Advance purchases - Ukrainians are more likely to buy New Year presents on Black Friday
Source：retailers
From：Taiwan Trade Center, Kyiv
Update Time：2019/11/06
Network operators of home appliances and electronics face a new challenge: Ukrainians are increasingly buying pre-New Year gifts with substantial discounts on Black Friday, which is why sales in December are seriously affected. This year, in the last month of the year, which is considered to be the key one, the revenue of retailers has decreased.
Participants in the household appliances and electronics market told Retailers that the December sales results were significantly worse than planned. However, few agreed to share more information. “December was worse than expected. We attribute this to the flow of sales into successful promotional activities in November, as well as a decrease in the consumer sentiment index,” said Alexander Velichko, executive director of household appliances for Epicenter K. General Director of the Eldorado Network, Vitaly Gresko, noted that the market had been actively growing until December, “and in the last month of the year everything stopped abruptly”. “After the strongly pronounced“ Black Friday ”, December-2018 was much more modest than December-2017. Black Friday partially took away the sales of December,” says Vitaly Gresko. Sales of “Eldorado” during the “Black Friday” period (November 29 - December 2) were 30-40% higher than on ordinary days.
In general, according to preliminary estimates, "Epicenter K", according to the results of last year, the volume of the market of household appliances and electronics (BT & E) grew by 25% - up to 85 billion UAH.
Large household appliances went "in the minus"
There are no drastic changes in the structure of sales of various product groups in the HAE segment. "According to the results of the year, the leaders are smartphones, televisions, large household appliances. But just in December, large household appliances sold worse than planned. TVs and smartphones sold well," the Eldorado CEO says.
This trend is confirmed in the company "Epicenter K". “Lost the dynamics, first of all, the“ investment categories ”- large household appliances. Televisions and consumer electronics, on the contrary, showed a good growth dynamics,” commented Alexander Velichko.
Online without jerking
A significant breakthrough in online sales in 2018 did not happen, despite the high hopes of market participants for the development of this direction. “There is no sharp increase in online sales. At the level of the year, the share of online sales has not changed compared to 2017,” said Vitaly Gresko. He refused to voice what share online takes in sales of Eldorado, but confirmed that for now it is not very large, however, like other market participants. At the same time, in 2019, the retailer sets the task of increasing it in the context of its own indicators by 30-50%, and in the market - by 10-20%.
The company "Epicenter K" claim that last year the share of online sales in the structure of the direction "Household Appliances" has more than doubled. The commercial component and advertising promotion were the main factors that helped the company to improve performance. However, in the context of all sales, the online channel still occupies a small share - in December it was about 5%.
Co-owner of the network of household appliances and electronics "Foxtrot" Valery Makovetsky at the end of the year said that the volume of the HAE market by the end of this year could grow by 18-20%, which in comparison with the growth in 2018 may indicate an expectation of a slowdown in the market. "Based on my experience, the election year does not affect the volume of business in any way. First of all, development of the economy, inflation, the ratio of the hryvnia to major currencies, and income of the population," he said.
Source：https://retailers.ua