely benefit the online traders. In a guess of the businessman, the new principles will add up to a reduction of over-the-top level of fraudulence in the network. Besides, the representatives of major operators of the online trade be- lieve that the prices may even go down in case only major and medium-sized traders remain in the market. Reduction in the number of online trade participants will lead to a fact that the remainder internet–shops will increase their turnover since this trade channel has already its own permanent audience who for a rent. Besides that, a major operator is to easier handle will not go to nowhere. the functionality of his business. For example, there is always a possibility for big internet shops to provide non-cash transac- The remaining shops will have to deal with more orders, to tions with use of bank cards, while small traders mostly accept carry out more discount actions, to order more products. And cash payments. The pricing policy in a new regulatory realities with procurement of big wholesale batches of goods such an will mainly depend on business appetites and competition in operator will be able get a more significant discounts from the market. importers or manufacturers. Moreover, for the major opera- tors the availability of warehouses is not an out-of-the-blue is- source: www.ua-retail.com FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 6
  • 7. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 iNTerNeT NeWs WebMoNey Has sTarTeD To aCCepT payMeNTs THrougH TerMiNals, baNKs aND iNTerNeT baNKiNg iN uKraiNe Now any website connected to the WebMoney system may amount deposited is not enough to pay for the acquisition, the accept payments from any payment terminals in Ukraine. After customer will receive SMS noting the amount necessary to pay choosing the payment through terminal option on a website to the same account number. a customer will receive SMS with a payment code. Then he should choose WebMoney on any payment terminal and enter WebMoney underlines that the benefit of this solution is the the received code instead of the purse number. After deposit- typical program interaction between a website and Web- ing the seller will receive a message about the accepted pay- Money: web shops and sites where WebMoney acceptance is ment. Payments may in the same way be accepted through already connected may start accepting money from terminals, partner banks` cashes. cashes, Internet banking without any adaptations. It is enough only to turn on the relevant option in the settings. “This will infinitely extend the payment audience of a website as a customer will need no WebMoney registration”, the com- For seller the acceptance of such payments looks absolutely pany says. the same as the acceptance of payments from WebMoney purses except for some peculiarities. Besides, this method may The customer will pay the acquisition cost plus terminalbank commission fee. The commission fee differs depending on the be used to pay only for the acquisitions which may be invoiced chosen method, therefore it is recommended to pay 10% more in UAH (WMU). The payment is accepted to the seller`s U- of the cost just to be on the safe side. If the amount deposited purse. The payment may be made only in Ukrainian terminals is more than the acquisition cost + terminalbank commission (any ones), cashes and Internet banking of the banks listed. fee, then the change will be credited to the WebMoney Check and may be used for online acquisitions. And vice versa, if the Source: www.ain.ua CHilDreN gooDs, WHiCH are NuMber oNe iN iNTerNeT aMoNg uKraiNiaNs owadays, a growing number of requested children products. From among the toys parents Ukrainians who have children most often buy interactive games, educational toys, namely order all necessary goods for sorters and playing carpets. them in e-shops. Exceptionally high percentage of purchases Sterilization installation for feeding bottles, heating device for is accounted for by regions. feeding bottles, yoghurt maker and blander belong to the Where there are few shops of- most popular household appliances searched by parents in fering a wide range of children Internet. products from distinguished manufacturers. It is worth to be mentioned that consumers of children e-shops are the most active participants of discussions of products on The price comparison system the web-sites. One in two users who bought a children prod- Vcene.ua carried out an in- uct in the net scurry to share their opinion on a children prod- vestigation among its users uct with others. and studied out, what children products are most frequently bought in Internet. Reference: The price comparison system Vcene.ua belongs to the group of companies Allegro (aukro.ua, emarket.ua, prom. According to investigation data the most popular categories ua, slando.ua), the biggest holding in the sphere of electronic of children products among users of the price comparison sys- commerce on UA.net. Today Vcene.ua occupies a leading tem are baby carriages and accessories to them, children feed- position among price comparison sites operating in Ukraine. ing chairs, and playpens. Near 100 thousand people visit the site Vcene.ua every day. A key purpose of the system is to give users an opportunity to The most popular models of carriages, which were searched compare prices for goods, to estimate the operation of every by parents on web-site Vcenе.ua in September 2011 were Ta- e-shop, to study comments on goods and to make a successful koJumper X, AnmarZico, and Roan MARITA. purchase. Diapers, bins for them, and wet wipes are the most frequently Source: www.e-commerce.com.ua FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 7
  • 8. Cross-borDer DisTaNCe selliNg iN uKraiNe: Info DIGEST December 2011 oNe iN Five uKraiNiaNs is a user oF soCial MeDia 7% 9% 7% 3% 6% 11% 17% 15% 15% 12% 25% 28% 30% 16% 23% 12% 17% 27% 2 4% 5% 5% 14% 29% 19% 13% 31% 24% 2009 22% 2008 29% 24% 1 3 4% 6% 22% 2010 1-3 q’ 2011 27% 55% 24% 35% 43% 14% 18% 24% 4% 9% 14% 20% 20% 18% 17% 14% 12% 9% 2% 1% According to the investigation made by GfK Ukraine in Q3 of 2011 17% of Ukrainians were the users of social networks, 5% of User which almost don`t visit social network them use chats, forums and blogs. Most frequently users check Regular, but rare than once per week their accounts in VKontakte for refreshments – 43% do it several times a day. In the contrary, Facebook and Twitter have rather Once or twice per week big share of registered users but on practice they almost do not Once per day use these social nets – 25% and 28% respectively. Several times per day More than a half of users are on-line less than during 10 hours instance, only 61% of people of this age group are registered a week. One hour or less – 13%, 2-5 hours – 27%, and 6-10 in Facebook. hours – 18% of users. Those who stay on-line for 51 hours or more constitute only 3%. Herewith the main purposes of Odnoklassniki are popular mostly among those at the age of Internet access remain e-mail, social networks, searching for information, downloading of music and video, and search- 36 and older. The expansion of internet audience in Ukraine ing for educational information. The major part of systematic takes place mainly owing to the retirees and residents of small Ukrainian users belongs to the Russian social net VKontakte. settlements with population up to 50 thousand people. Such The second place goes to Odnoklassniki, and the third is oc- settlements make in total near 25% of the state’s population. cupied by Facebook. 95% people in the age of 16-25 are reg- istered in VKontakte. It’s more than in the other social nets. For Source: GfK Ukriane THe FirsT CHiNese e-sHop sTarTeD WorKiNg iN uKraiNe The Corporation 139 Group (China) has opened a Chinese e- As the corporation admits, the term of goods delivery from shop 139 shopping for Ukrainian customers, as the President China to Ukraine makes approximately four-seven working of 139 Group Huang Qin Hung informed at the press-confer- days, the cost of delivery is about $ 12-15 per kg. Payments are ence held in Kyiv on Monday. accepted by means of the most of known payment systems. This is the first Chinese e-shop in Ukraine, which is a multi- By now permanent representative offices of 139 Group have functional international platform for sellers and buyers not been opened in cities of China, Ukraine, Russia, Kazakhstan only providing e-commerce services but also guaranteeing a and other CIS countries. More than 5 thousand shops with «door-to-door» delivery. Ukrainian sellers also can log in to the more than 50 thousand goods are represented on the web- e-commerce system. At this point registration is free. site. The number of registered users exceeded 18 thousand. 139 shopping hasn’t obtained a status of legal entity in Ukraine Source: www.ua-retail.com yet. 139 Group’s partners, specialized in express-delivery, pro- vide delivery of goods to a final point. CoNTaCT If you want to decline or recommend digest Hot Line +380 (44) 495 7885 us to your colleagues, please feel free to contact us by distance_selling_in_UA@uadm.com.ua © UDMA, 2011 FresH DisTaNCe selliNg NeWs SEE our PaGE on BuSInESS HoroSCoPE 2012 8