According to the report titled “Consumer appliances in Ukraine”, consumer appliances registered a negative volume growth in Ukraine in 2016 owing to the pressure of the tough economic situation. Even as these declines were less severe than the ones recorded in 2015, low purchasing power continues discouraging consumers from purchasing non-essential consumer appliances or postponingsuch purchases until better times. Buying second-hand consumer appliances to minimize expenditure is a new common trend throughout the country. The report diverts our attention to some interesting facts e.g. in 2016, to maintain their volume shares, most manufacturers focused on affordability (seeing as how hard-pressed Ukrainian consumers are in the current economic background) rather than on developing new and more efficient consumer applianceproducts. To become cost effective, some companies relocated their production facilities to countries with lower manufacturing and service costs, increased the variety of low cost models offered by them, and even accepted reduced mark-ups in US dollar terms.
Habitual purchase preferences of Ukrainians is causing the surge in popularity of electronics and appliance specialist retailers for consumer appliances. On the one hand, this trend can be related to the shift towards omni-channel retailing strategies, while on the other hand, having good outlet coverage and offering the widest variety of products at the lowest prices means that electronics and appliance specialist retailers have had the opportunity to improve their volume shares in the retail distribution of consumer appliances.
The consumer appliances’ sales in Ukraine are expected show positive growth from the year 2017 but the rate of this increase is expected to be quite slow. This expected improvement is based on several factors, first of which is the economic recovery of Ukraine, which will have a positive effect on consumer purchasing power and thus on expenditure. Secondly, measure the industry growthwill in relativity to the current low base of 2016 (which saw consumer appliances register value and volume sales even lower than 2009). That being said, the most essential categories are expected to give the best results and the demand for non-essential consumer appliances is likely to remain restrained.
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